College tuition is on the rise once again, and there appears to be no stopping it now.

Students at public four-year schools paid an average of $6,585 for the 2008-2009 academic year, according to College Board. This rate is up 5.9% from last year. The costs are even greater for a private college education, amounting to an average of $25,143, up 6%.

Out-of-state students at public four-year schools pay a total of $12,600 per term, up 5.2% from last year.

After factoring in the average $10,200 of grants and tax benefits, the tab for private-school students fell to $23,932, according to a recent report.

Due to the slowing of the economy, students attending state schools should expect further tuition hikes to make up for the lost funding. Due to the cut back on expenditures, as a result of budget shortfalls, subsidies for higher education are often the first items to be removed.

As the cost of education increase, so does the need for financial aid based programs. Grants, scholarships, and other forms of aid can help students lower the out-of-pocket costs significantly. Colleges are spending greater proportions of their budgets on financial aid due to the fact that an increasing number of families cannot provide the sticker price each term.

Pell Grants, funds given to low-income individuals who couldn’t normally afford the costs of college, were distributed to 5.4 million students last year. Each recipient obtained an average of $2,649. Most of the recipients came from families with incomes below $40,000 a year. Undergraduates received an average of $8,896 in financial aid, including $4,656 in grants, and $3,650 in federal loans. This figure includes both public and private schools across the nation.

Many of the most expensive colleges have a great deal of money to give away as grants and scholarships. This is something to keep in mind when looking around for the perfect school. Do not be discouraged by sticker prices, there may be money waiting at the other end of the application just waiting for you!