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There is more to college costs than tuition and fees, and neither are the primary drivers of rising college costs, according to a new research report from the Federal Reserve Bank of New York.
In addition to those out-of-pocket costs — and the costs of room and board, which are not included in the Fed report — are the opportunity costs that college students forfeit when they attend classes instead of collecting wages. Those costs have been rising steadily since 2012 along with rising wages in a tightening labor market.
"It turns out that the opportunity cost of college is much more substantial than out-of-pocket costs, though both have been climbing in recent years," write the Fed researchers. "Students pursuing a bachelor's degree could expect to forgo more than $120,000 in wages, which is almost four times net tuition costs."
