Learning Resources

Abstract: This article explains the cost of education in public research universities. “Price,” meaning “tuition,” is often incorrectly substituted for “cost,” meaning expenditures by the university that make the education possible. University cost is disaggregated to enable readers to distinguish between the costs associated with providing education to students and the costs of other non-educational activities that tend to produce their own revenue. While tuition has increased rapidly, real cost per student for providing education has been roughly constant for nearly 20 years. Increased revenue from tuition has been almost precisely offset by reduced revenue from state appropriations.

Abstract: Public discussion of higher education costs frequently confuses price with expenditure. This article examines factors associated with increases in the sticker price of a college education and the expenditures incurred by institutions in delivering that education. The discussion suggests that while growth in college tuition is real, access to higher education has not been reduced. Moreover, data indicate that colleges and universities have been responsible fiscal stewards in containing costs over which they have control.