The Impacts of State Control Policies on College Tuition Increase

Abstract

This study examined state efforts to control tuition increases over the past 10 years. Using data from 50 states and 540 public 4-year universities and colleges, we examined average tuition increases in dollar amount and percentage of change by the type of state tuition control policy and by the authority for tuition-setting power. The state policy efforts considered for this study include setting tuition caps, providing incentives, and linking tuition policy to financial aid policy. Findings revealed that two state policies (i.e., linking tuition to financial aid and providing incentives to limit the tuition increase) are effective in controlling tuition. Tuition was more likely to increase when individual institutions have tuition-setting authority. This study also reveals that a state’s tuition cap policy can adversely affect tuition control.