A majority of Californians say affordability is a problem in the state’s public colleges and universities, according to the PPIC Statewide Survey. In addition, three-quarters of residents in the survey agree that the price of college prevents students who are qualified and motivated from going to college. Not surprisingly, state leaders are exploring new strategies to help students and families better cope with college costs. Most current approaches, such as state and institutional financial aid, focus primarily on tuition relief. This makes sense, as tuition more than doubled at California universities from 2006 to 2012—and is on the rise again.
However, housing costs also play a significant role in the total cost of attending college. Californians are well aware of the issue: 85% of residents in the PPIC survey say colleges and universities should do more to make sure that all students have affordable housing options. Indeed, even with the rapid increases in tuition, living costs for many students exceed tuition at California’s public institutions—the state’s community colleges, California State University (CSU), and the University of California (UC). Average room and board costs also differ substantially across the three systems, from $8,509 per year at the community colleges to $13,774 at UC.
These differences in costs are related to whether students live on campus, off campus on their own, or off campus with family. Estimated average costs of housing and food for students living on campus top $13,000 per year, and those living off campus pay an average of $10,000 to $13,000 in room and board. The costs associated with living with family are not estimated in the available federal data, but most college websites suggest these costs range from $5,000 to $6,000—about half the cost of living on or off campus.
Students’ housing choices also partially depend on where they go to school. Only nine cities in California have UC campuses (excluding UCSF which only enrolls graduate students), and most UC freshmen live on campus in their first year. Historically, the 113 community colleges and 23 CSU campuses have been seen as local and low-cost options. Indeed, both systems show about 30% or more of freshmen living with their families, which helps keep average room and board costs lower than at UC. But it is worth noting that the share of CSU freshmen living on campus may grow. More dorms are being built on CSU campuses as administrators see on-campus housing as a strategy to increase graduation rates. Data on students’ living arrangements are based on institutional reporting on freshmen who receive some sort of federal financial aid, which includes more than 60% of students at most institutions.
As state leaders reexamine the goals in the 1960 Master Plan for Higher Education and consider changes to financial aid, they should take into account the role that living costs play in the total cost of education.
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Today, when many policy preferences are often divided along party lines, there is partisan consensus on this issue: at least 70% of Californians across parties say they would be unwilling to increase student fees to fund higher education. Indeed, less than a third of Californians across all regions and demographic groups say they would be willing to increase student fees.
Another way to increase funding for California’s public colleges and universities would be to admit more out-of-state students, who pay higher tuition. Californians are somewhat divided on this issue, with half saying they would not be willing to admit more out-of-state students, while 46% say they would be willing to do so. However, only 21% of Californians support admitting more out-of-state students if this would mean admitting fewer in-state students. This view holds across party lines: only one in four Republicans (25%), and even fewer independents (21%) and Democrats (16%), are willing to admit more out-of-state students if this would mean admitting fewer in-state students. UC has proposed increasing systemwide out-of-state tuition and fees by over $1,600 to almost $40,000.
The most recent cost data is from 2013‒14—this was the first year of the Middle Class Scholarship program. Average awards that year were $1,100 or less, and once the program was fully implemented awards were slated to range from $1,300 and $5,400 at UC and $700 and $2,700 at CSU, depending on the income and assets of eligible students and on the number of applicants. 
California’s financial aid program, Cal Grants, provides grants (funding that students do not have to pay back) for full tuition for the state’s lowest-income students, as well money toward books and living expenses for some of them. Through a combination of Cal Grants, federal aid, and institutional aid, UC’s Blue and Gold Opportunity plan guarantees free tuition for any family making $80,000 a year or less. CSU has a similar plan, the State University Grant, which bases the amount a family will pay on a number of factors. On average, students who receive financial aid pay no tuition at UC or CSU if their families make $75,000 or less.
Raising the cap to $110,000—or beyond—would cover at least another 7% of students entering UC (2,300 students) and CSU (3,900 students) in 2014. The average student whose family income is between $75,000 and $110,000 would save about $4,839 at CSU or $2,744 at UC, resulting in more than $25 million in combined tuition savings for those thousands of families.
How does guaranteed tuition in Illinois compare to year-to-year tuition in California? A University of Illinois Urbana–Champaign student starting in 2008 and finishing in four years knew in advance that tuition would be $9,242 for all four years, leaving the student with an overall bill of $36,968. For an incoming UC Berkeley student, tuition was a relatively low $6,262 in 2008, but that student did not know that tuition would increase 79% by the fourth year and would add up to more than $34,000.
But there’s a chance the policy could limit degree production. According to our research, students who begin their postsecondary career at a four-year college are much more likely than those who enroll at a community college to earn a bachelor’s degree, even when controlling for student characteristics. For example, students from low-income families who begin at a four-year college are, on average, two to three times more likely to finish their bachelor’s degree, regardless of their high school GPA. 
The history of tuition increases at UC and CSU shows that periods of low or no tuition growth are often followed by large spikes in growth, most recently in response to 
It is impossible to predict when the next recession will hit or what it will do to state revenues and higher education support. Steady increases could provide a cushion for universities if a drop in state funding occurs, and may allow them to keep to their planned tuition increases—but that depends on how the legislature responds to increases in tuition and the next recession. 
UC President Janet Napolitano has stated that she has considered limiting the number nonresident students in the UC system. But instead of setting system-wide limits, and relying on some universities to have fewer nonresidents to balance Berkeley and UCLA, the president and board of regents may consider setting enrollment limits for nonresident students for each university in the system. The full board of regents meets Thursday to vote on a plan for raising tuition at UC. If UC cannot increase revenue through tuition increases or from the state, they may seek to enroll more nonresidents, as they have done in the past. Even though the UC system has a relatively low proportion of nonresident students compared to the nation, such a move would still likely generate controversy.