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College Costs Outpace Inflation

The average four-year private college raised its tuition an average of 5.2 percent last year, close to double the increase at Harvard, according to a College Board study released Monday.

The average increase also outpaced last year's inflation rate of 3.5 percent, continuing a historical trend.

Across the board tuition increases at four-year public, four-year private and two-year private institutions were 5.2 percent, 4.4 percent and 7.0 percent, respectively. Only the 3.4 percent increase in tuition at two-year public institutions was below inflation.

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At Harvard, fees rose by only 2.9 percent.

"Harvard's college costs have been held down," said Associate Dean for Finance Cheryl Hoffman. [HUH?} "They are less than the Consumer Price Index and less than inflation while are scholarship awards are increasing at a higher rate."

Hoffman said that rising operating costs--including technology upgrades--are a significant reason why tuition costs have risen throughout the higher education industry.

"Renovations, maintenance and renewal are a huge part of the cost," she said. "The labor market, which has been tight in many parts of the nation, is another factor. Other colleges may not have as strong as an endowment as Harvard."

Other factors, including renovations, maintenance, and rising wages due to a tight labor market have contributed to the rise at many schools.

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