An expert has expressed concern over the rising sticker price at some colleges, which is now almost $100,000 a year.

• The cost of attending some colleges and universities is rapidly approaching six figures annually.
• Despite the fact that many families will pay significantly less, high sticker prices may still be a psychological obstacle for students from low- and moderate-income families.
• To bridge the affordability gap, financial aid, consisting of scholarships, grants, and loans, must be provided.

Some college attendance costs have reached nearly six figures, including tuition, fees, housing, textbooks, transportation, and other expenses.

Eight schools on The Princeton Review's "The Best 389 Colleges" list, including New York University, Tufts, Brown, Yale, and Washington University in St. Louis, have a sticker price of over $90,000 for the 2024-25 academic year, according to CNBC's data.

According to a 2023 estimate by Bryan Alexander, a senior scholar at Georgetown University, tuition adjustments could cause some institutions to surpass the $100,000 threshold as early as 2026.

Student loan borrowers anticipate debt cancellation, while private and public colleges offer financial aid and no-loan policies.

Despite grant aid, the sticker shock can discourage students from viewing college as a place they can attend, according to Sameer Gadkaree, president of the Institute for College Access and Success, a nonprofit organization that advocates for college affordability.

He stated that it's unattainable, especially for low- and moderate-income families.

The decline in state funding for higher education has led to substantial tuition hikes and shifted more of the financial burden of college onto students, as per a report by the Center on Budget and Policy Priorities, a nonprofit research organization in Washington, D.C. "This trend is definitely concerning," Gadkaree stated.

The majority of colleges are open-access community colleges or state universities with relatively low prices.

What families really pay for college

Despite the increasing cost of college, students and their parents seldom cover the full amount in cash.

In the 2023-24 academic year, the average amount families spent on education costs was $28,409, according to Sallie Mae's annual "How America Pays for College" report. The survey was conducted by Sallie Mae among 1,000 parents of undergraduate students and 1,000 undergraduate students ages 18 to 24 this spring.

Nearly half of college costs are covered by parental income and savings, while more than a quarter are funded by scholarships and grants, and student loans make up the rest, according to the education lender.

Every year, the U.S. Department of Education distributes approximately $120 billion to assist students in covering the costs of higher education. In addition to federal aid, students may also qualify for financial assistance from their state or college, or through private scholarship programs.

To access federal funds such as loans, work-study, and grants, students must first complete the Free Application for Federal Student Aid (FAFSA).

Many students and their families have been discouraged from completing the new FAFSA application due to problems.

The National College Attainment Network (NCAN) reported that FAFSA submissions decreased by almost 10% nationally in 2024 compared to 2023.

According to Robert Franek, editor-in-chief of The Princeton Review, the decline in financial aid applicants translates into a decrease in college attendance.

Franek stated that with cost being the top college concern among families, it is difficult for students and parents to view a high sticker price and believe that school will be able to assist them.

Private schools typically have more money to spend on offering aid, he stated.

Franek stated that although sticker costs are high, there are schools that are meeting students' and families' demonstrated need, which is a positive aspect.