College tuition is rising – a lot.  Each year, college tuition is rising an average of about 6%, or about $700, for public universities.  However, despite rising tuition, financial aid programs have been reducing the amount of money they are distributing to students in need.  For example, Pell grants, the nation’s biggest need-based financial-aid program, reduced financial aid by an average of $120 per student. The nation's saved taxpayers $900 million by trimming its average award to $2,474. Colleges also reduced the percentage of financial aid they dedicated solely to needy students and increased the percentage for scholarships for students with good grades or test scores, the College Board reported.

Not only do the rising costs of college outpace financial aid, but also wages and inflation rates. The sticker price for an academic year at a typical public university is $16,400: $5,836 for tuition and fees, almost $7,000 for room and board, and an additional $3,500 or so for books, travel, and entertainment, the College Board estimated. About half of students get scholarships or tax breaks to reduce their out-of-pocket costs, however, bringing the average net price paid to about $13,000.

It is suggested that if the prices of college keep rising as they are, students who don't receive any grants will most likely pay more than $115,000 to reach graduation day. Those who do receive scholarships or other assistance (which are of a decreasing number) will most likely pay about $87,000. Thirty years ago, when the total sticker price of a year at a public university ran less than $3,000 and students took less time to graduate, the total cost of a degree was closer to $12,000.

The best bet for finding affordable higher education may be found in local community colleges and two-year schools.  In California and other such states with high numbers of community colleges, community college tuition actually dropped. On average, tuition at the nation's commuter schools rose an average of only 4.1% this year, to $2,300. That means even students who don't receive any financial aid but live at home and attend a community college could finish their freshman and sophomore years for as little as $8,000, including textbooks and transportation to and from classes, estimated the College Board.