Institutional Revenues and Expenditures

Net tuition and fees cover an increasing proportion of total educational costs in public institutions and a decreasing proportion of total educational costs in private institutions. Even students who do not receive institutional grant aid and pay the full published tuition price receive significant subsidies at most institutions.

Key Takeaways

At public doctorate-granting and master’s universities, tuition and fee revenues—not including the discounts students received from institutional funds—covered 49% of total educational costs in 2005-06, compared to 37% in 1995-96 and 2000-01.
In 2005-06, tuition and fee revenues covered 30% of total educational costs at public two-year colleges, up from 25% a decade earlier.
At private doctorate-granting universities, the proportion of total educational costs covered by net tuition revenues declined from 61% in 1995-96 to 52% in 2000-01 and 49% in 2005-06.
Net tuition revenues covered 80% of total educational costs at private master’s universities in 2005-06, down from 85% a decade earlier.
Net tuition revenues covered 60% of total educational costs at private baccalaureate colleges in 2005-06, down from 69% a decade earlier.

The largest subsidies are at private doctorate-granting universities, where the published price averaged $12,400 less than total educational costs per FTE student in 2005-06. Students in private baccalaureate colleges who paid the full published price received subsidies of about $2,300.
In private master’s universities, the published tuition price exceeded average educational costs per FTE student by about $800 in 2005-06.
Average subsidies per full-time student in the public sector were just under $6,000 in doctorate-granting, baccalaureate and associate’s institutions, and just under $5,000 in master’s institutions.

ALSO IMPORTANT

For private institutions, the main sources of revenue other than tuition and fees are private gifts, investment returns, and endowment income, in addition to revenues from auxiliary enterprises (such as dormitories and dining halls) and hospitals.
For public institutions, the main sources of revenue other than tuition and fees are state and local appropriations, in addition to revenues from auxiliary enterprises.

Figure 9a: Total Net Tuition and Fee Revenues as a Percentage of Total Educational Costs by Carnegie Classification, 1995-96, 2000-01, and 2005-06

1995-96

2001-02

2005-06

Notes: Total educational costs include spending on instruction and student services, as well as the instructional share of spending on central academic and administrative support and operations and maintenance. Net tuition and fees equal gross tuition and fee revenue (including federal and state grants) less institutional grant aid (price discounts).
Source: The Delta Cost Project; calculations by the authors. excel

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This graph was prepared in October 2008.

Figure 9b: Average Educational Subsidy per Full-Pay Student by Carnegie Classification, 2005-06

Subsidy per full-pay student is the dollar amount of full educational cost per FTE student that is not covered by published tuition and fees per FTE.

Notes: Total educational costs include spending on instruction and student services, as well as the instructional share of spending on central academic and administrative support and operations and maintenance. Net tuition and fees equal gross tuition and fee revenue (including federal and state grants) less institutional grant aid (price discounts).
Source: The Delta Cost Project; calculations by the authors. excel

Download Excel for this figure. excel

Download Excel for all figures.

This graph was prepared in October 2008.