U.S. College Tuition Hikes in 2025-26
We have been reading about the federal cuts imposed on universities by the Trump administration. Universities are unanimously blaming the termination of grants, resulting in a financial crisis, which has led many to make some tough decisions. For example, Cornell has announced a pause in hiring while it reviews its “programs and headcounts.” Consider it in the context of the university receiving $900 million yearly from student fees, and its endowment is valued at approximately $10.7 billion as of 2024, returning about 10% every year. This makes little sense. The out-of-state tuition fee charged by Cornell University in 2025 is $71,266 and $48,010 for in-state students, an increase of nearly 4%.
Yet another university, Duke University, has had its tuition fee jump by nearly 5% to $92,042. In the past two decades, Duke’s fee structure has witnessed a 123% upward trajectory, while its endowment has steadily increased over time to about $5 billion. Universities defend soaring tuition by citing operating costs and financial aid. But why crank up student charges when the endowment coffers are bursting?
Take the example of Boston College. From $49,324 in 2015, BC’s fee has increased to $70,702 (2025), which is an increase of 43.34% over the past 10 years. The graduate school tuition & fees have risen from $26,262 (year 2015) to $37,520 (year 2025). While the average increase of Massachusetts’s rate is 13.54%, BC’s increase rate is higher than the average increase rate of 29.50%. In 2022, BC’s endowment stood at $3.7 billion. According to The Heights, BC no longer discloses its investment portfolio.
Not too far behind are some of the public universities, such as the University of Michigan and Minnesota, which are raising costs by as much as 7.5% for some students while sitting on a nearly $18 billion endowment. The university is blaming “budgetary impacts of federal actions” and “economic and legislative uncertainty,” according to a recent announcement.
Notably, the Trump administration has cut grants and contracts to universities, specifically targeting courses that promote diversity, equity, and inclusion (DEI) topics or non-compliance with federal civil rights laws.
The pressing question is, how do these institutions use their wealth? Universities are investing in private equity, fossil fuels, and hedge funds, which is the primary reason that they’re under fire from policymakers. With public awareness rising as well, Yale’s recent plan to sell off $6 billion in private equity to boost liquidity and manage political and economic risks has come under scrutiny. Yale University to sell billions in private equity amid challenges. Since these investments are generating big profits, they give rise to ethical and practical concerns, especially if universities keep raising tuition or underpaying staff despite having strong investment returns.
In an era of global uncertainties, education must remain accessible. Raising tuition fees should be the last resort for universities entrusted with shaping the next generation of innovators and job creators. Wherever possible, universities must lower tuition costs, improve student services and experiences, and pay adjunct faculty and campus workers fairly.
