New Study Reveals Housing Costs Exceed Tuition At Nearly 1 In 4 Colleges

(MENAFN- GetNews) EDsmart Analysis of 1,925 Institutions Shows Geographic "Affordability Lottery" Creates $20,699 Annual Gap Between States

A new analysis by EDsmart reveals that housing and living expenses-not tuition-now drive what students actually pay for college, with nearly one in four institutions charging more for room and board than tuition and fees.

The study of 1,925 four-year Title IV institutions found that 23.2% of colleges (362 of 1,558 reporting institutions) charge higher housing costs than tuition, marking a shift in college affordability where living expenses have become the primary financial barrier.

Key Findings

• Geographic lottery: Students in Rhode Island pay $32,478 annually while those in Wyoming pay $11,779-a $20,699 gap

• Equity gap: Majority-minority institutions charge $1,197 more in net price than majority-white institutions

• Four-year impact: The state-to-state difference totals $82,796 over four years-roughly one year of median U.S. household income

"Tuition gets the headlines, but housing and living costs are what actually determine college affordability today," said Tyson Stevens, EDsmart Research Director. "Students are facing a geographic lottery where their ZIP code can mean the difference between manageable debt and financial hardship."

The analysis reveals that non-tuition costs-including room and board, books and supplies, and other expenses-now comprise the majority of what students actually pay after grants and scholarships. The median net price of $20,133 includes $12,206 for room and board alone, representing 73% of the total cost burden.

State-by-State Disparities

The study identifies significant regional variations in college costs:

• Most affordable states: Wyoming ($11,779), New Mexico ($12,322), Hawaii ($13,884)

• Least affordable states: Rhode Island ($32,478), New Hampshire ($30,123), Connecticut ($29,456)

Equity Concerns

The research highlights an equity gap where institutions serving more low-income students (Pell Grant recipients) charge higher net prices than those serving fewer low-income students. Majority-minority institutions have a median net price of $20,133 compared to $18,936 at majority-white institutions.

Policy Implications

The findings suggest that tuition-focused reforms may miss the mark if they don't address housing and living expenses. The study calls for comprehensive cost-of-attendance reforms that account for the full financial burden students face.

The complete analysis, including detailed state rankings and methodology, is available in the "Hidden College Costs 2025" report.

About the Study

The analysis uses unweighted institution-level medians from College Scorecard data for 1,925 four-year Title IV institutions (Academic Year 2023–24). Net price represents the median annual amount paid by first-time, full-time Title IV recipients after grant and scholarship aid.

This press release is based on the "Hidden College Costs 2025 " report by EDsmart, which provides comprehensive analysis of college affordability trends and geographic disparities in higher education costs.

EDsmart reviews publicly available data to produce independent ranking assessments of various educational programs and student guides and resources. The site is regularly updated by a committed team of writers and researchers who produce college rankings and resources to help prospective and current college students get into, pay for, and thrive at the college of their choice.

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