trends in college pricing 2011 from the college board

8/3/2019 Trends in College Pricing 2011 from the College Board

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5%

%

5

0

50

5

Tuition and Fees

Appropriations per FTE ( Excluding Federal Stimulus Funds)

Trends in Higher Education Series

Trends inCollege Pricing2011


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TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING 2011 3

For detailed background data and additional information, please visit http://trends.collegeboard.org.

Highlights

Increases in college prices or the 2011-12 academic year refect

the infuence o a weak economy and state unding that has

not kept up with the growth in college enrollments. For the th

consecutive year, the percentage increase in average tuition

and ees at public our-year institutions was higher than thepercentage increase at private nonprot institutions. Substantial

variation across states in pricing patterns makes national

averages particularly dicult to interpret this year.

PUBLISHED TUITION AND FEE AND

ROOM AND BOARD CHARGES

Caliornias 2011-12 tuition and ee increases

o 21% at public our-year universities and 37%

at public two-year colleges raised the national

averages markedly. The increase or the public

our-year sector was 7.0% excluding Caliornia,

and 8.3% including it. The increase or public

two-year institutions was 7.4% excluding

Caliornia, and 8.7% including it.

Over the decade rom 2001-02 to 2011-12, published tuition

and ees or in-state students at public our-year colleges and

universities increased at an average rate o 5.6% per year beyond

the rate o general infation. This rate o increase compares to

4.5% per year in the 1980s and 3.2% per year in the 1990s.

Over the decade rom 2001-02 to 2011-12, published in-state

tuition and ees at public two-year colleges increased at anaverage rate o 3.8% per year beyond the rate o general

infation. This rate o increase compares to 6.1% per year in

the 1980s and 0.5% per year in the 1990s.

Over the decade rom 2001-02 to 2011-12, published tuition

and ees at private nonprot our-year institutions increased at

an average rate o 2.6% per year beyond infation. This rate o

increase compares to 4.8% per year in the 1980s and 3.1%

per year in the 1990s.

Published charges do not refect the prices most students pay.

About one-third o ull-time students pay or college without the

assistance o grant aid, and some o these students receiveederal tax credits and deductions to help cover expenses.

Published in-state tuition and ees at public our-year

institutions average $8,244 in 2011-12, $631 (8.3%) higher

than in 2010-11. Average total charges, including tuition and

ees and room and board, are $17,131, up 6.0% rom 2010-11.

Published out-o-state tuition and ees at public our-year

colleges and universities average $20,770, $1,122 (5.7%)

higher than in 2010-11. Average total charges are $29,657, up

5.2% rom 2010-11.

Published tuition and ees at public two-year colleges average

$2,963, $236 (8.7%) higher than in 2010-11.

Published tuition and ees at private nonprot our-year colleges

and universities average $28,500 in 2011-12, $1,235 (4.5%)higher than in 2010-11. Average total charges, including tuition and

ees and room and board, are $38,589, up 4.4% rom 2010-11.

Estimated published tuition and ees at private or-prot

institutions average $14,487 in 2011-12, $447 (3.2%) higher

than in 2010-11.

VARIATION IN TUITION AND FEES

Hal o all ull-time students at public and private

nonprot our-year colleges attend institutions

charging tuition and ees o $9,936 or less, and

hal attend institutions with published prices o$9,936 or more.

In 2011-12, published in-state tuition and ees at public

doctoral universities are $9,185, compared to $7,186 at public

masters universities and $6,604 at public bachelors colleges.

Although the average increase in tuition and ees at public

our-year colleges and universities in 2011-12 is 8.3% or

in-state students and 5.7% or out-o-state students, 20% o

ull-time students at public our-year colleges and universities

attend institutions that increased their published prices by

12% or more, and 10% attend institutions that increased theirprices by less than 3%.

In 2011-12, average published in-state tuition and ees or

public our-year colleges and universities range rom $7,056 in

the South to $10,494 in New England. Average published in-

state tuition and ees or public two-year colleges range rom

$1,928 in the West to $4,437 in New England.

Caliornia, which enrolls about 10% o the nations ull-time

public our-year college students, has the highest percentage

increase in published in-state tuition and ees (21%) or that

sector in 2011-12. Arizona and Washington increased published

in-state tuition and ees at public our-year institutions by 17%

and 16%, respectively. In contrast, increases in Connecticut

and South Carolina are about 2.5%.

Caliornia, which enrolls about 15% o the nations ull-

time public two-year college students, also has the highest

percentage increase in tuition and ees or this sector (37%)

in 2011-12. Alabama and North Carolina increased published

tuition and ees at public two-year colleges by 21% and 17%,

respectively. In contrast, increases are less than 1% in Rhode

Island and between 1% and 2% in Montana and North Dakota.


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4 TRENDS IN COLLEGE PRICING 2011 TRENDS IN HIGHER EDUCATION SERIES


WHAT STUDENTS ACTUALLY PAY

In 2011-12, ull-time undergraduates receive an

estimated average o about $5,750 in grant aid

rom all sources and ederal tax benets at publicour-year institutions, $15,530 at private nonprot

our-year institutions, and $3,770 at public two-

year colleges.

Between 2006-07 and 2011-12, the average net tuition and

ees that in-state students pay at public our-year institutions,

ater taking grant aid rom all sources and ederal education

tax credits and deductions into consideration, increased at an

average rate o 1.4% per year beyond infation, compared to

5.1% per year or published prices.

In 2011-12, at both private nonprot our-year and public two-

year institutions, average net tuition and ees paid are lower

than they were in 2006-07, ater adjusting or infation.

In 2007-08, when average published tuition and ees at public

our-year colleges ranged rom $8,650 at the most selective

institutions to $5,150 at those with open admission, average

tuition and ees net o all grant aid and tax benets ranged

rom $4,278 in the rst group to $643 in the latter group.

In 2007-08, when average published tuition and ees at private

nonprot our-year institutions ranged rom $28,080 at the

most selective institutions to $14,800 at those with open

admission, average tuition and ees net o all grant aid and tax

benets ranged rom $16,577 in the rst group to $8,247 in

the latter group.

COLLEGE AFFORDABILITY

In 2010, average income was lower at all levels

o the income distribution than it had been a

decade earlier. Declines ranged rom 16% in

infation-adjusted dollars or the bottom 20%

o amilies, and 11% or the top 5%, to 3% or

amilies in the 60th to 80th percentiles.

In 2010, median amily income or those with a bachelors

degree or more was $99,716, compared to $48,332 or those

with only a high school diploma.

INSTITUTIONAL FINANCES

State appropriations per ull-time equivalent

(FTE) student declined by 9% in constant dollars

in 2008-09, by another 6% in 2009-10, and by 4%in 2010-11.

State unding per FTE student or higher education institutions

was 23% lower in infation-adjusted dollars in 2010-11 than it

had been a decade earlier.

Subsidies per student the dierence between educational

expenditures and net tuition revenues increased at an

average annual rate o 4.1% in infation-adjusted dollars at

private doctoral universities between 2002-03 and 2008-09

and declined in other sectors. The declines ranged rom

0.2% at public two-year colleges to 5.6% at private mastersuniversities.

In 2008-09, average subsidies per FTE student ranged rom

$1,470 at private masters universities to $19,380 at private

doctoral universities.

In 2008-09, the average cost o educating a ull-time student

ranged rom $41,200 at private doctoral institutions, where

about one-third o students are graduate students, to $9,300

at public two-year colleges.

ENROLLMENT PATTERNS

In 2008, only 2.2% o our-year degree-grantingcolleges and universities in the U.S. (53 out o

2,401) accepted less than 25% o their applicants.

Almost hal o all our-year degree-granting

institutions (1,144 out o 2,401) were open

admission or accepted at least 75% o their

applicants.

At the most selective institutions, where students have strong

academic preparation, 83% o students who began their

studies at our-year colleges in 2002 had completed degrees

at their rst institution by all 2008. Only 27% o students who

began at open enrollment institutions and 53% o those who

began at institutions accepting at least 75% o their applicants

earned degrees at their rst institution within six years.


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Contents

3 Highlights

6 Undergraduate Budgets FIGURE 1 Average Estimated Undergraduate Budgets, 2011-12

7 Introduction

10 Tuition and Fee and Room and

Board Charges, 2011-12

TABLE 1A Average Published Undergraduate Charges by Sector, 2011-12

TABLE 1B Average Published Undergraduate Charges by Carnegie Classication,

2011-12

11 Variation in Tuition and Fees,

2011-12

FIGURE 2 Distribution o Students by Tuition and Fees

12 Variation in Tuition and Fee

Increases, 2011-12

FIGURE 3 Distribution o Students by Increases in Tuition and Fees

13 Tuition and Fee and Room and

Board Charges over Time

FIGURE 4 Average Rates o Growth o Tuition and Fees over Time

FIGURE 5 Published Tuition and Fees Relative to 1981-82 by Sector

14 Regional Variation in Charges FIGURE 6 Average Published Prices by Region over Time

15 Average Net Price FIGURE 7 Average Net Price by Sector over Time

16 Net Price Public Institutions FIGURE 8A Net Prices by Selectivity: Public Four-Year, 2007-08FIGURE 8B Net Prices by Attendance Status: Public Two-Year, 2007-08

17 Net Price Private Institutions FIGURE 9A Net Prices by Selectivity: Private Nonprot Four-Year, 2007-08FIGURE 9B Net Prices by Attendance Status: For-Prot, 2007-08

18 Institutional Revenues

Public Appropriations

FIGURE 10A Annual Percentage Changes in State Appropriations and Public

Four-Year Prices over Time

FIGURE 10B Total and Per FTE Student State Appropriations and Public Enrollment

over Time

19 Institutional Revenues

Public Appropriations

FIGURE 11A State Appropriations per $1,000 in Personal Income over Time

FIGURE 11B State Appropriations per $1,000 in Personal Income by State, 2010-11

20 Institutional Revenues FIGURE 12A Revenue Sources at Public Institutions over TimeFIGURE 12B Revenue Sources at Private Institutions over Time

FIGURE 12C Revenues rom Private Gits, Investment Returns, and Endowment Income

21 Institutional Revenues and

Expenditures

FIGURE 13 Net Tuition Revenues, Subsidies, and Educational Expenditures per FTE

Student over Time

22 Endowments FIGURE 14 Endowment Assets per FTE Student, 2009-10

23 Endowments FIGURE 15A Changes in Private Sector Endowment Assets over TimeFIGURE 15B Endowment Spending Rates over Time

24 Family Income FIGURE 16A Changes in Family Income over TimeFIGURE 16B Family Income by Selected Characteristics, 2010


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Contents Continued

FIGURE 1 Average Estimated Undergraduate Budgets, 2011-12 (Enrollment-Weighted)

Tuition and ees constitute about 38% o the total budget or in-state students living on campus at

public our-year colleges and universities, and less than 20% o the budget or public two-year college

students who pay or o-campus housing.

NOTE: Expense categories are based on institutional budgets or students as reported by colleges and universities in theAnnual Survey o Colleges. They do

not necessarily reect actual student expenditures.

SOURCE: The College Board,Annual Survey o Colleges.

$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000

Other ExpensesTransportationBooks and SuppliesRoom and BoardTuition and Fees

Private Nonprot Four-YearOn-Campus

Public Four-YearOut-of-State On-Campus

Public Four-YearIn-State On-Campus

Public Two-YearCommuter

Undergraduate Budget

$28,500

$20,770

$8,244

$2,963

$10,089

$8,887

$8,887

$7,408

$1,213

$1,168

$1,168

$1,182

$926

$1,082

$1,082

$1,606

$1,496

$2,066

$2,066

$2,127

$21,447

$15,286

$33,973

$42,224

25 Enrollment Patterns over Time FIGURE 17 Enrollment by Attendance Status over Time

26 Enrollment and Degrees Granted FIGURE 18 Distribution o Full-Time Undergraduates and o All Undergraduatesby Sector, Fall 2009

FIGURE 19 Degrees Granted by Sector over Time

27 Migration FIGURE 20A Percentages o First-Year Students Enrolled In-State, Fall 2008FIGURE 20B Percentages o First-Year Students Who Were State Residents, Fall 2008

28 Selectivity and Completion FIGURE 21A Distribution o Institutions by Acceptance Rate, Fall 2008FIGURE 21B Graduation Rate by Acceptance Rate, Fall 2008

29 Faculty and Sta FIGURE 22A Changes in Faculty Compensation and in Tuition and Fees over TimeFIGURE 22B Sta to Student Ratios over Time

FIGURE 22C Percentage o Faculty Employed Full-Time over Time

FIGURE 22D Percentage o Full-Time Faculty with Tenure over Time

30

Notes and Sources


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Introduction

As the 2011-12 academic year begins, the challenging conditions

o recent years continue. Persistently high unemployment and

weak state economies put increasing pressures on state and

institutional budgets as well as student and amily resources.

College prices continue to rise more rapidly than the amountinstitutions spend to educate students, with tuition carrying a

growing share o the nancing o postsecondary education at

a time when students and amilies are ill-equipped to manage

additional expenses.

Federal stimulus unds augmented state unding to institutions

or three years. In addition, ederal student aid particularly

Pell Grants, veterans benets, and tuition tax credits has

become more generous in recent years. But concerns over

the decit make it dicult to be optimistic about the ederal

government continuing to increase its contribution to college

nancing. New solutions will be required i the United States

is to have any measurable success in increasing its overall

educational attainment and reversing the decline in the

economic opportunities available to the least advantaged

members o our society.

Trends in College Pricingprovides detailed inormation about

college prices and some o the actors aecting those prices.

The cost o producing education is a major actor, and the

report includes data on institutional expenditure patterns.

But prices also depend on the nontuition revenues available

to colleges and universities. Data on state appropriations,

endowments, and other revenue sources provide insight

into the orces aecting the share o costs borne by tuition

revenues. Developing a more thorough understanding o all

the orces aecting prices would require better historical data

on the expenditure patterns o colleges and universities than

is currently available, as well as careul empirical analysis o all

contributing orces, and is beyond the scope o this report.

Providing high-quality higher education is expensive. We must

nd ways to stem the growth in both the costs the resources

invested and the prices paid by students and amilies. But

even i that eort is successul, the priority placed on investing

in education will have to be greater at all levels o government,

as well as among students and amilies, in order to improve the

quality o education, prepare a better-educated labor orce, andcreate a stronger economy and a healthier society. Postsecondary

institutions will have to nd ways to oer high-quality education in

a more cost-eective manner. State and ederal governments will

have to improve their systems or supporting both institutions and

the students they educate. The data provided in Trends in College

Pricingcan inorm policymakers, researchers, and others in their

analyses o these issues.

The companion publication, Trends in Student Aid, contains

detailed inormation about the nancial aid that helps students

and amilies pay these prices. The website that accompanies

the two publications makes data easily available or reerence

and downloading. The text that accompanies the graphs and

tables in Trends in College Pricingdoes not summarize all o the

inormation reported, but points to key ideas and should helpreaders interpret the data.

PUBLISHED PRICES

The published prices on which the analysis in Trends in College

Pricingis based come rom data reported by institutions on the

College Boards Annual Survey o Colleges. This survey, which

is distributed to nearly 4,000 postsecondary institutions across

the country, collects a wealth o data on enrollment, admission,

degrees and majors, tuition, nancial aid, and other aspects o

undergraduate education.

The prices reported here are averages or one year o ull-time

enrollment. About 36% o all undergraduates and 59% o

those attending public two-year colleges are enrolled part-time.

Because o the variety o enrollment and pricing patterns,

it is not possible to provide estimates o the charges acing

these students that would be as accurate as the inormation

we provide about ull-time students. Data on ull-time charges

provide the best basis or comparison both over time and

across sectors.

The prices included in Trends in College Pricingrepresent best

estimates o average prices or all ull-time undergraduate

students. However, a growing number o institutions charge

dierent prices or dierent years and/or or dierent programs

o study. We are able to incorporate dierences in prices by

year o study reported to us by individual institutions, but

not dierences by programs. Another complexity that has

developed in recent years concerns the division o institutions

into the public two-year and public our-year sectors. More

and more two-year colleges are oering a small number o

our-year degrees or providing course work that leads to our-

year degrees awarded on other campuses. While we make

every eort to adjust our methodology to accommodate these

changes, it is impossible to draw precise lines and to develop

exact measures in all cases.

Trends in College Pricing 2011 presents detailed data on

public two-year and our-year and private nonprot our-

year institutions or the 2011-12 academic year. Comparable

inormation about the growing or-prot sector o

postsecondary education, which enrolls about 13% o all ull-

time students, is not available. We do provide an estimate o

the average charges at or-prot institutions, but because o the

relatively small sample o those institutions rom which we are

able to collect data, it is important to interpret that inormation

with caution.


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Finally, when interpreting college prices, it is important to

remember that Trends in College Pricingreports on the price o

one year o college. Many students require more than two years

o study to earn an associate degree or more than our years o

study to earn a bachelors degree. It is critical to consider thetotal price or all years o study when thinking about what is

required to pay or college. There is considerable variation across

sectors as well as among institutions within sectors in both

average time to degree and overall graduation rates.

TUITION AND FEES VERSUS TOTAL

CHARGES

Some o the graphs in this report ocus only on tuition and

ee charges, but we also report room and board charges or

residential students, living costs or commuter students, and

other components o student budgets. Because tuition and

ees are relevant or all enrolled students, they are easiest to

compare. However, whether students live on or o campus,

they all must also pay or housing and ood, buy books and

supplies, and cover transportation and other basic living costs.

Room and board and other living costs are not really part o

the cost o attending college. These are expenses people

ace whether or not they are in school. The largest real cost

many students ace is orgone earnings. It is very dicult to

succeed in college while working ull-time. However, the cost o

students time is dicult to measure, and we make no attempt

to do so in this report. Because students tend to think o living

expenses as part o the cost o going to college, and because

they must come up with the unds to cover these outlays, it is

useul to use these expenses as a proxy or orgone earnings.

The cost o living poses a signicant hurdle or many students.

Even those who receive grant aid sucient to cover tuition and

ee charges may struggle to cover living expenses. It is not so

much the prices charged by institutions, but the very real costs

students incur by devoting their time to school and orgoing the

income needed to support themselves and their amilies while

in school that create the burden or these students.

NET PRICES: WHAT STUDENTS

ACTUALLY PAY

Although it is generally the published prices that make

headlines, it is the net prices paid by individual students that

matter most or college access and aordability. This concept

will become more amiliar as students and amilies use the

new net price calculators that all colleges and universities

participating in ederal student aid programs are required by

Congress to post on their websites as o Oct. 29, 2011.

The denition o net price on which we rely is the average

price paid by all ull-time students including those who do and

do not receive student aid ater subtracting grant aid rom all

sources in addition to ederal tax credits and deductions. Data

on prices rom the Annual Survey o Collegesand on student aidrom Trends in Student Aidallow us to generate new, updated

estimates or average net prices by sector each year. Data

rom the National Postsecondary Student Aid Study, released

every our years, allow us to estimate net prices or students

at dierent income levels and enrolled in dierent types o

institutions. This year we include our annual average net price

calculation, as well as comparisons o net prices at institutions

with dierent levels o selectivity.

HOW COLLEGE PRICES ARE CHANGING

The data in this report conrm the widespread perception that

published college prices are rising more rapidly than the prices

o other goods and services. This is not a new phenomenon,

but one that has persisted over the entire 30-year period

documented here. The rate o increase in published prices in

the our-year public sector has been higher over the past decade

than in previous decades, but the same is not true or the public

two-year and private nonprot our-year sectors.

About one-third o ull-time students pay the ull published

tuition price with no grant assistance. The prices these students

pay have increased very rapidly. For example, students receiving

neither grants nor tax benets are paying an average o 8.3%

more in tuition and ees at public our-year colleges this year

than they paid last year. In addition, the nontuition expenses

associated with going to college continue to rise, and grant aid

is rarely sucient to meet those costs. Another very signicant

issue is that, as documented in Figure 16A, incomes have

declined over the past decade or amilies at all levels o the

income distribution. In addition, the assets many amilies have

saved to pay or college have diminished in value. In other

words, rising tuition levels cause more problems because o the

economic environment in which they are occurring.

Neither changes in average published prices nor changes in

average net prices necessarily describe the circumstances

acing individual students. There is considerable variation inprices across sectors and across states and regions as well as

among institutions within these categories. College students in

the United States have a wide variety o educational institutions

rom which to choose, and these come with many dierent

price tags. Moreover, dierent students pay dierent prices at

the same institution. One o the problems many students ace

is how to make sense o all the options and complex pricing

structures.


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Annual percentage increases in tuition and ees consistently

receive most o the attention, but the price level and the

dollar increases in the price level matter most to students and

amilies. Small percentage increases at colleges and universities

with high tuition and ee levels may translate into large dollarincreases. At lower-priced institutions, larger percentage

increases have less impact on aordability.

Total postsecondary enrollment increased by about 22%

between 2005-06 and 2010-11. Full-time enrollment increased

more rapidly than part-time enrollment. The largest increases

have been in public two-year colleges and or-prot institutions.

The act that students are nding ways to nance their

education is largely explained by the understanding that more

education generally leads to higher earnings throughout lie.

Nonetheless, the reality that more students and amilies are

struggling to pay or higher education, both during the college

years and in the ollowing years when education loans must be

repaid, suggests that the current path o increases in published

college prices is not likely to be sustainable.

THE CONSUMER PRICE INDEX

We provide much o our data in constant dollars, adjusting

values or changes in the Consumer Price Index (CPI). We use

the change in the CPI rom July 2010 to July 2011 to compare

the price level or academic year 2011-12 to earlier prices.

(Because Trends in College Pricing 2011 publishes data in

all 2011 or the current academic year, we must rely on the

change in the price level in the year preceding the beginning

o the term.) While the CPI adjustment is necessary to make

meaningul comparisons o values over long periods o time,

comparisons o one-year changes in constant dollars may be

conusing. Large fuctuations in energy prices have led to an

unusually volatile CPI in recent years. The 5.6% increase in the

CPI rom July 2007 to July 2008 was the highest annual infation

rate since 1982. As a result, constant dollar increases or 2008

were small relative to current dollar increases. Between July

2008 and July 2009, the CPI declined by 2.1%, which resultedin constant dollar increases that were larger than current dollar

increases. The CPI increased by 1.2% between July 2009 and

July 2010, and by 3.6% rom 2010 to 2011.

A NOTE ON TRENDSDATA

While the inormation reported here provides a best

approximation o trends in college charges over time, we would

caution readers about placing too much reliance on either

precise dollar amounts or precise annual percentage changes.

Each year we revise the average prices calculated the previous

year to account or corrected data we receive rom institutions

and to provide an enrollment-weighted average based on the

most recent available data on the number o ull-time students

attending each institution. I, over time, increasing numbers o

students were to enroll in the lower-priced institutions within

a sector, our measure o the average price increase would be

lower than i enrollment were stable. Details relating to our

methodology and to other technical issues and data reliability

can be ound at the end o the report, in the Notes and Sources

section.

The tables supporting all o the graphs in theTrends

publications, PDF versions o the publications, PowerPoint

fles containing individual slides or all o the graphs, and other

detailed data on student aid and college pricing are available

on our website athttp://trends.collegeboard.org. Please eel

ree to cite or reproduce the data in Trends or noncommercial

purposes with proper attribution.


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Tuition and Fee and Room and BoardCharges, 2011-12Caliornias 2011-12 published in-state tuition and ee increases o 21% at public our-year universities

and 37% at public two-year colleges raised the national averages markedly. The increase or the public

our-year sector was 7.0% excluding Caliornia, and 8.3% including it. The increase or public two-year

institutions was 7.4% excluding Caliornia, and 8.7% including it.Caliornia enrolls about 10% o the nations ull-time public

our-year students and 15% o the nations ull-time public two-

year students. Public our-year published prices in Caliornia

were slightly lower than the national average in 2010-11,

but are almost $800 higher than the average in 2011-12. The

average public two-year price in Caliornia is only $1,119 in

2011-12, compared to $3,288 in the rest o the country.

Arizona and Washington increased published tuition and ees

at public our-year colleges by 17% and 16%, respectively,

in 2011-12. In contrast, increases in Connecticut and South

Carolina were about 2.5%.

Alabama and North Carolina increased published in-state

tuition and ees at public two-year colleges by 21% and 17%,

respectively, in 2011-12. In contrast, increases are less than

1% in Rhode Island and between 1% and 2% in Montana and

North Dakota.

For the 2011-12 academic year, average tuition and ees range rom

$2,963 per year at public two-year colleges and $6,604 at public

bachelors colleges, to $35,195 at private doctoral universities.

ALSO IMPORTANT:

About 12% o ull-time public our-year college students study out o

state, but many states have reciprocity agreements with neighboring

states that allow students to pay less than the published prices or

nonresident students.

The prices cited here are not representative o the prices students

actually pay. About two-thirds o undergraduate students enrolled

ull-time receive grants that reduce the actual price o college. In

addition, many states and institutions grant tuition waivers to groups

o students such as dependents o employees, veterans, or teachers.

See Figures 7, 8A, 8B, 9A, and 9B or estimates o net prices paid by

students and Trends in Student Aid 2011 or details about student aid.

The total price o a college education depends on the number o terms

o study or which a student is enrolled beore completing a degree.

Many students spend more than our years earning a bachelors

degree. Average time to degree is longer in public than in private

nonprot colleges.

Part-time students pay lower tuition and ees than those reported here.

In all 2009, 59% o students at public two-year colleges were enrolled

part-time, as were 22% o undergraduates at public our-year, 17% at

private nonprot our-year, and 21% at or-prot institutions. (National

Center or Education Statistics [NCES], unpublished data)

TABLE 1A Average Published Charges or Undergraduates by Type and Control o Institution, 2011-12 (Enrollment-Weighted)

Tuition and Fees Room and Board Total Charges

Sector 2011-12 2010-11 $ Change % Change 2011-12 2010-11 $ Change % Change 2011-12 2010-11 $ Change % Change

Public Two-Year In-State $2,963 $2,727 $236 8.7%

Public Four-Year In-State $8,244 $7,613 $631 8.3% $8,887 $8,549 $338 4.0% $17,131 $16,162 $969 6.0%

Public Four-Year Out-o-State $20,770 $19,648 $1,122 5.7% $8,887 $8,549 $338 4.0% $29,657 $28,197 $1,460 5.2%

Private Nonproft Four-Year $28,500 $27,265 $1,235 4.5% $10,089 $9,706 $383 3.9% $38,589 $36,971 $1,618 4.4%

For-Proft $14,487 $14,040 $447 3.2%

Sample too small to provide meaningul inormation.

TABLE 1B Average Published Charges or Undergraduates by Carnegie Classifcation, 2011-12 (Enrollment-Weighted)

Tuition and Fees Room and Board Total Charges

Sector 2011-12 2010-11 $ Change % Change 2011-12 2010-11 $ Change % Change 2011-12 2010-11 $ Change % Change

Public Doctoral In-State $9,185 $8,492 $693 8.2% $9,353 $8,989 $364 4.0% $18,538 $17,481 $1,057 6.0%

Public Masters In-State $7,186 $6,600 $586 8.9% $8,153 $7,856 $297 3.8% $15,339 $14,456 $883 6.1%

Public Bachelors In-State $6,604 $6,207 $397 6.4% $8,251 $7,927 $324 4.1% $14,855 $14,134 $721 5.1%

Private Doctoral $35,195 $33,699 $1,496 4.4% $11,806 $11,381 $425 3.7% $47,001 $45,080 $1,921 4.3%

Private Masters $25,863 $24,695 $1,168 4.7% $9,629 $9,259 $370 4.0% $35,492 $33,954 $1,538 4.5%

Private Bachelors $25,838 $24,776 $1,062 4.3% $9,233 $8,869 $364 4.1% $35,071 $33,645 $1,426 4.2%

NOTE: Prices reported or 2010-11 have been revised and dier rom those reported inTrends in College Pricing 2010. Prices vary or undergraduate studentswithin institutions; all o this variation may not be accounted or in the reported averages. See Notes and Sources on p. 30 or defnitions o the institutionalcategories in Table 1B.


Enrollment-weighted tuition and ees weight the price charged by each institution by the number o ull-time students enrolled in all 2010. Public

our-year in-state charges are weighted by total all 2010 ull-time enrollment in each institution, including both in-state students and out-o-state

students. Out-o-state tuition and ees are computed by adding the average in-state price to the out-o-state premium weighted by the number o

ull-time out-o-state students enrolled at each institution. Room and board charges are weighted by the number o students residing on campus.


11/32

TRENDS IN STUDENT AID 2010 11TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING 2011 11


Variation in Tuition and Fees, 2011-12

FIGURE 2 Distribution o Full-Time Undergraduates at Four-Year Institutions by Published Tuition and Fees, 2011-12

Hal o all ull-time students at public and private nonprot our-year colleges and universities attend

institutions charging tuition and ees o $9,936 or less, and hal attend institutions with published

prices o $9,936 or more.

The median ull-time public our-year

college student, including both in-state

and out-o-state students, is enrolled at

an institution with published tuition and

ees o $8,274, and the median student

in the private nonprot our-year sector

aces published charges o $29,492.

About 28% o ull-time private nonprot

college students are enrolled in institutions

charging $36,000 or more. Because

virtually no public college students ace

this level o charges, only 9% o all public

and private nonprot our-year students

combined are enrolled in these institutions

with the highest published prices.

About 19% o ull-time students at

public our-year colleges and universities

are enrolled in institutions charging less

than $6,000. About 5% o students at

private nonprot our-year colleges and

universities are enrolled in institutions in

this price range.

NOTE: For out-o-state students enrolled in public our-year colleges, the nonresident premium has been added to in-state tuition and ees. Some out-o-statestudents actually pay lower prices because o reciprocity agreements, which allow students rom neighboring states to pay less than the ull out-o-stateprice. The distribution o students across institutions is based on the latest available enrollment data, which are or all 2010. Percentages may not sum to 100because o rounding.


Percentage of Full-Time Undergraduates

Public and Private Nonprot Four-Year Combined Public Four-Year Private Nonprot Four-Year

Tuitiona

nd

Fees

0% 10% 20% 30% 40%0% 10% 20% 30% 40%0% 10% 20% 30% 40%

Under $3,000

$3,000 to $5,999

$6,000 to $8,999

$9,000 to $11,999

$12,000 to $14,999

$15,000 to $17,999

$18,000 to $20,999

$21,000 to $23,999

$24,000 to $26,999

$27,000 to $29,999

$30,000 to $32,999

$33,000 to $35,999

$36,000 to $38,999

$39,000 to $41,999

$42,000 and over

(Median = $9,936) (Median = $8,274) (Median = $29,492)

0.7%

14.2%

29.0%

12.6%

8.9%

3.3%

3.6%

4.1%

4.0%

4.5%

4.0%

2.6%

2.4%

3.8%

2.5%

1.1%

18.2%

41.3%

16.9%

11.2%

3.2%

2.2%

1.9%

1.5%

1.7%

0.3%

0.4%

0.2%

0.0%

0.0%

0.0%

4.8%

0.9%

2.7%

3.6%

3.5%

6.7%

9.2%

9.8%

10.9%

12.5%

7.7%

7.3%

12.4%

8.1%


12/32



Variation in Tuition and Fee Increases, 2011-12

Although the average increase in tuition and ees at public our-year colleges in 2011-12 is 8.3% or

in-state students and 5.7% or out-o-state students, 20% o ull-time students at public our-year

colleges and universities attend institutions that increased their published prices by 12% or more,

and 10% attend institutions that increased their prices by less than 3%.The average increase in tuition

and ees at private nonprot our-

year colleges and universities in

2011-12 is 4.5%, and 71% o the

ull-time students in this sector

attend institutions that increased

their charges by between 3%

and 6%. About 14% o students

in this sector attend institutions

that increased their prices by less

than 3%, while about 3% aced

increases o 9% or more.

The median 2011-12 dollar increase

in published tuition and ees or

public our-year college students

is $540. The median dollar increase

or private nonprot college

students is $1,300.

ALSO IMPORTANT:

Increases in published prices do not necessarily

correspond to increases in the amounts students pay.

The amounts students pay also depend on the amount

o grant aid they receive.

FIGURE 3 Distribution o Full-Time Undergraduates at Public and Private Nonproft Four-Year Institutions by Percentage

and Dollar Increase in Published Tuition and Fees, 2011-12

NOTE: For out-o-state students enrolled in public our-year colleges, the nonresident premium has been added to in-state tuition and ees. Some out-o-statestudents actually pay lower prices because o reciprocity agreements, which allow students rom neighboring states to pay less than the ull out-o-stateprice. The distribution o students across institutions is based on the latest available enrollment data, which are or all 2010. Percentages may not sum to 100because o rounding.


0% 20% 40% 60% 80%

Under $200

$200 to $399

$400 to $599

$600 to $799

$800 to $999

$1,000 to $1,199

$1,200 to $1,399

$1,400 to $1,599

$1,600 to $1,799

$1,800 to $1,999

$2,000 or more

0% 20% 40% 60% 80%

Public Four-Year

Private Nonprot Four-Year

Under 3%

3% to 5.9%

6% to 8.9%

9% to 11.9%

12% to 14.9%

15% to 17.9%

18% to 20.9%

21% or more

Percentage of Full-Time Undergraduates

Percentage Increase Dollar Increase

Amounts

Percentage

10%

35%

23%

12%

6%

6%

2%

6%

14%

71%

12%

3%


13/32



Tuition and Fee and Room and Board Chargesover Time

Over the decade rom 2001-02 to

2011-12, published in-state tuition and

ees at public our-year colleges and

universities increased at an averagerate o 5.6% per year beyond the rate o

general infation.

Over the most recent decade, the largest one-

year increases in average published tuition and

ees at public our-year colleges and universities

were 11.0% beyond infation in 2003-04, and

9.3% beyond infation in 2009-10. The infation-

adjusted increase was under 1.0% in 2008-09,

and is 4.5% in 2011-12.

From 1981-82 to 1991-92, average published

tuition and ees increased slightly more rapidly

at private than at public our-year colleges and

universities. Over the most recent decade, the

average public our-year price rose more than

twice as ast as the average private our-year

price. In 2011-12, the average published tuition

and ees at public our-year institutions are 29%

o the average published tuition and ees at

private nonprot our-year institutions, up rom

22% a decade earlier.

Average public two-year college tuition increased

by only 5% in constant dollars over the entire

decade rom 1991-92 to 2001-02 rom $1,942

(in 2011 dollars) to $2,047. In the most recent

decade, the average price in this sector has

increased by 45%, ater adjusting or infation.

Room and board charges tend to rise more slowly

than tuition and ees. Over the decade rom 2001-02

to 2011-12, when published tuition and ees at

public our-year institutions rose at an average rate

o 5.6% per year beyond infation, room and board

increased by 2.9% per year, leading to a 4.1%

average annual rate o growth in total charges.

Over the decade rom 2001-02 to 2011-12, when

published tuition and ees at private nonprot

our-year institutions rose at an average rate o

2.6% per year beyond infation, room and boardincreased by 2.0% per year, leading to a 2.4%

average annual rate o growth in total charges.

ALSO IMPORTANT:

About 40% o ull-time dependent students enrolled

in public our-year institutions live on campus. Another

40% live in o-campus housing, and about 20%

live with their parents. Among dependent students

at private nonprot our-year colleges, 70% live on

campus, 17% live in o-campus housing, and 12%

live with their parents. (NCES, National Postsecondary

Student Aid Study [NPSAS], 2008)

FIGURE 4

Average Annual Percentage Increases in Ination-Adjusted Published Prices by

Decade, 1981-82 to 2011-12

FIGURE 5

Ination-Adjusted Published Tuition and Fees Relative to 1981-82, 1981-82 to

2011-12 (1981-82 = 100)

Each bar in Figure 4 shows the average annual rate o growth o published prices

in ination-adjusted dollars over a 10-year period. For example, rom 2001-02 to

2011-12, average published tuition and ees at private our-year colleges rose by an

average o 2.6% per year beyond increases in the Consumer Price Index.

SOURCES: The College Board,Annual Survey o Colleges; NCES, Integrated PostsecondaryEducation Data System (IPEDS).

Figure 5 shows published tuition and ees by sector, adjusted or ination, as a

percentage o 1981-82 published prices. For example, a value o 368 indicates that

tuition and ees in 2011-12 are 3.68 times as high as they were in 1981-82, ater

adjusting or increases in the Consumer Price Index.

SOURCES: The College Board,Annual Survey o Colleges; NCES, IPEDS.

Ination-AdjustedPublishedTuition

andFeesRelativeto1981-82

0

50

100

150

200

250

300

350

400

Academic Year

11-1209-1007-0805-0603-0401-0299-0097-9895-9693-9491-9289-9087-8885-8683-8481-82

368

281

277

Public Two-Year

Public Four-Year

PrivateNonprotFour-Year

0%

1%

2%

3%

4%

5%

6%

AverageAnnualPercentageIncrease

Tuition and Fees Tuition and Fees

and Room and Board

PublicFour-Year

Private NonprotFour-Year

PublicTwo-Year

PublicFour-Year

Private NonprotFour-Year

2001-02 to 2011-121991-92 to 2001-021981-82 to 1991-927%

4.8%4.5%

6.1%

4.2%

2.5%

3.1% 3.2%

0.5%

2.6%2.4%

2.6%

5.6%

3.8%

2.4%

4.1%


14/32



Regional Variation in Charges

In 2011-12, average published tuition

and ees or public our-year colleges

range rom $7,056 in the South to

$10,494 in New England.

In 2011-12, average published tuition and ees or

public two-year colleges range rom $1,928 in the

West to $4,437 in New England.

Over the decade rom 2001-02 to 2011-12, dollar

increases in average public our-year tuition and

ees ranged rom $2,412 (in 2011 dollars) in the

Middle States region to $4,320 in the West.

Percentage increases ranged rom 37% in the

Middle States region to 109% in the West.

Room and board charges at public our-year

institutions are higher in the West than in other

regions. The New England region has the highest

average tuition, ees, and room and board

combined.

The largest dollar gap between average tuition

and ees at public two-year and public our-year

institutions is $6,362 in the West, where the

published price at two-year colleges is 23% o the

price at public our-year colleges and universities.

The smallest gap is $3,967 in the South. In New

England, the Middle States, and the South, thepublished price at two-year colleges is 42% to

46% o the price at public our-year institutions.

In addition to regional dierences, there are also

dierences by state in published tuition and ees

(see Tables 6C and 6D online at http://trends.

collegeboard.org).

FIGURE 6

Average Tuition and Fee and Room and Board (TFRB) Charges by College

Board Region and Sector, in Constant 2011 Dollars, 2001-02 and 2011-12

(Enrollment-Weighted)

The blue bars report 2001-02 prices and the orange

bars report 2011-12 prices. In each bar, the darker

segment corresponds to published tuition and ees

and the lighter segment corresponds to room and

board charges. The height o the entire bar reects

total TFRB charges.

NOTE: Public two-year room and board charges are basedon commuter housing and ood costs. States included inthe regions are as ollows: Middle States: DC, DE, MD, NJ,NY, PA, and PR; Midwest: IA, IL, IN, KS, MI, MN, MO, NE,ND, OH, SD, WI, and WV; New England: CT, MA, ME, NH, RI,and VT; South: AL, FL, GA, KY, LA, MS, NC, SC, TN, and VA;Southwest: AR, NM, OK, and TX; West: AK, AZ, CA, CO, HI, ID,MT, NV, OR, UT, WA, and WY.

SOURCE: The College Board,Annual Survey o Colleges.$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

WestSouthwestSouthNew England

Region

Private Nonprot Four-Year

Public Four-Year

Public Two-Year

MidwestMiddle States

$0

$5,000

$10,000

$15,000

$20,000

WestSouthwestSouthNew EnglandMidwestMiddle States

$0

$5,000

$10,000

$15,000

WestSouthwestSouthNew EnglandMidwestMiddle States

2001-02 Room and Board

2001-02 Tuition and Fees

2011-12 Room and Board

2011-12 Tuition and Fees

Tuition

and

Feesand

TFRBi

n

Constant2011Dollars

Tuition

and

Feesand

TFRB

in

Constant2011Dollars

Tuition

and

Feesand

TFRB

in

Constant2011Dollars

$3,711 $4,048

$8,801

$12,849

$2,743 $3,460

$5,950

$9,410

$3,091$4,437

$7,605

$12,042

$1,990 $3,089

$6,622

$9,711

$1,522 $2,160

$5,535

$7,695

$1,239 $1,928

$8,233

$10,161

$6,473$8,885

$8,053

$9,950

$14,526

$18,835

$5,715

$8,921

$6,706

$8,194$12,421

$17,115

$6,627

$10,494

$7,653

$9,964$14,280

$20,458

$4,329$7,056

$6,706

$7,986$11,035

$15,042

$4,350$7,433

$6,408

$7,409$10,758

$14,842

$3,970

$8,290

$8,596

$10,779$12,566

$19,069

$25,426

$30,181

$10,033

$11,373$35,459

$41,554

$22,157

$26,559

$7,430

$8,631$29,587

$35,190

$29,959

$35,720

$10,556

$11,966$40,515

$47,686

$20,046

$24,713

$7,430

$8,865$27,476

$33,578

$17,583

$25,260

$6,868

$8,604

$24,451

$33,864

$21,672

$28,067

$9,017

$10,168$30,689

$38,235

$7,504$6,304

$7,553

$6,005 $6,239$8,233

$11,215

$9,047

$10,644

$7,995 $7,761

$9,472


15/32



Average Net Price

Between 2006-07 and 2011-12, average published tuition and ees at public our-year colleges and

universities increased by about $1,800 in 2011 dollars, an annual rate o growth o 5.1% beyond

infation. The average net tuition and ees in-state students pay ater taking grant aid rom all sources

and ederal education tax credits and deductions into consideration increased by about $170 in 2011dollars, an annual rate o growth o 1.4% beyond infation.

FIGURE 7 Published Tuition and Fees, Net Tuition and Fees, and Room and Board in Constant 2011 Dollars, Full-Time

Undergraduate Students, 1996-97, 2001-02, 2006-07, and 2011-12 (Estimated)

Price

in

Constant2011Dollars

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

Private Nonprot Four-YearPublic Four-YearPublic Two-Year

11-1206-0701-0296-9711-1206-0701-0296-9711-1206-0701-0296-97

Net Tuition and FeesPublished Tuition and Fees

Room and Board

$0$6,4

00

$6,9

10

$7,2

60

$7,4

10

$6,0

00

$6,7

10

$7,8

10

$8,8

90

$7,7

20

$8,2

40

$9,0

90

$10,09

0

$2,1

10

$510 $

2,0

50

$560

$2,5

20

$30

$2,9

60

$810

$4,2

80

$1,9

10

$4,7

90

$1,3

30

$6,4

40

$2,3

20

$8,2

40

$2,4

90

$18,7

00

$10,6

30

$22,1

20

$12,6

50

$24,7

70

$13,5

20

$28,5

00

$12,9

70

$6,4

00

$6,9

10

$7,2

60

$7,4

10

$6,0

00

$6,7

10

$7,8

10

$8,8

90

$7,7

20

$8,2

40

$9,0

90

$10,09

0

The distribution o grant aid across sectors and between ull-time and part-time students is based on data rom theNational Postsecondary

Student Aid Study. The distribution or 2009-10 and later years includes estimates o the changes resulting rom the large increase in Pell

Grants that year. Because fnancial aid data or 2011-12 are not yet available, net prices or 2011-12 are estimated based on past years and

available inormation about changes in fnancial aid.

NOTE: Prices have been rounded to the nearest $10.

SOURCES: The College Board,Annual Survey o Colleges; Trends in Student Aid 2011; calculations by the authors.

Between 2006-07 and 2011-12, room andboard charges increased by $1,080, leadingto an increase o $1,250 (in 2011 dollars) inaverage total net price or ull-time in-statestudents at public our-year institutions.

Average published tuition and ees atprivate nonprot our-year colleges anduniversities are about $3,730 higher (in2011 dollars) in 2011-12 than they werein 2006-07, but the average net tuition

paid by ull-time students in this sectordeclined by $550 in infation-adjusteddollars over this ve-year period.

When room and board costs are alsoconsidered, average total net price orstudents at private nonprot our-yearinstitutions increased by about $450 (in2011 dollars) between 2006-07 and 2011-12.

On average, grant aid rom all sourcesplus ederal education tax credits and

deductions cover tuition and ees or ull-time students enrolled in public two-yearcolleges, leaving about $810 or otherexpenses. However, when ood andhousing costs are also considered, theaverage net price or ull-time studentsat public two-year colleges in 2011-12 isabout $6,600.

In 2011-12, ull-time students at privatenonprot our-year institutions receive an

estimated average o about $15,530 in grantaid rom all sources and ederal tax benets.

In 2011-12, ull-time students at public our-year colleges and universities receive anestimated average o about $5,750 in grantaid rom all sources and ederal tax benets.

In 2011-12, ull-time students at publictwo-year colleges receive an estimatedaverage o about $3,770 in grant aid romall sources and ederal tax benets.

ALSO IMPORTANT:

Large increases in ederal Pell Grants and

veterans benets in 2009-10, combined

with the 2009 implementation o the

American Opportunity Tax Credit, had a

signicant impact on the net prices paid by

students who benet rom these programs.

Some students pay much less than the

net prices reported here, while students

who do not receive nancial aid do notbenet rom the dierence between

published prices and net prices.

In 2011-12, net tuition and ees or ull-

time students at or-prot institutions,

ater considering grant aid rom all

sources and ederal education tax credits

and deductions, average about $4,700,

compared to published tuition and ees o

$14,490.


16/32



Net Price Public Institutions

While average published tuition and

ees or ull-time students ranged rom

$5,150 at open admission institutions

in 2007-08 to $8,650 at the mostselective public our-year colleges

and universities, the average net

prices students paid, ater subtracting

grant aid rom all sources and ederal

education tax credits and deductions,

ranged rom $640 to $4,280.

Three-quarters o ull-time students at open

admission public our-year colleges, and about

60% o those at all other institutions in this

sector, received grants or tax benets in 2007-08

to help them pay or college.

In 2007-08, the average percentage o published

tuition and ees covered by total grants rom all

sources plus ederal tax credits and deductions

ranged rom 51% or the 24% o ull-time

students enrolled at the very selective public our-

year colleges and universities, to 88% or the 7%

o ull-time students enrolled at open enrollment

institutions.

When other costs o attendance, including room

and board, books and supplies, transportation,

and miscellaneous expenses, are included,

grants and ederal tax savings covered about

20% o expenses or public our-year college

students in 2007-08.

In 2007-08, 57% o ull-time ull-year students at

public two-year colleges received grants and/or

tax benets. Averaged across all students, these

subsidies more than covered tuition and ees,

with the remainder being applied to other costs o

attendance. While only 36% o part-time students at

public two-year colleges received these subsidies,

averaged across all students, the unding sources

covered 97% o average tuition and ees.

ALSO IMPORTANT:

Both ederal grant aid and ederal education tax credits

have increased signicantly since 2007-08. The number

o ederal Pell Grant recipients increased rom 5.5 million

in 2007-08 to 9.1 million in 2010-11. The average Pell

Grant increased rom $2,473 to $3,828 over this time

period. (The College Board, Trends in Students Aid 2011)

The number o taxpayers beneting rom ederal

education tax credits and deductions increased rom

8.3 million in 2007-08 to about 12 million in 2010-11. The

average subsidy through the tax code increased rom

$800 to more than $1,200.

FIGURE 8A

Net Prices o Full-Time Full-Year Undergraduate Students at Public Four-Year

Institutions by Selectivity (with Percentage o Students in Each Selectivity

Category), 2007-08

FIGURE 8B

Net Prices o Undergraduate Students at Public Two-Year Institutions byAttendance Status (with Percentage o Students in Each Attendance Status

Category), 2007-08

NOTE: Numbers in parentheses on the vertical axis indicate percentages o studentsenrolled ull-time and part-time. Only ull-time students enrolled ull-year at one institutionare included. All part-time students are included. Federal grants include veterans beneftsand Department o Deense grants. Federal tax benefts include benefts received rom taxdeductions and tax credits.

SOURCE: NCES, NPSAS, 2008.

Figures 8A and 8B have dierent horizontal axis scales. Public two-year prices are

too low to illustrate clearly on the scale reaching $25,000 in Figure 8A.

$0 $5,000 $10,000 $15,000 $20,000 $25,000

ModeratelySelective (56%)

Selectivity

Prices and Grant Aid

OpenAdmission (7%)

MinimallySelective (12%)

VerySelective (24%)

OutsideGrants

InstitutionalGrants

StateGrants

FederalGrants andTax Benets

Net Tuitionand Fees

NontuitionExpenseBudget

$11,568

$643

$2,277

$1,062

$701 $465$16,716

$10,931 $1,941

$1,846

$965

$922

$406

$17,011

$11,996 $2,711

$1,590

$924

$1,209

$427

$18,857

$11,996 $4,278

$1,391

$1,241

$1,268

$473

$20,647

$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000


AttendanceStatus

$14,000

Full-Time (20%)

Part-Time (80%)

OutsideGrants

InstitutionalGrants

StateGrants

FederalGrants and

Tax Benets

Net Tuitionand Fees

Net NontuitionExpense

Budget

$4,858

$22

$521 $49

$79$154

$5,683

$10,083

$0

$1,769

$412 $152

$213

$12,629

NOTE: Numbers in parentheses on the vertical axis indicate the percentage o studentsenrolled in institutions in each selectivity category. Selectivity categories are based on theIPEDSdefnition, which incorporates the percentage o applicants admitted and SAT/ACTscores o enrolled students. Federal grants include veterans benefts and Department oDeense grants. Federal tax benefts include benefts received rom tax deductions and taxcredits. Only ull-time students who attended one institution in 2007-08 are included.



17/32



Net Price Private Institutions

While average published tuition and

ees or ull-time students in the private

nonprot our-year sector ranged rom

$14,800 at open admission institutionsin 2007-08 to $28,080 at the most

selective institutions, the average net

prices students paid, ater subtracting

grant aid rom all sources and ederal

education tax credits and deductions,

ranged rom $8,250 to $16,580.

Three-quarters o ull-time students at the most

selective private institutions, and over 80% o

those at all other private nonprot institutions,

received grants or tax benets in 2007-08 to helpthem pay or college.

In 2007-08, the average percentage o published

tuition and ees covered by total grants rom all

sources plus ederal tax credits and deductions

ranged rom 41% or the 38% o ull-time

students enrolled at the most selective private

nonprot institutions, to 50% or the 46%

enrolled at moderately selective colleges and

universities.

When other costs o attendance, including room

and board, books and supplies, transportation,

and miscellaneous expenses, are included, grants

and ederal tax savings covered about 30%

o expenses or students at private nonprot

colleges and universities in 2007-08.

In 2007-08, 92% o ull-time ull-year students

at or-prot institutions received grants and tax

benets covering an average o 31% o their

tuition and ees. Among part-time students in

this sector, 91% received these subsidies, which

covered 27% o tuition and ees.

FIGURE 9A

Net Prices o Full-Time Full-Year Undergraduate Students at Private Nonproft

Four-Year Institutions by Selectivity (with Percentage o Students in Each

Selectivity Category), 2007-08

FIGURE 9B

Net Prices o Undergraduate Students at For-Proft Institutions by Attendance

Status (with Percentage o Students in Each Attendance Status Category), 2007-08

NOTE: Numbers in parentheses indicate percentages o students enrolled ull-time and part-time. Only ull-time students enrolled ull-year at one institution are included. All part-timestudents are included. Federal grants include veterans benefts and Department o Deensegrants. Federal tax benefts include benefts received rom tax deductions and tax credits.


$0 $10,000 $20,000 $30,000 $40,000 $50,000

Selectivity


VerySelective (38%)

ModeratelySelective (46%)

MinimallySelective (11%)

OpenAdmission (5%)

OutsideGrants

InstitutionalGrants

StateGrants

FederalGrants andTax Benets

Net Tuitionand Fees

NontuitionExpenseBudget

$12,953

$11,439

$12,809

$10,568

$16,577

$10,823

$8,886

$8,247

$1,597

$1,937

$2,230

$2,596

$849

$1,175

$1,446

$783

$8,154

$7,072

$4,063

$2,615

$904

$823

$798

$559

$41,034

$33,269

$30,232

$25,368

$783


AttendanceStatus

$10,000 $20,000 $30,000 $40,000 $50,000

Full-Time (56%)

Part-Time (44%)

$0

Outside

Grants

Institutional

Grants

State

Grants

Federal

Grants andTax Benets

Net Tuition

and Fees

Nontuition

ExpenseBudget

$16,706

$6,798

$8,281

$6,060

$2,821

$1,822

$223

$143

$106

$108

$501

$202

$28,638

$15,133

NOTE: Numbers in parentheses on the vertical axis indicate the percentage o studentsenrolled in institutions in the selectivity category. Selectivity categories are based on theIPEDSdefnition, which incorporates the percentage o applicants admitted and SAT/ACTscores o enrolled students. Federal grants include veterans benefts and Department oDeense grants. Federal tax benefts include benefts received rom tax deductions and taxcredits. Only ull-time students who attended one institution in 2007-08 are included.



18/32



Institutional Revenues Public Appropriations

State appropriations per ull-time

equivalent (FTE) student declined

by 9% in infation-adjusted dollars

between 2007-08 and 2008-09, by 6% in2009-10, and by 4% in 2010-11. Average

tuition and ees at public our-year

colleges rose by 9% beyond infation

in 2009-10 and by 7% in 2010-11.

Ater increasing by 6% in the 1980s and by 5% in

the 1990s, state appropriations per FTE student

declined by 23% in infation-adjusted dollars over

the decade rom 2000-01 to 2010-11.

The 18% real decline in state appropriations per

FTE student rom 2007-08 to 2010-11 was thelargest three-year decline in the 30 years o data

reported here.

Federal unds rom the American Recovery and

Reinvestment Act supplemented state unds

over three scal years, rom 2008-09 through

2010-11. As Figure 10A shows, the decline in

total appropriations was smaller than it would

otherwise have been in 2008-09 and 2009-10.

The decline in ederal unds rom $657 million

in 2009-10 to $308 million in 2010-11 caused a

sharper decline in overall educational unding

than in state unding that year.FTE enrollment in public colleges and universities

increased by 9% rom 1990-91 to 2000-01 and by

33% over the most recent decade. Enrollment

grew by 7% in 2009-10, the largest one-year

increase since 1975-76.

ALSO IMPORTANT:

From all 2000 to all 2008, total FTE enrollment in

public institutions in the United States increased by

22%. Enrollment growth ranged rom 5% in Louisiana

and 10% in Tennessee and Illinois, to 43% in Georgia

and 46% in Nevada. (NCES, Digest o EducationStatistics 2010, Table 227)

Between 2009-10 and 2010-11, total state

appropriations or higher education, including ederal

stimulus unds, increased by 25% in Wyoming,

by 7% in Caliornia, and by 6% in North Carolina.

Appropriations declined by more than 10% in six

states. (Illinois State University, Grapevine, http://

www.grapevine.ilstu.edu/ty_state_ summary.htm)

Between 2009-10 and 2010-11, total appropriations

increased by more than 1% in 12 states, declined by

more than 1% in 28 states, and changed by less than

1% in 10 states.

FIGURE 10A

Annual Percentage Changes in State Appropriations or Higher Education per

Full-Time Equivalent (FTE) Student and Changes in Ination-Adjusted Tuition

and Fees at Public Four-Year Institutions, 1980-81 to 2010-11

FIGURE 10B

State Appropriations or Higher Education: Total Appropriations in Constant

2010 Dollars (in Billions), Appropriations per Public FTE Student in Constant

2010 Dollars, and Public FTE Enrollment (in Millions), 1980-81 to 2010-11

NOTE: Fall 2010 FTE enrollment was based on preliminaryIPEDSnumbers. Appropriationsreported here are or institutional operating expenses, not or capital expenditures. Fundingincludes both tax revenues and other state unds allocated to higher education.

SOURCES: The College Board,Annual Survey o Colleges; Illinois State University,Grapevinereports; NCES, Digest o Education Statistics 2010, Table 226; calculations by authors.

The 0% line corresponds to changes in appropriations that compensate only or

the overall rate o ination in consumer prices. Negative percentage changes

indicate declines in ination-adjusted appropriation amounts. The dotted line

represents the percentage change that would have occurred were ederal stimulus

unds not appropriated in 2008-09 through 2010-11.

-15%

-10%

-5%

0%

5%

10%

15%

10-1104-0598-9992-9386-87 07-0801-0295-9689-9083-8480-81

Percentage

Change

Academic Year

Excluding Federal Stimulus Funds

Tuition and Fees

Appropriations per FTE

$0

$20

$40

$60

$80

$100

($)0

($)2

($)4

($)6

($)8

($)10

$120 ($)12

PublicFTEEnrollment(inMillions)

andAppropriationsperFTE

(inThousandsofConstant2010Dollars

)

TotalAppropriations

(inBillionsofConstant2010Dollars)

10-1104-0598-9992-9386-87 07-0801-0295-9689-9083-8480-81

Academic Year

Total Appropriations (Billions) Excluding Federal Stimulus Funds

Public FTE Enrollment (Millions)

Appropriations per FTE (Thousands)


19/32



Institutional Revenues Public Appropriations

FIGURE 11A

Average State Appropriations or Higher Education per $1,000 in Personal

Income, 1990-91 to 2010-11

SOURCES: Illinois State University,Grapevinereports; calculations by the authors.

SOURCE: Illinois State University, 2010-11Grapevinedata, Table 5.

Average state appropriations per $1,000 o personal income

declined rom $8.22 in 1990-91 to $7.25 in 2000-01 and

to $6.33 in 2010-11. Excluding the ederal stimulus unds

provided to states, the state unding or higher educationwas $6.11 per $1,000 in personal income in 2010-11.

In 2010-11, when average state appropriations

(including ederal stimulus unds) per $1,000 o

personal income were $6.33, New Hampshire

provided $2.44 and Colorado provided $3.57 per

$1,000 o personal income or higher educationoperations. At the other end o the spectrum,

appropriations per $1,000 o personal income were

$12.73 in New Mexico and $14.38 in Wyoming.

New Hampshire had the lowest appropriations

relative to personal income every year rom

1990-91 through 2010-11. Colorado, Connecticut,

Massachusetts, and Vermont have each ranked

second lowest or some o these years.

New Mexico had the highest appropriations relative

to personal income in most years rom 1990-91

through 2009-10, but Wyoming and Mississippi

have also ranked rst. In addition to these states,

Alabama, Alaska, and North Carolina have ranked

second highest in some o these years.

Over the decade rom 2000-01 to 2010-11, state

appropriations per $1,000 in personal income

declined by 41% in Iowa and by 37% in Oregon.

Appropriations per $1,000 in personal income

declined by 20% or more in 16 additional states

(not shown in graphs).

Over the decade rom 2000-01 to 2010-11,

appropriations per $1,000 in personal income

increased by 32% in Wyoming, by 25% in Georgia,

and by smaller percentages in Alaska, Connecticut,

Louisiana, Nevada, North Carolina, North Dakota,and Tennessee (not shown in graphs).

FIGURE 11B State Appropriations or Higher Education per $1,000 in Personal Income by State, 2010-11 (Including Federal

Stimulus Funds)

$0

$2

$4

$6

$8

$10

10-1102-03 06-0798-9994-95 04-05 08-0900-01

Academic Year

96-9792-9390-91

Appro

priationsper

$1,0

00PersonalIncome

Excluding Federal Stimulus Funds

$0

$2

$4

$6

$8

$10

$12

$14

Appropriationsper$1

,000PersonalIncome

State

$16

Wyom

ing

New

Mex

ico

Nort

hCaro

lina

Nort

hDa

kota

Miss

iss

ipp

i

Alas

ka

Alabama

Arkansas

Hawa

ii

Ne

bras

ka

Kentuc

ky

West

Virg

inia

Georg

ia

Lou

isiana

Uta

h

Oklahoma

Ca

liforn

ia

Tennessee

Kansas

Indiana

Ida

ho

Texas

Wiscons

in

Iowa

U.S.

South

Da

kota

South

Caro

lina

Minnesota

Montana

De

laware

Illino

is

Ma

ine

Mary

lan

d

Neva

da

Flori

da

Connecticut

Michigan

Virg

inia

Was

hington

Ohio

New

York

Arizona

Missouri

New

Jersey

Oregon

Pennsy

lvan

ia

Rho

de

Islan

d

Massac

husetts

Vermont

Co

lora

do

New

Hamps

hire

$14.3

8

$12.7

3

$9.4

7

$8.1

8

$6.56

$6.1

0

$6.3

3

$5.3

3$5.9

0

$4.3

8

$2.4

4 $3.5

7

Personal income is a measure o the fscal capacity o the state. The Bureau o

Economic Analysis (BEA) measure o personal income is the sum o income rom

all sources received by individuals. It includes earnings (net o social insurance

taxes but not income taxes) plus interest, dividends, rental income, and transer

payments received by individuals.


20/32



Institutional Revenues

At all types o public institutions, the

average share o revenues coming rom

net tuition increased between 1998-99

and 2008-09, while the share coming romstate and local appropriations decreased.

Among public doctoral institutions, net tuitionas a percentage o total revenues rom tuition,appropriations, and contracts, increased rom25% in 1998-99 to 32% in 2008-09. State andlocal appropriations decreased rom 49% to 34%o revenues rom these combined sources overthis decade.

Net tuition revenue constitutes a much largerpercentage o revenues or private nonprotcolleges and universities than or publicinstitutions. In 2008-09, tuition contributed 61% o

revenues rom the combination o the categoriesincluded in Figure 12B or private doctoraluniversities, 95% or private masters universities,and 93% or private bachelors colleges.

Revenue rom private gits, investment returns,and endowment income supplements therevenue sources shown in Figures 12A and 12B.For private doctoral universities, this additionalrevenue was approximately 76% as large as thesum o the revenue sources included in Figure 12Bover the decade. The corresponding percentagewas 69% or private bachelors colleges, but only22% or private masters institutions.

Figure 12C shows average institutional revenuerom gits, investment income, and endowmentassets over a decade. Investment income and thechanges in endowment assets are highly variablerom year to year. At private doctoral universities,revenue rom this source ell, on average, rom188% o the total revenues rom the sourcesincluded in Figure 12B in 1999-2000 to 28% in2000-01 and was more than 50% higher than thetotal rom the other revenue sources in 2006-07.Losses rom this source exceeded combined

revenues rom the other sources in 2008-09.

ALSO IMPORTANT:

Changes in accrued asset value are not a reliablemeasure o the resources available or annual institutionalbudgets. It is common practice or institutions to spenda xed percentage o their endowment values eachyear, but to smooth spending by using a three-yearmoving average o the endowment value.

Colleges and universities also receive revenues romauxiliary enterprises, hospitals, and independentoperations. Revenues rom enterprises such as dormitoriesand dining halls are usually dedicated to running thoseoperations. These revenues are largest at doctoraluniversities, many o which have hospitals. In 2008-09,average revenue per FTE student rom these sourcesranged rom $28,880 at private doctoral universities to$6,140 at private bachelors colleges, and to $980 atpublic two-year colleges, which rarely have dormitories.

Revenue rom private gits, investment income, and endowment returns ismeasured by the change in asset value rom one year to the next. Figure 12C showsthe ratio o the sum o revenue received rom private gits, investment returns,and endowment income across all years rom 1998-99 to 2008-09 to the sum orevenue received rom net tuition and ees and ederal, state, and local grants andappropriations over these 11 years. In some years, investment income was negative.

NOTE: The institutional averages reported here are weighted by FTE enrollments. Theaverages reported by the Delta Cost Project are unweighted averages across institutions.Percentages may not sum to 100 because o rounding.

SOURCE: The Delta Cost Project; calculations by the authors.

$0

$10,000

$20,000

$30,000

$40,000

Revenue

in

Constant2009Dollars

Academic Year and Institution Type

Public Two-YearPublic BachelorsPublic MastersPublic Doctoral

08-0903-0498-9908-0903-0498-9908-0903-0498-9908-0903-0498-99

27%26%22%41%37%31%43%38%33%32%28%25%

57%58%64%42%47%56%

43%47%56%

34%38%49% 15%16%14%

17%16%13%

14%14%11%

34%35%

25%

State and Local Appropriations

Federal Appropriations and Federal,State, and Local Grants and Contracts

Net Tuition and Fee Revenue

$0

$10,000

$20,000

$30,000

$40,000

Revenue

in

Constant2009Dollars

Academic Year and Institution Type

Private BachelorsPrivate MastersPrivate Doctoral

08-0903-0498-9908-0903-0498-9908-0903-0498-99

93%91%91%95%93%92%61%57%61%

0%0%

0%0%

1%1%

1%1%

1% 7%8%9%

5%7%7%

38%41%

38%

State and Local Appropriations

Federal Appropriations and Federal,State, and Local Grants and Contracts

Net Tuition and Fee Revenue

0%

20%

40%

80%

60%

100%

Percentage

Institution TypePrivatePublic

BachelorsMastersDoctoralTwo-YearBachelorsMastersDoctoral

69%

22%

76%

2%4%3%10%

FIGURE 12C

Aggregate Total Revenue rom Private Gits, Investment Returns, and

Endowment Income as a Percentage o Aggregate Revenue rom Other

Sources, 1998-99 to 2008-09

FIGURE 12B

Institutional Revenues per FTE Student in Constant 2009 Dollars at PrivateNonproft Institutions, by Revenue Source, 1998-99 to 2008-09, Selected Years

FIGURE 12A

Institutional Revenues per FTE Student in Constant 2009 Dollars at Public

Institutions, by Revenue Source, 1998-99 to 2008-09, Selected Years


21/32



Institutional Revenues and Expenditures

In all sectors with the exception o private doctoral universities, net tuition and ee revenue grew more

rapidly than educational and related expenditures between 2002-03 and 2008-09, and subsidies per

ull-time equivalent (FTE) student declined.

Ater adjusting or infation, net tuition and ee revenue

per student increased at an average annual rate o 5.3%

between 2002-03 and 2008-09 at public bachelors colleges,

4.8% at public doctoral universities, 4.4% at public masters

universities, and 3.6% at public two-year colleges.

Net tuition and ee revenue increased at a slower rate in the

private sector than in the public sector between 2002-03 and

2008-09. Ater adjusting or infation, the average annual rate

o increase was 2.2% at private masters institutions, 2.1%

at private bachelors colleges, and 1.9% at private doctoral

universities.

In 2008-09, average net tuition and ee revenue per FTE

student ranged rom $2,930 at public two-year colleges to

$21,860 at private doctoral universities.

Educational and related expenditures grew most rapidly at

private research universities between 2002-03 and 2008-09

The percentages on the horizontal axis o the graph correspond to the percentages o educational and related expenses covered by nettuition and ees. For example, 50% o the $16,730 in average expenditures per FTE student at public research universities in 2008-09 wascovered by net tuition and ee revenues, and the other 50% was covered by state and local appropriations and other revenue sources.

Net tuition revenue is the amount o revenue an institution takes in rom tuition and ees, net o all institutional grant aid provided tostudents. Some o this revenue comes in the orm o fnancial aid to students rom ederal and state governments and other sources.

Educational expenditures include spending on instruction and student services, and the education share o spending on central academicand administrative support as well as operations and maintenance. The sum o educational and related expenses, research and relatedexpenses, public service and related expenses, and scholarships and ellowships equals education and general expenses. Expenditures orboth undergraduate students and graduate students are included in these estimates.

NOTE: Averages represent FTE enrollment-weighted averages o educational and related expenses per FTE student and o net tuition revenue per FTE student.Averages reported by the Delta Cost Project are unweighted averages across institutions. Because o dierences in undergraduate and graduate tuition; tuitionpaid by part-time, out-o-state, and international students; and accounting

trends in college pricing 2011 from the college board

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