Trends in Higher Education

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.

 1995-96
 2000-01
 2005-06


Note: 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. 

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This figure was prepared in October 2008 and was from Trends in College Pricing 2008.

  • At public doctorate-granting and master’s universities, tuition and fee revenues—not including the More
  • 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 More
  • 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 More
  • 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 More

Also Important

  • For private institutions, the main sources of revenue other than tuition and fees are private gifts, More
  • 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.

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