Educational Expense Trends

The latest inflation data gives another grim milestone for UK universities – the real value of the full time undergraduate fee cap has fallen below £5,900 in 2012 pounds for the first time, way below the £9,000 level in 2012 and taking the sector into increasingly uncharted waters for funding. In 2024 money that means a shortfall against 2012 levels of around £4,900 for each student for each year of teaching– so needing to deliver a student to graduation for £15,000 less (in £2024) cost than a decade ago. This is already in mission impossible territory, but for university leaders the true situation is harder still. This is because they need financial plans for the future, and with no visibility of a funding solution they are duty bound to act on the basis of things getting worse. In our analysis historical precedents that without intervention real fee values dipping to £5,500 in a couple of years or so. It is difficult to estimate comparable figures for per-student funding before 2012 but our analysis suggest that the nadir, in the late 1990s, was the equivalent of a fee cap of around £5,600 (in £2012). And that low point was very brief, with values already recovering ahead of the big jump in 2012. This is increasingly leading to cutting the cost base now, often meaning staff , with worries the resulting damage may be hard to recover as Phil Baty notes here https://lnkd.in/e28WiC2a. In the accompanying Times Higher Education article (https://lnkd.in/ejiXxJbT) John Rushforth notes university leaders often have little choice other than to make least-worse cuts now because the fundamental problem is prices capped below economic cost of provision rather than a blip that is going to go away.

Canada raised student financial requirements by 11% overnight. Here's what this means for families planning their education investment. Canada just made studying there $2,260 more expensive for international students, and most families aren't prepared for this change. Immigration, Refugees and Citizenship Canada (IRCC) announced that starting September 1, 2025, international students must prove they have $22,895 in living expenses, up from $20,635. It's an 11% increase that will fundamentally change who can afford Canadian education. Here's what this really means: 📌For current applicants: If you're applying before September 1st, you're still under the old requirement. Submit everything before this deadline if possible. 📌For families with multiple students: A family of four now needs $42,543 just for living expenses, not including tuition, which can be $30,000-$50,000 per year per student. 📌For financial planning: Canadian banks accept various proof of funds - GICs, bank statements, education loans, or scholarship letters. Start preparing these documents now. Canada wants international students (they contribute $22 billion annually to the economy), but keeps raising financial barriers. This creates a two-tier system where only wealthy families can access Canadian education, despite Canada's immigration goals. For students still planning to study in Canada, here are my two cents:  → Start saving immediately - don't wait until application time  → Consider provinces with lower living costs outside major cities  → Research scholarship opportunities early in your planning  → Look into education loans from participating banks  → Factor this into your total education budget planning Planning ahead will help you avoid financial stress later on. Does this change affect your education plans? 

Make it make sense. The cost of tuition + room + board is 2.5X higher today than in 1980, all adjusted for inflation.The quality of education isn’t higher. The accommodations aren’t better. So why the dramatic inflation-adjusted cost of attending college? I see three drivers: 1- ADMINISTRATION BLOAT This one is easy to track. There are far more administrators in collegiate environments than there were 45 years ago. Let’s call it “non-instructor roles to student ratio. Also, increasingly, professors are more focused on obtaining research grants that the university takes a massive chunk of. This is leaving graduate students to teach a much larger percentage of classes than 45 years ago. So arguably, the quality of instruction is actually lower. 2- FRINGE STUDIES SUBSIDIZATION There are WAY more majors and fields of study to pick from today than 45 years ago. Accommodating more small fields with fewer interested student requires that the larger fields of study subsidize the smaller ones. I’m all for expanding areas of research and documenting knowledge. However, they need to find a different way to cover the cost of it rather than shoving it into tuition costs that end up being carried by all students. 3- REAL ESTATE COSTS While the quality of accommodations isn’t spectacularly different, the cost of housing has far exceeded the growth of inflation generally. Apartments, multi family units, and homes around universities have grown in value far faster than average. I also have a feeling that the modern day requirement for accommodations that be higher. eg having your own room vs sharing a room, which would also push up costs. College isn’t a sham quite yet, but it’s getting close. The math isn’t mathing very well.

💸 How Students Pay for College Is Changing—And That Matters More Than Ever A decade of #IPEDS data shows a clear shift in how full-time, first-time students are #financing their #education —and it’s reshaping the student aid landscape. Let's take a look at financial aid packaging: 📉 Fewer students are relying on loans, federal grants are trending downward, and… 📈 Institutional aid is doing more of the heavy lifting than ever before, helping even more students make a college education dream a reality. Let’s break it down: 💲Federal grants dropped from 1.4 million students in 2021–22 to 1.1 million in 2022–23—a 21% decline in just one year. 💲Meanwhile, institutional grants and scholarships increased from 1.25 million to 1.31 million students in that same period—now making up the largest share of students’ financial aid packages. 💲Loans to students continue their downward trend—evidence of growing borrower caution and changing aid strategies. 💲State and local aid remains relatively modest. As we approach the #enrollment #cliff and a more #diverse, #financially #vulnerable student population, these shifts are more than statistical—they’re #strategic. 📊 This is why continued investment in federal data (like IPEDS) and a clear-eyed focus on evolving student demographics is mission-critical for colleges, policymakers, and advocates alike. I was able to generate this chart and customize it in less than 30 seconds using the National Center for Education Statistics (NCES) Trend Generator. #HigherEd #IPEDS #FinancialAid #InstitutionalGrants #CollegeAffordability #EnrollmentTrends #PellGrants #StudentLoans #PrivateColleges #InstitutionalResearch #DemographicCliff #DataDriven

Since 1980, the average cost of college tuition has climbed over 300%, even after inflation (The College Board). Confidence in higher education has dropped from 57% to 36% (Gallup). A new The Chronicle of Higher Education–CollegeVine study shows that while most university leaders still view higher ed as a social and economic engine, they also see a widening gap between what families pay, what students learn, and what the workforce demands. The good news? Innovation is already happening. The The College-in-3 Exchange now unites nearly 60 institutions designing three-year degrees that reduce cost and time to completion. Nexford University offers a $250-per-course, AI-integrated BBA built around real-world projects with companies like Red Bull and Bloomberg. In my latest Forbes article, I explore how cost, confidence, and AI are converging to redefine higher education’s value—and how the institutions leading this change are designing degrees worthy of renewed public trust. 🔗 https://lnkd.in/exe2Th_U #HigherEd #AIinEducation #Leadership #CollegeCosts #WorkforceDevelopment #CollegeIn3 #Forbes

30% fee hike. If this isn’t theft, what is? Started having conversations about school for my daughter. Shocked to hear what’s going on. In Bangalore, parents are now paying ₹2.1 lakh for 3rd standard. That’s not an international school. That’s regular CBSE. One parent called out the ₹2L fee for Class 3, saying even an engineering degree costs less.* And it’s not a one-off. - Fee hikes: 10–30% every year** - Middle-class salary growth: Just 0.4% CAGR over the last decade - Education expenses: Now 19% of total household income - Annual school cost for Class 4 in Ahmedabad: ₹1.8L Forget saving for college. Parents are now taking EMIs for nursery. The official data says education inflation is just 4% But try telling that to the mom comparing 5 school brochures or the dad doing mental math between rent and bus fees. This isn’t just inflation. It’s erosion. Of savings, sanity, and even family dreams. We used to say, “education is the great equalizer.” Now, it’s the biggest monthly liability. And if you’re a builder, founder, or policymaker in fintech, this is your user. Struggling quietly, cutting corners, still showing up. Find ways to make them win.

My daughter is going to turn 3 next year, and I’m terrified. Here’s why. A school in Hyderabad is charging ₹2.51L per year for teaching ABCD. The fees go even higher for older classes. I feel this is daylight robbery. Look at these stats: → Nursery fees in major cities: ₹60,000 to ₹2.5L annually. → Avg. urban monthly salary: ₹21,647 → One year's nursery fee = an entire annual salary! While general inflation sits at 5-6%, education costs are exploding at 8-12% every year in India. Private schools have become profit factories, and education has become a luxury product. And here's what hurts the most → You're not even guaranteed quality. - India ranks 107th out of 121 countries in the global education index. - Student-teacher ratio: 26:1 vs global average of 15:1. - Most schools spend <5% budget on teaching materials. For ₹2.5 lakhs, my child would get overcrowded classrooms, overworked teachers, and an outdated curriculum that hasn't changed much since the 2010s. Affordable and quality education in the forms of advanced AI tutoring, open schooling, and homeschooling might become mainstream in the future. But until then, I doubt if we have a solution. Do you feel the same? #educationcrisis #privateschools