1440 Explores The Real Price of College
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Mar 12, 2026 Dr. Sandy Baum, economist and senior fellow at the Urban Institute who studies college costs and student aid. She traces higher education’s postwar expansion and federal loan programs. The conversation compares public and private funding, explains why sticker prices rose, and who actually pays versus who carries the biggest debts.
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Public Versus Private Through A Personal Lens
- Sony Kassam contrasts his public undergrad at University of Illinois with grad school at private Northwestern to illustrate different funding models.
- University of Illinois receives state subsidies so in-state tuition (~$17,000) is lower, while Northwestern's sticker is ~$67,000 before room and board.
Sticker Prices Mask Real Cost Drivers
- Sticker prices hide underlying budget pressures driving tuition increases.
- Sandy Baum points to rising labor, expanded student services, growing health-care costs, and reduced state funding as main causes.
Net Price Not Sticker Price Determines Cost
- Net price matters more than sticker price because grants and scholarships lower what most students pay.
- Baum notes average private students pay ~one-third of sticker and public students pay under half, so net price rose much slower than sticker price.