College tuition costs on the rise this fall

Parents with college-bound kids may get a Halloween-inspired spook that will leave their hair standing on end. Tuition is climbing faster than financial aid. Now, that's scary.

According to a report released by the College Board on Tuesday, Oct. 20, tuition and fees to private four-year universities rose 4.4 percent to $26,273 while charges to public four-year universities spiked 6 percent for both in-state and out-of-state students.

In contrast, financial aid isn't keeping up with the spike. Grant money only grew 4.7 percent during the 2008-2009 academic year.

Over the past decade, college costs increased on average by 4.9 percent at public colleges and 2.6 percent at private universities. The survey suggests that the swell in fees is a direct result of the economic downturn with private school endowments plummeting and state funding for public schools dropping 5.7 percent per student this year.

"Every sector of the American economy is under stress and higher education is no exception," says Terry Hartle, senior vice president of the American Council on Education. "It's regrettable, and it's yet another piece of disappointing economic news that affects families.”

Click here for the lowdown.