California once again is leading the nation in higher education, but not in a way anybody's cheering about.

The price of a public college education in the nation's most populous state has hit historic highs. While many states are struggling with budget deficits and exacting big cuts this year, California has the dubious distinction of raising fees for higher education the most.

This fall, the 610,000 students in the state's two public university systems will pay 35 percent to 40 percent more than they did a year earlier.

"California has this trend of boom-and-bust cycle of higher-education funding," said analyst Will Doyle of the National Center for Public Policy and Higher Education. "It might be in the interest of the state not to be leading the nation in this."

About 4 percent of potential students are priced out by every added $1,000 in tuition, Doyle said.

"Institutions of higher education are in a very precarious position right now," he said.

California is not alone. Arizona recently passed a 39 percent tuition increase. Maryland is up 21 percent, Virginia 19 percent, Wisconsin 18 percent. Nationwide, the average increase is 12.3 percent.

Increases are smaller at private universities, on average 5.8 percent for a second year.

"For private institutions the pressures are different," said Roland King of the National Association of Independent Colleges and Universities. "In the public sector they're responding to less support from their legislatures. In the private sector, it's declining return on endowments."

Considering that private colleges typically cost more than public institutions, a small percentage increase in fees can translate to bigger dollars. The Massachusetts Institute of Technology, for example, raised tuition by 4.9 percent. That means 2002's tuition of $28,230 went up by $1,400.

3-way downer
Powering California's woes are a slow economy, the bust of the high-tech boom and the recent energy crisis.
"It's so tough for students now. They're struggling with the largest fee hike in the nation and they're struggling as Californians, too," said Caitlin Gill, 22, a Humboldt State student.

Despite the increase, California's higher-education system is still about the best deal out there.

There are 410,000 students attending the California State University's 23 campuses, including SDSU and Cal State San Marcos, and their cost remains one the lowest in the nation despite being increased by 40 percent. An in-state student will pay $2,046, plus an average of $500 per year in mandatory campus fees.

The nine-campus University of California system has increased tuition by 35 percent. That means 200,000 undergraduates will now pay $5,247 per year in fees if they are California residents.

Compare those costs with the University of Vermont, where residents pay $9,636 per year in tuition and fees. Some Vermonters find it cheaper to pay out-of-state tuition at the State University of New York's Plattsburgh campus and commute across Lake Champlain on ferries.

Even after New York boosted fees 28 percent for this fall, out-of-state tuition of $8,300 could still look like a bargain to Vermont residents. Tuition and fees for New York residents will average $5,550.

At New Jersey's Rutgers University system, tuition and fees are $7,308 per year for in-state students.

In comparison, the University of Georgia system, with a recent fee increase of 8 percent, will cost $2,413 this fall.

The other costs
Tuition and campus fees do not represent the complete cost of attending college. Books, food, housing, computers and transportation are basic expenses.
The College Board estimates it all can add up to about $16,257 per year for students in the West.

"Those estimates that university administrators love to provide are not the true picture," said Humboldt's Gill, a student government representative. "Look at where California's universities are located – San Francisco, San Jose, San Diego, Santa Barbara. Those are areas that are notoriously expensive."

For University of California students, officials estimate that the basics – tuition, food, books and other living expenses – cost more than $17,000 per year. It's the same for the University of Illinois, and $18,000 for the University of Michigan.

Estimating the living expenses of college students is difficult because of diverse demographics.

The majority no longer are 18-to 22-year-olds who live in subsidized dormitories on campus. They are increasingly older, live on their own or with families in off-campus accommodations.

Officials at California's university systems note that the neediest students should be unaffected by the latest fee increases. The financial aid levels are being raised at UC and CSU, where more than 60 percent of students get some form of assistance. But critics warn that financial aid is not guaranteed and likely will not be available to all students, nor will it cover rising off-campus costs.

"That's a myth, that this is free money they are giving us," said student leader Gill. "These are loans, in many cases."

Outside work
Students critical of the fee increases point out that even the most generous financial aid package can't stop the cost of food and gas from going up, which means students have to work more hours outside of school to cover those costs, taking more time away from their studies, which in turn can mean it will take more semesters to graduate.
Within the California State University system, an estimated 80 percent of students work while attending school. Nearly half work full time, which often makes graduation within five years unlikely.

The rising costs and reduced governmental support has resulted in a policy shift in higher education nationally, said Cheryl Fields of the National Association of State Universities and Land Grant Colleges.

"The amount of support states have put in has been declining over the last two decades," Fields said. "That doesn't mean the legislatures don't care. But they can't charge more to prisoners or welfare recipients or Medicare (to cover budget deficits). You can raise tuition."

Average tuition at public four-year institutions in 1972 was $376 per year, according to the College Board. Thirty years later it had risen by nearly 1,000 percent, to $4,081.

During the 1980s, the median cost of college rose more than three times as fast as median income, but student aid did not increase significantly, according to College Board surveys. When aid increased in the 1990s, it mostly was in the form of student loans, not outright grants.

The shifting of the cost burden has enormous implications, analyst Doyle said. College graduates earn as much as $1 million more in their lifetimes than those with only high school diplomas, according to the U.S. Census Bureau. Earnings escalate with each level of advanced degree.

"Higher education is the gateway to middle class. When fees go up, the middle class will borrow more, while the lower-income students won't be able to borrow and will be shut out," Doyle said.

Humboldt's Gill agreed. "If you keep shutting the door to more classes of people, that means in 10 years and 20 years you won't have people contributing at those increased levels to the tax base, to pay for our universities, our roads and cities. That's a million (dollars) a person the state loses."