Tuition is rising, more students are in debt and at higher levels than ever before, and pressure is mounting from every direction and in both political parties--from the White House to state legislatures to overwhelmed parents and students--to do something about it. On the other hand, many colleges and college systems across the country have become more innovative and resourceful in providing higher education at lower cost, reducing expenditures on business operations, taking advantage of new technology, and redesigning instruction to make better use of expensive faculty time. So why hasn't this translated--usually--into costs savings for students? This issue paper outlines details of some key facts about higher education costs and prices that may provide some context for current policy debates. They include: (1) The actual cost to provide a public college education; (2) How much of the cost is covered by tuition; (3) How states differ in tuition and public support; (3) Why tuition is not going down even after colleges cut costs; (4) How institution subsidies differ from state financial aid; (5) What students' total education expenses actually are; and (6) Pros and cons of lower tuition.