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Trends in Net College Tuition and Financial Aid, 1990-2020
While the sticker price of college rose $13,717 in real terms between 1989？90 and 2019？20, the net tuition students pay after financial aid rose just $4,526.
However, the net tuition received by institutions rose by a greater amount ($8,128). This is because institutions captured increases in external financial aid, such as Pell Grants, instead of passing those increases through to students.
External financial aid for the average student tripled in real terms between 1990 and 2020, from $1,726 to $5,328.
Had the net tuition institutions charge before external aid remained at 1990 levels (adjusting for inflation), students at four-year public colleges would have free tuition today, thanks to rises in external financial aid.
However, the net tuition received by institutions rose by a greater amount ($8,128). This is because institutions captured increases in external financial aid, such as Pell Grants, instead of passing those increases through to students.
External financial aid for the average student tripled in real terms between 1990 and 2020, from $1,726 to $5,328.
Had the net tuition institutions charge before external aid remained at 1990 levels (adjusting for inflation), students at four-year public colleges would have free tuition today, thanks to rises in external financial aid.
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