The cost of running a college jumped 5.2% in 2022
It was the biggest increase in more than 20 years.
MORE IN THIS SECTION
Since 2001, when the Higher Education Price Index (HEPI) hit 6%, the inflation rate hasn't been this high, as stated by the Higher Ed Dive.
According to data from Commonfund, colleges’ expenses reached 5.2% in the 2022 fiscal year. When comparing it to 2021, when the inflation rate was 2.7%, it’s possible to see a significant increase.
Since the 1980s, the United States hadn’t experienced such dramatic inflation. For the first time in almost a decade, the Consumer Price Index (CPI) exceeded the HEPI — something that isn’t considered normal according to Commonfund. In 2022, CIP outpaced HEPI by reaching a high of 7.2%.
However, the last time it happened, the difference between the two was only 0.1%, in 2013.
Higher Ed Dive stated that HEPI calculates the inflation rate for higher education based on salaries, cost of utilities, supplies, and materials, as well as other services.
In 2022, utilities led the sector’s cost increase with a 43.1% year-over-year jump, followed by supplies and materials, which rose 21.5%. In 2022, utilities dramatically deviated from a five-year average increase of only 9%. The cost of supplies and materials saw a similar jump over the five-year average increase of 6%, stated Higher Ed Dive.
Such an increase had impacts on students' lives by, for example, the increase of tuition in many colleges and universities. However, it didn't offset the difference between the rise in college costs for the institutions.
Besides students, faculties were also affected. Their salaries rose the least, only 2.1%. The lack of significant raises led the wages of full-time faculty members to decrease by 5% in 2021-22 after adjusting for inflation, according to a separate report from the American Association of University Professors.
To learn more, click here.
LEAVE A COMMENT:
Join the discussion! Leave a comment.