It’s no secret that tuition and student loan debt in the United States has held back millions from earning college degrees that advance their careers. There have been well-meaning efforts to address the student debt crisis in both public and private institutions. However, despite some reprieve for students attending public schools, the negative impact of decades of runaway tuition increases still looms large.
This leaves higher education leaders with a remarkable puzzle to solve – how do we make quality college education affordable? American College of Education (ACE) employs a cost-effective model that allows 86% of students to graduate without debt* and achieve career advancement through employer satisfaction and salary increases. The proof is in the numbers, and this unique framework breaks the trend of impossible tuition costs.
Understanding the High Cost of College
Historical Trends in College Tuition
Tuition has trended upward for decades, increasing annually since the eighties. More recently, in the past 20 years, public institutions have increased tuition and fees 141% (7% average increase annually). This reflects the astonishing rise of tuition from $3,501 in 2000 to $9,750 in 2022. Furthermore, student loan interest and loss of income can combine to become a $500,000 investment in a bachelor’s degree. When tuition reaches such extremes, higher education in public and private schools becomes inaccessible to millions.
Factors Contributing to Rising College Costs
To generate affordability models, we must understand the culprits behind tuition increases so we can adjust for inflation.
- Administrative bloat and increased staffing: Higher education has increased non-instructional spending, including administrative and non-teaching staff, for the past several decades. Overspending in these areas decreases funds to hire qualified faculty.
- Expansion of campus facilities and amenities: Many institutions overspend on unnecessary facility updates or amenities that don’t contribute to academic success. While the student experience is important, teaching and learning is critical to student success.
- Reduction in state funding for public institutions: When state funds are decreased, higher education leaders are forced to find financial aid from other sources at the start of each fiscal school year. Unfortunately, it often results in increased student tuition and fees.
- Increased demand for higher education: Higher education is a common pathway to career readiness and advancement. However, increased demand results in a growing need for qualified faculty and staff who desire appropriate pay scales to support student success and operational processes.
Impact on Students and Families
The student loan debt crisis continues to be a hot topic in today’s higher education landscape. American students owe approximately $1.77 trillion in student loans. Such high balances are among the top contributors to total household debt in the U.S. These statistics alone reflect the severity of how student debt negatively impacts students and pose a strong argument for why colleges should focus on lowering costs. It’s a huge disservice to aspiring college students to have to choose between the cost of living and advancing their careers.
ACE’s Approach to Affordable Quality Education
ACE was founded to offer a quality, cost-effective alternative to unaffordable traditional colleges. With pricing significantly lower than the national average cost of tuition,* ACE maintains low costs through online program delivery and a focus on essential services. While we’re eligible, we choose not to accept Title IV funding, which allows us to offer programs at a lower cost. The college uniquely prioritizes affordability and student return on investment, as every dollar students invest in an ACE program results in $19.20 in future earnings for a 120.7% annual return.
ACE’s Tuition and Fee Transparency
As higher education institutions, it’s our job to be transparent about how much a degree will cost, so that students can make the best decision for their needs. It’s paramount that institutions make this information readily available so a student isn’t blindsided by hidden fees tucked behind an inaccurate sticker price.
On our website, ACE publicizes total costs and the tuition and fee breakdowns that generate it, outlining the cost per credit hour and fee calculations based on credit hour counts. This information provides students with a simple total cost of attendance summary for every program. For example:
Strategies Employed by ACE to Keep Costs Low
Affordability is one of our highest priorities at ACE, and we can offer our programs at industry-low costs by focusing on what matters most to student success.
- Online program delivery. Our fully virtual workforce and program portfolio allow us to focus our funding on the academic experience and flexibility that students deserve. We don’t have to pay for parking, facility management or athletics, and we pass those savings along to our students.
- Essential academic services over luxury amenities. Many traditional colleges use their resources to amplify the college experience found in state-of-the-art dormitories or extravagant athletic facilities that seldom enhance academic success. ACE prioritizes funding toward essential instruction and academic services that support degree conferral.
Student Outcomes and Satisfaction at ACE
Successful affordability models make a quality college education more accessible, and their impact contributes to unmatched outcomes. ACE boasts an 85% graduation rate and a 96% employer satisfaction rate. When we see such great results, we know it emerges from a focus on affordability and return on investment for a quality education.
Frequently Asked Questions (FAQs)
Why is the average cost of college so high in the U.S.?
Several factors contribute to increased costs for colleges and universities. These include but are not limited to administrative expenses, campus facility expansions and decreased state funding. Cost may also vary for in-state versus out-of-state students.
How does ACE maintain affordable tuition costs?
ACE maintains low tuition costs through fully online program delivery and a focus on essential services.
Is the quality of education at ACE compromised due to lower costs?
No. Quality comes first in everything we do. ACE is accredited by the Higher Learning Commission, the highest level of accreditation possible. We invest our resources in industry-leading faculty and relevant content, so our graduates are immediately ready for career success.
Are there additional fees at ACE apart from tuition?
ACE tuition costs, including minimal fees, are transparently shared from the start.
How does ACE’s cost of attendance compare to national averages?
ACE’s total cost of attendance is significantly lower than the national average for both public and private institutions.*
*Source: Internal Research Conducted March 2025
