1985 vs. Today: The New Price of Public College Tuition
For generations, a college degree has been viewed as an important path to achieving the American Dream. However, with today's rising costs, many are questioning whether a diploma is still worth the investment.
According to a 2025 Gallup poll, while 24% say it's "not too important," a mere 35% say it's still "very important." Furthermore, per the Education Data Initiative, the average public four-year institution charged $10,340 a year in tuition and fees for in-state students during the 2025-26 academic year — that's significantly more than four decades ago when the average cost was just $1,318.
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Ahead, we'll explore how the cost of a year at a public four-year college has changed since 1985, as well as how much of that increase can be attributed to inflation.
The Cost of College Has Increased 684%
Public colleges have generally been a more affordable option than private colleges, but over the past 40 years, the price has climbed $9,022, or about 684%. Put another way, the average in-state tuition and fees at a public four-year college are about 7.8 times what they were in 1985-86.
Average Public 4-Year Tuition and Fees | Amount |
1985-86 | $1,318 |
2025-26 | $10,340 |
Dollar increase | $9,022 |
Percentage increase | 684% |
Inflation Explains Some, but Not All, of the Increase
College tuition has increased faster than the overall cost of goods and services, USA Today reported.
Tuition and Fees
To get a better sense of how much the cost of college has actually increased, consider that the $1,318 average tuition and fees in 1985-86 would be equivalent to about $3,944 in 2025 dollars (after adjusting for inflation using the annual-average CPI-U from the Bureau of Labor Statistics).
Subtract that from 2025's annual $10,340 tuition costs and it leaves around a $6,396 difference, or roughly 162% higher costs.
College Enrollment Is Expected To Decline
The price of college isn’t the only thing that’s changed since the 1980s. Universities are also facing a demographic challenge. The number of U.S. high school graduates is expected to peak and then decline, putting additional pressure on college enrollment, according to the Western Interstate Commission for Higher Education.
The number of high school graduates is projected to decline by 13% over the next 15 years, WICHE predicted. Declining birth rates are a major reason for the drop, meaning fewer Americans will reach traditional college age in the coming years.
Student Loan Debt Is Soaring
Debt is another thing making Americans think twice about college. About 43 million Americans have federal student loans, representing roughly $1.7 trillion in outstanding debt, according to SoFi. Meanwhile, 48% of respondents said college wasn't worth the cost in a 2026 Credible survey.
As college costs continue to rise, Americans are increasingly weighing the potential financial benefits of a degree against the cost of getting one, with some opting for trade schools or career paths that don't require a degree.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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