Room and Board Are Making College Less Affordable

Colleges and universities across California are welcoming a new class of freshmen, bringing the reality of the total cost of college home for families paying tuition, room, and board for the first time. Today, 69% of parents worry about being able to afford the cost of their children earning a bachelor's degree, according to a recent PPIC survey, an understandable concern with in-state tuition on the rise at California State University (CSU) and University of California (UC).

CSU has approved a plan that will raise tuition by 6% annually for five years. The University of California's Tuition Stability Plan ties annual increases to inflation for each incoming undergraduate class; tuition then stays the same until students graduate-for up to six years. California's financial aid programs, which are tied to tuition, have kept tuition free for over half of students at CSU and UC over the past decade.

However, while the state's financial aid programs and federal Pell grants reduce the tuition burden, they do not fund the total cost of college, which includes books, food and housing, transportation, and other costs. Even with access to financial aid, families earning under $30,000 per year must still pay about one quarter of their annual income to cover the total cost of college at CSU or a third of their income for UC.

Housing costs are a significant burden for most students. As of 2023 California rent was 50% higher than the national median. In addition, inflationary pressure on food and books, as well as rising loan interest rates, are pushing up college costs across income levels. In fact, for CSU and UC students who are California residents, food and housing together cost more, on average, than tuition, according to our analysis of National Center for Education Statistics data.

In 2023-24, tuition and fees for CSU and UC resident students were $7,650 and $14,579, respectively. Food and housing costs were $18,198 and $15,149 for students living off campus but not with family. At CSU, 48% of students receiving grant aid live off campus with family and save about half of the costs of living independently. At UC, 80% of aid recipients live on campus where costs are similar to off campus independent living.

How is California helping students manage? The state has introduced policies and programs to help students address high food and housing costs. For example, CalFresh is a key safety net program available to help certain low-income students afford the cost of food. In addition, in the 2022-23 budget agreement, the legislature amended the Middle Class Scholarship program, allocating funds that link financial aid awards to the total cost of college attendance rather than to tuition costs only. The policy also expanded program eligibility to lower-income students whose tuition is covered by Cal Grants or other financial aid programs, leading to a sixfold increase in estimated recipients-from 60,000 to about 360,000-and providing students with an estimated additional $1,000 to $5,000 to support costs beyond tuition.

However, a drop in state revenues has led the state to recalibrate the awards formula for other support programs; in particular, the Middle Class Scholarship program for the 2025-26 budget is set at 35% of costs beyond tuition. As the state faces continued economic uncertainty, possible federal cuts to funding for its public universities, and a lack of available state bond funding for CSU and UC, costs may continue to rise as students and families navigate paying for college.