Big Ten universities tend to increase tuition and fees annually, but it can be hard to tell how much more expensive these schools are actually getting. Capital News Service’s analysis of Big Ten tuition data from 2003-2021 shows that tuition is outpacing inflation, but differences between universities vary considerably.
The 14 universities in the Big Ten span from the mid-Atlantic coastal region to the Midwest. University of Maryland, Rutgers University, Pennsylvania State University, Ohio State University, Indiana University, Purdue University, University of Michigan, Michigan State University, University of Illinois, Northwestern University, University of Iowa, University of Nebraska, University of Wisconsin and University of Minnesota are all in the Big Ten.
Big Ten out-of-state tuition is outpacing inflation, while in-state costs remain level
Tuition increases are common in the Big Ten but since 2003, out-of-state tuition has increased much more rapidly than in-state tuition.
On average, Big Ten in-state tuition costs have remained relatively stagnant for 20 years. Adjusted to 2021 dollars for inflation, the Big Ten average in-state tuition has increased by $1,500 from 2003 to 2021.
On the other hand, out-of-state tuition costs have increased significantly. Adjusted for inflation, the Big Ten average out-of-state tuition increased by nearly $12,000 from 2003 to 2021.
In both 2003 and 2021, the Big Ten average in-state tuition was equivalent to about 19% of the national median household income.
Alternatively, in 2003, the Big Ten average out-of-state tuition equated to about 42% of the national median household income, while in 2021, it was up to about 53%.
Northwestern University’s tuition is greatly outpacing inflation
As a private institution, Northwestern charges all students the same tuition with no distinction between in-state and out-of-state.
Northwestern’s tuition and fees are consistently the highest in the Big Ten by a considerable margin compared to average in-state tuition rates and by a smaller margin compared to average out-of-state tuition rates.
Prices adjusted to 2021 dollars show a nearly $20,000 increase in Northwestern’s tuition from 2003 to 2021, $8,000 more than the Big Ten average out-of-state tuition increase and $18,000 more than the average in-state tuition increase.
In 2003, tuition at Northwestern was equivalent to about 66% of the national median household income. In 2021, tuition equaled 86% of the median household income, a 20% increase.
Northwestern promotes its financial aid and scholarship numbers as offsets to its tuition costs. The average scholarship for a first-year student is $57,000 and 61% of undergraduate students receive financial aid, according to the admissions office.
In a January 2023 financial update signed by Northwestern University President Michael Schill, Provost Kathleen Hagerty and Executive Vice President Craig Johnson, the university noted increases in the number of low-income students enrolled and the number of students who receive financial aid.
“Our investments in financial aid also have promoted equity and access. Over the past year, we exceeded our goal of drawing more than 20% of our undergraduates from Pell-eligible lower-income families,” the statement said.
Purdue University’s frozen tuition makes it an affordable option
In the early 2000s, Purdue’s tuition increases followed the Big Ten average and began to outpace inflation.
Falling median household incomes during the Great Recession decreased the margin between tuition and income, making Purdue more expensive.
To combat this, the university implemented a frozen tuition policy in 2013 to keep tuition and fees at the 2012 level, locking in tuition and fees at around $10,000 for in-state students and $29,000 for out-of-state students.
“In this period of national economic stagnation, it’s time for us to hit the pause button on tuition increases,” then-Purdue University President Mitch Daniels said when he announced the policy in 2013. “Our students and their families deserve a high-value education that they can afford. We will fit our spending to their budgets — not the other way around.”
When adjusted to 2021 dollars, the cost of tuition and fees in 2021 nearly returned to the 2003 level because of the frozen tuition policy, making Purdue one of the most affordable universities in the Big Ten.
In February 2023, the Purdue University Board of Trustees renewed the tuition freeze for the 12th consecutive year, keeping tuition and fees for Purdue students at the 2012 level through the 2024-2025 academic year.
University of Nebraska is consistently one of the most affordable Big Ten schools
While Nebraska’s yearly costs are some of the lowest in the Big Ten, both in-state and out-of-state tuition are slightly outpacing inflation each year.
Adjusted to 2021 dollars, in-state tuition increased by about $3,500 and out-of-state tuition increased by more than $11,000 from 2003 to 2021. That’s $2,000 more than the Big Ten average in-state increase but about the same as the average out-of-state increase.
Even with increasing prices that are outpacing inflation, Nebraska’s tuition costs are well below average in the Big Ten.
In 2003, in-state tuition was about half of the Big Ten average at around $4,000 and out-of-state tuition was more than $7,000 less than the average. Nebraska’s low tuition continued through 2021, when in-state tuition was nearly $4,000 less than the Big Ten average and out-of-state tuition was more than $11,000 less.
On March 3, University of Nebraska President Ted Carter testified to the Nebraska Legislature Appropriations Committee on the university’s budget request for the upcoming academic years.
Carter acknowledged financial challenges facing the university, including 40-year-high inflation, employment costs, upkeep expenses and declining enrollment, but vowed to overcome these obstacles.
“We intend to remain on solid financial footing, even with new challenges ahead,” Carter testified. “We are going to have the tough conversations necessary so we don’t become one of those universities [predicted to] operate in the red.”
Carter also expressed continued commitment to affordability for students at the university.
“We will not balance our budget on the backs of students … accessibility for Nebraskans is a fundamental part of our mission and a key factor in students’ decision to enroll,” Carter said.
University of Maryland follows the Big Ten trend
At Maryland, in-state tuition levels increased slightly since 2003, but out-of-state tuition has outpaced inflation considerably.
Adjusted to 2021 dollars, Maryland’s in-state tuition increased by about $2,000 between 2003 and 2021, about $500 more than the Big Ten average. Its out-of-state tuition increased by more than $15,000 during this period, nearly $3,000 more than the Big Ten average increase.
In January 2023, Maryland implemented the Terrapin Commitment, a need-based financial aid program to help offset the costs of tuition. However, only in-state students are eligible for the program.
“Every Maryland student deserves an equal opportunity to attend the state’s flagship university, and the Terrapin Commitment grant is one more measure we are taking to ensure that a University of Maryland education is affordable to all residents of our state,” University of Maryland President Darryll Pines said in a statement.
For out-of-state students — who have seen much higher tuition increases than in-state students — there is not a program similar to the Terrapin Commitment.
Methodology:
Big Ten university tuition data was compiled from the Common Data Set, a report that includes important figures on universities’ tuition, attendance and admission rates, and from universities’ historical tuition data. The annual Common Data Set includes tuition estimates for the following academic year, meaning final tuition and fees for each academic year can be slightly different from the estimates published in the Common Data Set. A list of sources used in this report can be found here.
National median household income data was accessed from the U.S. Census Bureau.
Figures collected from the Common Data Set and Census Bureau were adjusted to 2021 dollars using the Consumer Price Index inflation calculator.