Since 2008, Michael Berlau has served as a college solutions specialist with College Funding and Planning in Overland Park, Kansas. In this role, Michael Berlau helps families to identify resources that can reduce the out-of-pocket cost of a college education.
One of the main differences between public and private colleges is the source from which each institution draws its funding. Public universities often receive government funding, which subsidizes costs such as faculty salaries and results in lower tuition. Private institutions rely entirely on donations and tuition to cover costs, which means that students tend to pay higher fees.
A 2011 College Board report revealed that in-state students at a public institution paid slightly more than $17,000. The cost for out-of-state students at the same schools hovered around $24,000, while total tuition and fees for private university students totaled more than $38,500.
There are, however, a number of factors that help to close this gap. Some public universities offer tuition reciprocity, meaning that students from certain states can pay the in-state rate for those institutions. Meanwhile, at private institutions, grants and scholarships mean that approximately 42 to 48 percent of students pay only about half the total price of the college.
