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Who Subsidizes Whom? An Analysis of Educational Costs and Revenues

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Title: Who Subsidizes Whom? An Analysis of Educational Costs and Revenues
Language: English
Authors: Gillen, Andrew, Denhart, Matthew, Robe, Jonathan, Center for College Affordability and Productivity (CCAP)
Source: Center for College Affordability and Productivity (NJ1). 2011.
Availability: Center for College Affordability and Productivity. 1055 Thomas Jefferson Street NW Suite L 26, Washington, DC 20007. Tel: 202-621-0536; e-mail: ccap@theccap.org; Web site: http://centerforcollegeaffordability.org
Peer Reviewed: N
Physical Description: PDF
Page Count: 21
Publication Date: 2011
Document Type: Reports - Evaluative
Education Level: Higher Education
Descriptors: Educational Finance, Grants, Expenditure per Student, Program Costs, Tuition, Income, Theory Practice Relationship, Higher Education, School Accounting, Institutional Characteristics
Abstract: Conventional wisdom holds that colleges and universities heavily subsidize their students. This assertion seems correct, given that total spending per student is almost always in excess of per student tuition payments. However, as the authors show in this report, the conventional wisdom is wrong because it inappropriately compares only one revenue source--tuition payments--to total institutional spending. Such a comparison is seriously misleading because institutional spending encompasses far more than just the educational expenditures that tuition revenues are ostensibly designed to cover. The more logical comparison--and the one which the authors make here--is between what colleges and universities are paid to provide an education versus what those institutions actually spend to provide that education. In many cases student tuition and third-party payments on behalf of students easily cover the portion of spending that is actually used for educational activities. Between 52% and 76% of all students attend institutions where educational payments exceed educational spending. For four-year students, this figure is between 59% and 87%, and for two-year students, it is between 24% and 63%. Appended are: (1) Data Sources and Descriptions; and (2) Methodological Description. (Contains 1 figure, 5 tables, and 13 footnotes.)
Abstractor: ERIC
Entry Date: 2012
Accession Number: ED536150
Database: ERIC
FullText Text:
  Availability: 0
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  – Url: https://eric.ed.gov/contentdelivery/servlet/ERICServlet?accno=ED536150
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  Data: Center for College Affordability and Productivity. 1055 Thomas Jefferson Street NW Suite L 26, Washington, DC 20007. Tel: 202-621-0536; e-mail: ccap@theccap.org; Web site: http://centerforcollegeaffordability.org
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  Data: Conventional wisdom holds that colleges and universities heavily subsidize their students. This assertion seems correct, given that total spending per student is almost always in excess of per student tuition payments. However, as the authors show in this report, the conventional wisdom is wrong because it inappropriately compares only one revenue source--tuition payments--to total institutional spending. Such a comparison is seriously misleading because institutional spending encompasses far more than just the educational expenditures that tuition revenues are ostensibly designed to cover. The more logical comparison--and the one which the authors make here--is between what colleges and universities are paid to provide an education versus what those institutions actually spend to provide that education. In many cases student tuition and third-party payments on behalf of students easily cover the portion of spending that is actually used for educational activities. Between 52% and 76% of all students attend institutions where educational payments exceed educational spending. For four-year students, this figure is between 59% and 87%, and for two-year students, it is between 24% and 63%. Appended are: (1) Data Sources and Descriptions; and (2) Methodological Description. (Contains 1 figure, 5 tables, and 13 footnotes.)
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      – SubjectFull: Grants
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      – SubjectFull: Expenditure per Student
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      – SubjectFull: Program Costs
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      – SubjectFull: Tuition
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      – SubjectFull: Income
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      – SubjectFull: Higher Education
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      – SubjectFull: Institutional Characteristics
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      – TitleFull: Who Subsidizes Whom? An Analysis of Educational Costs and Revenues
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