Lawmakers take aim at college costs

— -- Larry Gazdick of Ashburn, Va., doesn't consider himself wealthy. But four years ago, when his stepson, Bryan Ingraham, applied for financial aid for college, he qualified for nothing but federal student loans. Gazdick had been saddled with debt after college, and he didn't want Bryan to endure the same fate. So Gazdick paid the full cost of Bryan's education — about $90,000, or $2,500 a month. To do so, Gazdick worked seven days a week for more than four years.

Bryan graduated this year from West Virginia University with a degree in business and economics. His parents are relieved that he'll start his life debt-free. But Gazdick is still stunned by how much Bryan's college degree cost.

"It was ridiculously expensive," he says.

Critics have complained for years about the galloping cost of college. But now, Democrats and Republicans are pushing measures that would go further than ever before to control college costs. Some proposals would reward schools that control their costs and cast an unflattering spotlight on those that don't. Others would require schools with multibillion endowments to use more of that money to lower tuition.

Behind the push is frustration with the relentless surge in costs. The average in-state tuition and fees at a four-year public university rose 6.6% to $6,185 this academic year, according to the College Board. Average total costs, which include room and board, rose 5.9% to $13,589. In the past five years, the average total cost of attending an in-state public school is up 22%, even after taking inflation into account.

The cost of attending an out-of-state or private school has also soared. Anne and Frank Barretta of Bergen County, N.J., are spending about $27,000 a year to send their daughter, Nicole, to the University of South Carolina. While that's hardly a bargain, Anne says, "It's considerably less than what some other parents might be paying for private schools."

Anne teaches at a local college; Frank is an executive for an Internet procurement company. The Barrettas didn't qualify for any financial aid, other than federal student loans, which they decided against. They've been saving for years, which helps.

Still, "It's a large payment, and it's always on our minds," Anne says. "We're trying to do the best we can."

College Board officials say that most families don't pay the published tuition rates, because most students receive financial aid. But increasingly, that aid is coming in the form of federal loans that must be repaid, with interest. And the average net price — the average cost of tuition, after grants and tax benefits — has been rising faster than inflation and family incomes. Even when you include financial aid, about 40% of American families would have to spend at least a quarter of their income to pay for a traditional college education, according to the Education Department.