Keystone Today

Recent statistics from Bankrate.com have shown that the average annual rate of college tuition inflation is at 8%, and costs of public U.S. colleges and universities have nearly tripled since 1980.

Bankrate also reported that during the 2021-22 academic year, the average annual cost of tuition and fees at a public four-year college was $10,740 for in-state students and $27,560 for out-of-staters. 

The recent student loan forgiveness program from President Joe Biden will cancel $10,000 of federal student loan debt for borrowers making less than $125,000 per year, a recent FOX News report said. The program has come under fire from some, including former CIA Director and Secretary of State Mike Pompeo, who feels it will only create a burden for the future.

"Joe Biden isn't forgiving student loan debt, he's subsidizing college tuition," Pompeo said on Twitter recently. "This one-time giveaway is only going to raise tuition for future generations." 

Borrowers who attended college on Pell grants will have forgiveness of up to $20,000 of student loan debt. Biden also extended pandemic-era payment freezes through the end of the year.

From 1980-81 to 2020-21, the cost of attending a four-year college with tuition, fees, and room and board, has gone from $10,631 to $29,033 annually in the U.S.; data from the National Center for Education Statistics showed. These numbers are adjusted for inflation.

As of January 2022, the in-state tuition and fees for a public four-year university in the commonwealth of Pennsylvania increased 5.05% last year, an Education Data Initiative report said. Out-of-stater tuition and fees increased by 5.94%. Additionally, the average cost of room and board increased by 9.98%.

The Education Data Initiative also reported that college tuition has gone up 747.8% since 1963, adjusting for inflation.

Several experts noted that Biden’s plan for student loan forgiveness will cause an increase in college tuition prices and add to inflation.

"Students will likely feel liberated to borrow more money on the assumption of future loan forgiveness, and universities will take advantage of the additional borrowing by raising tuition," Brian Riedl; a senior fellow in budget, tax and economic policy at the Manhattan Institute; told FOX Business. "This is pretty similar to the fact that historically 60% of all student aid increases have been captured with tuition hikes, and this will be treated like an increase in student aid moving forward, which suggests that 60% will be countered by tuition hikes."

Biden’s cancellation plan is expected to cost from $330 to $390 billion, and his full student-debt plan will cost $440 to $600 billion; a recent report from the Committee for a Responsible Federal Budget said. This plan is expected to be a short-term fix. While the committee conceded that it will temporarily clear nearly a third of the student debt portfolio, it added that the sum of student debt will return to its current level in five and a half years—by 2028.