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College Costs Outpace Inflation

"All colleges are in a spending race to attract students," he said.

In the public sector, he said, reduced public support and state funding for higher education lead to large fee hikes.

"The tuition increases for public colleges are an attempt to make up for the failure of state appropriations to allow for growth and still remain competitive," Ehrenberg said.

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Despite the constant tuition rises, College Board President Gaston Caperton said in a press release that most Americans should still be able to meet the financial demands of a college education.

Amid rising tuition costs, there have been increases in the amount of financial aid offered to students in the form of loans and grants.

According to the College Board, a record $68 billion in aid was available last year.

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