University Tuition and Spending Trends: Students Paying Bigger Share but Colleges Spending Less on Teaching

As public funding for higher education declined in the 2008-09 recession, the Delta Project report on Postsecondary Costs, Productivity and Accountability said American students and donors might have to provide an even higher percentage of college revenue in the future.

At the same time, the report added, the schools are spending less of their declining revenue on core education and more on administration, student services, academic support and maintenance, including campus security.

"Students are paying for more and arguably getting less," Delta Project said in the report, which was issued just as concern about college costs grew rapidly across the nation.

Delta Project Study

The study by Delta Project, an independent non-profit organization, focused on spending and income at 2,000 public and private non-profit colleges and universities from 2002 through 2006. Delta Project, which is headquartered in Washington, D. C., says its mission is "to improve college affordability by controlling costs and improving productivity."

Between 2002 and 2005, public institutions turned primarily to tuition and student fees to make up for cutbacks in state funding, increasing net tuition from $383 in research universities to $124 in community colleges.

From 2005 to 2006, tuition rose from a little over one third of educational costs to nearly one half at four-year public institutions. At private colleges, students were paying up to 85 percent of the total cost.

The proportion of revenue spent on classroom instruction has declined at all types of institutions. One college official pointed to higher security costs since the mass shooting at Virginia Tech in 2007.

Freezing College Tuition Rates

New York, California and Florida were endorsing hefty tuition increases early in 2009 to offset state cutbacks in the funding of higher education. But at least three states were considering freezing college tuition rates to help families struggling with the recession. Bills proposing freezes were introduced in the Mississippi and Texas legislatures in the same week and Kentucky legislative leaders were also considering putting a lock on tuition rates.

Richard Crofts, outgoing president of the Kentucky Council on Postsecondary Education, said he did not endorse a freeze, but added "it is time for us to do something that is maybe bolder and more dramatic."

The increasing cost of college has been a major concern for most of the 21st Century. According to FinAid.org, a website devoted to helping students find financial assistance, "college tuition has consistently increased faster than disposable family income." It said even in 2002 some schools were increasing rates up to 26 percent.

The copyright of the article University Tuition and Spending Trends in American Universities is owned by Carroll Trosclair. Permission to republish University Tuition and Spending Trends in print or online must be granted by the author in writing.

Jan 18, 2009 5:22 PM

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