Higher Education
Tuition Continues to Rise, but Patterns Vary by Institution Type, Enrollment, and Educational Expenditures Gao ID: GAO-08-245 November 28, 2007Higher education has increasingly become critical to our nation's cultural, social, and economic well-being, with 90 percent of the fastest-growing jobs in the knowledge economy requiring some postsecondary education. While a college graduate can expect to earn, on average, approximately $1 million more over the course of his or her working life than those with a high school diploma, most students and their families can expect to pay more on average for college than they did just a year ago. Moreover, many are concerned that the increases in the cost of college may be discouraging large numbers of individuals, particularly minority and low-income individuals, from pursuing higher education. The topic of college affordability continues to be an issue of great concern. Various policymakers, national associations, and philanthropic foundations have documented the growth in college tuition and its potentially adverse effects on access to higher education and rates of degree completion. Recent years have witnessed the introduction of many federal-, state-, and institution-level initiatives aimed at curbing tuition increases, yet tuition continues to rise. Congress asked GAO to provide information on trends in higher education enrollments, tuition and fees, and institutional expenditures on education- related services that students receive by addressing the following questions: (1) What have been the patterns in college enrollment over the past decade and do these patterns differ by race? (2) What have been the patterns in the types of schools students attend and do these patterns differ by race? (3) How much have tuition and fees increased over the past decade across different types of higher education institutions? (4) To what extent have increases in tuition and fees been associated with increases in spending by institutions on education?
More students are enrolling in college than ever before, and an increasingly larger percentage of all students are minorities. Between the 1995-1996 and 2006-2007 school years, overall enrollment in U.S. higher education institutions increased by about 19 percent, or more than an estimated 2.2 million students. At the same time, minority enrollments have increased at a much faster rate than White enrollments. Between school years 2000-2001 and 2006-2007, enrollment of Hispanic students grew the fastest, increasing by approximately 25 percent. While the types of schools in which students enroll have largely remained stable, the distribution of enrollment has shifted for some minority groups. Over the last 12 years, the distribution of students across different types of institutions shifted for some minority groups toward 2-year schools. By the 2006-2007 school year, for some minority groups, the majority of students were enrolled in 2-year schools. Nearly 60 percent of all Hispanic students were enrolled in 2-year schools, as were 50 percent of Asian/Pacific Islander, Alaskan Native, and Black students. In contrast, 43 percent of White/non-Hispanic students attended 2-year schools. Although average tuition increased for all institution types, the smallest tuition increases occurred at the types of institutions that enroll the largest proportion of college students. Between the 1995-1996 and 2006-2007 school years, tuition at private institutions increased the most in dollars, while tuition at public institutions increased the most in percentage points. When enrollment and tuition trends are jointly considered, overall, the majority of students today attend institutions that have the lowest average tuition. Between the 2000-2001 and 2005-2006 school years, increases in average tuition were matched or exceeded by increases in average institutional spending on education at private institutions, but not at public institutions. institutions. Though average tuition at private schools increased the most in dollars, average spending on education by private schools grew faster, in percentage points, than average spending at comparable public schools. Indeed, when comparing trends in tuition with trends in education-related expenditures, at private institutions, tuition increases have been matched by proportionally equal or greater spending on educationrelated services.
GAO-08-245, Higher Education: Tuition Continues to Rise, but Patterns Vary by Institution Type, Enrollment, and Educational Expenditures
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Report to the Chairman, Committee on Education and Labor, House of
Representatives:
United States Government Accountability Office:
GAO:
November 2007:
Higher Education:
Tuition Continues to Rise, but Patterns Vary by Institution Type,
Enrollment, and Educational Expenditures:
GAO-08-245:
Contents:
Letter:
Appendix I: Briefing Slides:
Appendix III: PEDS Variables:
Appendix III: Carnegie Classifications:
Related GAO Products:
[End of section]
United States Government Accountability Office:
Washington, DC 20548:
November 28, 2007:
The Honorable George Miller:
Chairman:
Committee on Education and Labor:
House of Representatives:
Dear Mr. Chairman:
Higher education has increasingly become critical to our nation's
cultural, social, and economic well-being, with 90 percent of the
fastest-growing jobs in the knowledge economy requiring some
postsecondary education. While a college graduate can expect to earn,
on average, approximately $1 million more over the course of his or her
working life than those with a high school diploma, most students and
their families can expect to pay more on average for college than they
did just a year ago. Moreover, many are concerned that the increases in
the cost of college may be discouraging large numbers of individuals,
particularly minority and low-income individuals, from pursuing higher
education.
The topic of college affordability continues to be an issue of great
concern. As far back as 1997, the congressionally established National
Commission on the Cost of Higher Education suggested that the public
anxiety about rising tuition was already on par with "anxiety about how
to pay for health care or housing" and that "financing a college
education is a serious and troublesome matter to the American
people."[Footnote 1] Since that time various policymakers, national
associations, and philanthropic foundations have documented the growth
in college tuition and its potentially adverse effects on access to
higher education and rates of degree completion. Recent years have
witnessed the introduction of many federal-, state-, and institution-
level initiatives aimed at curbing tuition increases, yet tuition
continues to rise.
You asked us to provide information on trends in higher education
enrollments, tuition and fees, and institutional expenditures on
education-related services that students receive by addressing the
following questions:
1. What have been the patterns in college enrollment over the past
decade and do these patterns differ by race?
2. What have been the patterns in the types of schools students attend
and do these patterns differ by race?
3. How much have tuition and fees increased over the past decade across
different types of higher education institutions?
4. To what extent have increases in tuition and fees been associated
with increases in spending by institutions on education?
We briefed the committee staff on our results on October 31, 2007. This
report formally conveys the information provided during that briefing.
In summary, we reported the following findings:
* More students are enrolling in college than ever before, and an
increasingly larger percentage of all students are minorities. Between
the 1995-1996 and 2006-2007 school years, overall enrollment in U.S.
higher education institutions increased by about 19 percent, or more
than an estimated 2.2 million students.[Footnote 2] During this same
time period, the percentage of students studying full-time increased
from 58 percent to 62 percent. In the 2006-2007 school year, more than
four out of five college students were enrolled in public institutions.
The largest proportion of students--46 percent--was enrolled in public
2-year schools, where enrollment grew by more than 20 percent over the
prior decade.
At the same time, minority enrollments have increased at a much faster
rate than White enrollments. Between school years 2000-2001 and 2006-
2007, enrollment of Hispanic students grew the fastest, increasing by
approximately 25 percent. During the same time period, Black and Asian/
Pacific Islander enrollments both increased by approximately 15
percent. In contrast, the enrollment growth for White students was less
than 3 percent.
* While the types of schools in which students enroll have largely
remained stable, the distribution of enrollment has shifted for some
minority groups. Over the last 12 years, the distribution of students
across different types of institutions shifted for some minority groups
toward 2-year schools. Specifically, between the 1995-1996 and 2006-
2007 school years, Hispanic enrollments in 2-year schools increased by
4 percentage points, while their enrollments in both non-doctoral-
granting public and private 4-year schools each decreased by 2
percentage points. During the same time period, Black enrollments in 2-
year schools increased by 3 percentage points, while their enrollments
in non-doctoral-granting public schools decreased by 3 percentage
points. By the 2006-2007 school year, for some minority groups, the
majority of students were enrolled in 2-year schools. Nearly 60 percent
of all Hispanic students were enrolled in 2-year schools, as were 50
percent of Asian/Pacific Islander, Alaskan Native, and Black students.
In contrast, 43 percent of White/non-Hispanic students attended 2-year
schools.
* Although average tuition increased for all institution types, the
smallest tuition increases occurred at the types of institutions that
enroll the largest proportion of college students. Between the 1995-
1996 and 2006-2007 school years, tuition at private institutions
increased the most in dollars, while tuition at public institutions
increased the most in percentage points. Tuition increased in dollars
the least at 2-year public schools--by $420, from $2,091 to $2,510--and
increased the most at private 4-year research/doctoral institutions--by
$7,330, from $19,185 to $26,515. Tuition increased in percentage points
the least at 2-year private schools--by 14 percent--and increased the
most at public, 4-year research/doctoral schools--by 57 percent.
When enrollment and tuition trends are jointly considered, overall, the
majority of students today attend institutions that have the lowest
average tuition. During the 2006-2007 school year, nearly half of all
students attended institutions where the average annual in-state
tuition and fees was less than $2,550, and more than 60 percent of all
students attended institutions where the tuition and fees was less than
$4,750 per year. In contrast, relatively few students attend
institutions with the highest average tuition. Only 3 out of every 100
students were enrolled at institutions where the average annual tuition
and fees was more than $25,000 per year.[Footnote 3]
* Between the 2000-2001 and 2005-2006 school years, increases in
average tuition were matched or exceeded by increases in average
institutional spending on education at private institutions, but not at
public institutions. Though average tuition at private schools
increased the most in dollars, average spending on education by private
schools grew faster, in percentage points, than average spending at
comparable public schools. During the 1995-1996 school year, public 4-
year research/doctoral institutions spent, on average, about $370
million on education-related services, which at that time was
approximately $33 million more than that spent on average by private 4-
year research/doctoral institutions. By the 2006-2007 school year,
private 4-year research/doctoral institutions were spending on average
$578 million per year--or approximately $115 million more, on average,
than public 4-year research/doctoral institutions. Moreover, tuition
increases at these private schools appear to have been used by
institutions to support education-related services for students.
Indeed, when comparing trends in tuition with trends in education-
related expenditures, at private institutions, tuition increases have
been matched by proportionally equal or greater spending on education-
related services.
We provided copies of a draft of this report to the Department of
Education (Education) for review and comment. Education provided us
with technical comments which we incorporated as appropriate.
To develop our findings, we analyzed trends in enrollment, tuition and
fees, and education-related expenditures. Our analysis of enrollment as
well as tuition and fee trends spans the period from the 1995-1996
through 2006-2007 school years, and our analysis of expenditure trends
spans the period from the 1995-1996 through 2005-2006 school years. All
trends were derived from the Department of Education's Integrated
Postsecondary Education Data System (IPEDS). Our analysis did not
include proprietary (for-profit) higher education institutions. A more
detailed explanation of our methodology can be found in appendixes II
and III of this report. We determined that the IPEDS enrollment,
tuition and fees, and education-related expenditures data are
sufficiently reliable for the purposes of this report. We conducted our
work from September 2007 through November 2007 in accordance with
generally accepted government auditing standards.
As agreed with your office, unless you publicly announce its contents
earlier, we plan no further distribution of this report until 30 days
from its issue date. At that time, copies of the report will be sent to
relevant congressional committees, the Secretary of Education, and
other interested parties and we will make copies available to others
upon request. In addition, this report will be available at no charge
on GAO's Web site at [hyperlink, http://www.gao.gov].
If you or your staff have any questions about this report, please
contact me at (202) 512-7215 or ScottG@gao.gov. Contact points for our
Office of Congressional Relations and Public Affairs may be found on
the last page of this report. Key contributors to this report include
Sherri Doughty (Assistant Director), Carlo Salerno (Analyst-in-
Charge), Jeffrey W. Weinstein, John Mingus Jr., Susannah Compton, and
Sheila McCoy.
Sincerely yours,
Signed by:
George A. Scott:
Director:
Education, Workforce, and Income Security Issues:
[End of section]
Appendix I: Briefing Slides:
Slide 1: Higher Education:
Tuition Continues to Rise, but Patterns Vary by Institution Type,
Enrollment, and Educational Expenditures:
Briefing for the House Committee on Education and Labor:
October 31, 2007:
Slide 2: Overview:
* Introduction:
* Research Objectives:
* Scope and Methodology:
* Summary of Findings:
* Research Findings:
Slide 3: Introduction:
Higher education has increasingly become critical to our
nation‘s cultural, social, and economic well-being, with 90
percent of the fastest-growing jobs in the knowledge economy
requiring some postsecondary education.
A college graduate can expect to earn, on average, over $1
million dollars more over the course of his or her working life
than individuals with just a high school education.
However, many have expressed concerns that college is
becoming less affordable for a growing number of students
and their families.
Slide 4: Research Objectives:
In response to a congressional request, GAO developed four
research questions on trends in enrollment, tuition and fees,
and institutional expenditures on education.
1. What have been the patterns in college enrollment over
the past decade and do these patterns differ by race?
2. What have been the patterns in the types of schools
students attend and do these patterns differ by race?
3. How much have tuition and fees increased over the past
decade across different types of higher education
institutions?
4. To what extent have increases in tuition and fees been
associated with increases in spending by institutions on
education?
Slide 5: Scope and Methodology:
This analysis looks at various trends, the majority of which span
periods between the 1995-1996 and 2006-2007 school years. Reported
trends in tuition and fees and institutional expenditures on education
are weighted by undergraduate enrollment.[Footnote 4]
Trends in tuition, fees, and education-related expenditures at
institutions of higher education were derived from the Department of
Education‘s Integrated Postsecondary Education Data System (IPEDS).
The analysis does not include proprietary (for-profit) higher education
institutions.
We determined that the IPEDS data on enrollment, tuition and fees, and
institutional expenditures on education-related services are
sufficiently reliable for the purposes of this report.
We conducted our work from September to October 2007 in accordance
with generally accepted government auditing standards.
Slide 6: Summary of Findings:
More students are enrolling in college than ever before, and
an increasingly larger percentage of all students are minorities.
While the types of schools in which students enroll have largely
remained stable, the distribution of enrollment has shifted for some
minority groups.
Although average tuition and fees increased for all institution types,
the smallest tuition increases occurred at institutions that enroll the
largest proportion of college students.
Between the 2000-2001 and 2005-2006 school years, increases in average
tuition and fees were matched or exceeded by increases in average
institutional spending on education at private institutions, but not at
public institutions.
Slide 7: Objective One: Enrollment Growth:
More Students Are Enrolling In College than Ever Before:
Between the 1995-1996 and 2006-2007 school years, overall enrollment in
U.S. higher education institutions increased by about 19 percent, or
more than an estimated 2.2 million students. [Footnote 5]
The percentage of students studying full-time increased from 58 percent
to 62 percent over the same time period.
Slide 8: Figure 1: Enrollment In U.S. Degree-Granting Institutions,
School Years 1963-1964 through 2005-2006:
[See PDF for image]
This figure is a multiple line graph depicting enrollment in U.S.
degree-granting institutions, school years 1963-1964 through 2005-2006.
The vertical axis of the graph represents enrollment from 0 to 14
million. The horizontal axis of the graph represents school years 1963-
1964 through 2005-2006. Lines depicting enrollment are shown separately
for public colleges and private colleges.
Source: GAO analysis of Department of Education data.
[End of figure]
Slide 9: Objective One: Enrollment Growth:
The Majority of Students Continue to Be White/Non-Hispanic.
Figure 2: Enrollment in Higher Education in 2006-2007, by Major Race
Categories:
[See PDF for image]
This figure is a pie-chart depicting the following enrollment figures
in number and percentage of total enrollment:
White/non-Hispanic: 66% (8,567,911);
Hispanic: 13% (1,693,945);
Black/non-Hispanic: 13% (1,651,344);
Asian/Pacific Islander: 7% (873,659);
American Indian/Alaskan Native: 1% (130,435).
Source: GAO analysis of Department of Education data.
[End of figure]
Slide 10: Objective One: Enrollment Growth:
Minority Enrollments Have Rapidly Increased since the 2000-2001
School Year.
Figure 3: Growth in Higher Education Enrollment since the 2000-2001
School Year, by Major Race Categories:
[See PDF for image]
This figure is a multiple line graph depicting growth in higher
education enrollment since the 2000-2001 school year, by major race
categories. The vertical axis of the graph represents percent from -5
to +25. The horizontal axis of the graph represents school years 2000-
2001 through 2006-2007. Lines depicting enrollment are displayed for
each of the following race categories:
Hispanic;
Black non-Hispanic;
Asian or Pacific Islander;
American Indian or Alaskan Native;
White non-Hispanic.
Source: GAO analysis of Department of Education data.
Note: The IPEDS survey changed from a paper-based system to a Web-based
system between the 1999-2000 and 2000-2001 school years. Thus, trends
up to the 1999-2000 school year may not be comparable to trends
starting in the 2000-2001 school year.
[End of figure]
Slide 11: Objective One: Enrollment Growth:
Enrollments Increased across Almost All School Types, Particularly at
Public Institutions and 2-Year Schools.
Table 1: Enrollment In U.S. Higher Education Institutions by Form of
Control and School Type, School Years 1995-1996 and 2006-2007:
Public schools:
1995-1996: 9,779,145;
2006-2007: 11,674,338;
2006-2007 Enrollment share (percent): 83;
Increase Number: 1,895,193;
Increase Percent: 19.
Private schools:
1995-1996: 2,025,529;
2006-2007: 2,337,509;
2006-2007 Enrollment share (percent): 17;
Increase Number: 311,980;
Increase Percent: 15.
4-year, research/doctoral schools:
1995-1996: 2,722,192;
2006-2007: 3,298,474;
2006-2007 Enrollment share (percent): 24;
Increase Number: 576,282;
Increase Percent: 21.
Other 4-year schools:
1995-1996: 3,512,962;
2006-2007: 3,913,6434;
2006-2007 Enrollment share (percent): 28;
Increase Number: 400,681;
Increase Percent: 11.
2-year schools[A]:
1995-1996: 5,307,447;
2006-2007: 6,566,142;
2006-2007 Enrollment share (percent): 47;
Increase Number 1,258,695;
Increase Percent: 24.
Specialty schools[B]:
1995-1996: 262,073;
2006-2007: 233,588;
2006-2007 Enrollment share (percent): 2;
Increase Number: -28,485;
Increase Percent: -11.
Source: GAO analysis of Department of Education data.
[A] These primarily 2-year schools are institutions that offer
associate of arts certificate or degree programs and, with few
exceptions, offer no baccalaureate degrees. These include community,
junior, and technical colleges.
[B] These institutions offer degrees ranging from the bachelor‘s to the
doctorate, and typically award a majority of degrees in a single field.
Institution types include, but are not limited to, medical and business
schools, schools of art, music, and design; and law schools.
[End of table]
Slide 12: Objective One: Enrollment Growth:
Two-Year Schools Enrolled the Majority of New Entrants.
Figure 4: Enrollment In U.S. Higher Education Institutions
by Institutional Type, School Years 1995-1996 through 2006-2007:
[See PDF for image]
This figure is a multiple line graph depicting enrollment In U.S.
higher education institutions by institutional type, school years 1995-
1996 through 2006-2007. The vertical axis of the graph represents
enrollment from 0 to 7 million. The horizontal axis of the graph
represents school years 1995-1996 through 2006-2007. Lines depicting
enrollment are displayed for each of the following institutional types:
Two-year schools;
Four-year research/doctoral schools;
Other four-year schools;
Specialty schools.
Source: GAO analysis of Department of Education data.
Note: The IPEDS survey changed from a paper-based system to a Web-based
system between the 1999-2000 and 2000-2001 school years. Thus, trends
up to the 1999-2000 school year may not be comparable to trends
starting in the 2000-2001 school year.
[End of figure]
Slide 13: Objective One: Enrollment Growth:
Most Students Are Enrolled in Public Institutions, and
Particularly 2-Year Schools.
In the 2006-2007 school year, 83 percent of all students were enrolled
in public institutions, while 17 percent were enrolled in private
institutions.
The largest proportion of students – 46 percent – were enrolled in
public 2-year schools, where enrollment grew by over 20 percent over
the past decade.
Among 4-year schools, less than half of all students were enrolled in
research/doctoral-granting universities; however enrollments at these
institutions increased, in percentage terms, almost twice as fast as
they did at other 4-year schools.[Footnote 6]
Specialty schools were the only institution type where enrollments
declined over the past decade.
Slide 14: Objective Two: Enrollment Distribution:
Over the Last 12 years, the Distribution of Students across Institution
Types Shifted for Some Minority Groups toward 2-Year Schools.
In the 2006-2007 school year, 58 percent of Hispanic students were
enrolled in 2-year schools, and approximately 50 percent of
Asian/Pacific Islander, Alaskan Native, and Black/Non-Hispanic students
were enrolled in 2-year schools. In contrast, 43 percent of White/non-
Hispanic students were enrolled in 2-year schools.
Hispanic enrollments in 2-year schools increased by 4 percentage points
between the 1995-1996 and 2006-2007 school years, while enrollments in
both public and private 4-year master‘s and baccalaureate schools each
decreased by 2 percentage points.[Footnote 7]
Black enrollments in 2-year schools increased by 3 percentage points
over this same time period, while enrollments in public 4-year master‘s
and baccalaureate schools decreased by 3 percentage points.[Footnote 7]
The distributions in enrollments for other major race categories
changed by less than 2 percentage points over this time.
Slide 15: Objective Three: Patterns in Tuition Increases:
Average Tuition and Fees Increases over the Past Decade Vary by
Institution Type.
Average tuition and fees increased the least at 2-year public
institutions – by $420, from $2,091 to $2,510 (a 20 percent increase).
Average tuition and fees increased the most at private 4-year
research/doctoral institutions – by $7,330, from $19,185 to $26,515 (a
38 percent increase).
Slide 16: Objective Three: Patterns in Tuition Increases:
Tuition and fees at Private Institutions Increased the Most in Dollars,
while Tuition and fees at Public Institutions Increased the Most in
Percentage Points.
Table 2: Comparison of Tuition and Fees Increases by Type of School,
School Years 1995-1996 and 2006-2007:
School type: 4-year, research/doctoral schools;
Dollar increase, Public: $2,245;
Dollar increase, Private: $7,330;
Percentage increase, Public: 57%;
Percentage increase, Private: 38%.
School type: 4-year, master‘s and baccalaureate schools;
Dollar increase, Public: $1,511;
Dollar increase, Private: $5,064;
Percentage increase, Public: 47%;
Percentage increase, Private: 37%.
School type: 4-year diverse fields schools;
Dollar increase, Public: [Empty];
Dollar increase, Private: $5,521;
Percentage increase, Public: [Empty];
Percentage increase, Private: 38%.
School type: 2-year schools;
Dollar increase, Public: $420;
Dollar increase, Private: $1,276;
Percentage increase, Public: 20%;
Percentage increase, Private: 14%.
School type: Specialty schools;
Dollar increase, Public: $1,166;
Dollar increase, Private: $3,763;
Percentage increase, Public: 39%;
Percentage increase, Private: 33%.
Source: GAO analysis of Department of Education data.
[End of table]
Slide 17: Objective Three: Patterns in Tuition Increases:
Today, the Majority of Students Attend Institutions That Have the
Lowest Average Tuition and Fees, while Relatively Few Students Attend
Institutions with the Highest Average Tuition and Fees.
Nearly half of all students in 2006-2007 attended institutions where
the average annual in-state tuition and fees was less than $2,550.
Three out of every five students attended institutions where the
average annual in-state tuition and fees was less than $4,750 per year.
In contrast, only 3 out of every 100 students were enrolled at
institutions where the average annual tuition and fees was more than
$25,000 per year.[Footnote 8]
Slide 18: Objective Three: Patterns in Tuition Increases:
Today, the Majority of Students Attend Institutions That Have the
Lowest Average Tuition & Fees, while Relatively Few Students Attend
Institutions with the Highest Average Tuition and Fees.
Table 3: Comparison of Average Undergraduate Tuition and Fees, by Type
of School, School Years 1995-1996 and 2006-2007:
School type: 4-year, research/doctoral schools;
1995-1996, Public: $3,952;
1995-1996, Private: $19,185;
2006-2007, Public: $6,197;
2006-2007, Private: $26,515.
School type: 4-year, master‘s and baccalaureate schools;
1995-1996, Public: $3,218;
1995-1996, Private: $13,829;
2006-2007, Public: $4,730;
2006-2007, Private: $18,893.
School type: 4-year diverse fields schools;
1995-1996, Public: NA;
1995-1996, Private: $14,707;
2006-2007, Public: NA;
2006-2007, Private: $20,228.
School type: 2-year schools;
1995-1996, Public: $2,091;
1995-1996, Private: $8,812;
2006-2007, Public: $2,510;
2006-2007, Private: $10,088.
School type: Specialty schools;
1995-1996, Public: $2,960;
1995-1996, Private: $11,546;
2006-2007, Public: $4,125;
2006-2007, Private: $15,309.
Source: GAO analysis of Department of Education data.
[End of table]
Slide 19: Objective Four: Institutional Expenditures on Education:
Average Spending on Education by Private Schools Has Grown Faster, in
Percentage Terms, than Average Spending at Comparable Public Schools.
Table 4: Comparison of Average Institutional Expenditures on Education-
Related Services and Increases by Type of School, School Years 1995-
1996 and 2005-2006:
School type: Public, 4-year, research/doctoral;
Average institutional expenditures[A], 1995-1996: $370,170,005;
Average institutional expenditures[A], 2005-2006: $463,288,443;
Average increase, Amount: $93,118,439;
Average increase, Percent: 25.
School type: Private, 4-year, research/doctoral;
Average institutional expenditures[A], 1995-1996: $337,162,086;
Average institutional expenditures[A], 2005-2006: $577,912,870;
Average increase, Amount: $240,750,784;
Average increase, Percent: 71.
School type: Public, 4-year, master‘s and baccalaureate;
Average institutional expenditures[A], 1995-1996: $86,131,029;
Average institutional expenditures[A], 2005-2006: $107,121,584;
Average increase, Amount: $20,990,555;
Average increase, Percent: 24.
School type: Private, 4-year, master‘s;
Average institutional expenditures[A], 1995-1996: $49,850,299;
Average institutional expenditures[A], 2005-2006: $79,706,791;
Average increase, Amount: $29,856,492;
Average increase, Percent: 60.
School type: Private, 4-year, diverse fields;
Average institutional expenditures[A], 1995-1996: $27,262,798;
Average institutional expenditures[A], 2005-2006: $44,593,799;
Average increase, Amount: $17,331,001;
Average increase, Percent: 64.
School type: Public, primarily 2-year colleges;
Average institutional expenditures[A], 1995-1996: $43,573,365;
Average institutional expenditures[A], 2005-2006: $57,950,331;
Average increase, Amount: $14,376,966;
Average increase, Percent: 33.
School type: Private, primarily 2-year colleges;
Average institutional expenditures[A], 1995-1996: $18,618,195;
Average institutional expenditures[A], 2005-2006: $34,876,449;
Average increase, Amount: $16,258,254;
Average increase, Percent: 87.
Source: GAO analysis of Department of Education data.
[A] New accounting standards for public institutions were phased in
over a several-year period during the time period above, which may have
affected some public institutions‘ reported expenditures.
[End of table]
Slide 20: Objective Four: Institutional Expenditures on Education:
At Private Institutions, Tuition and Fees Increases Have Been Matched
by Proportionally Equal or Greater Spending on Education-Related
Services.
Figure 5: Cumulative Difference between Percentage Change in
Institutional Expenditures on Education-Related Activities and
Percentage Change in Tuition and Fees, by Institution Type, School
Years 2000-2001 through 2005-2006:
[See PDF for image]
This figure is a multiple line graph, with lines depicting the
cumulative difference between percentage change in institutional
expenditures on education-related activities and percentage change in
tuition and fees, by institution type for school years 2000-2001
through 2005-2006. There are seven institutional categories depicted:
private, primarily two-years; private, four-year, masters; private,
four-year, research/doctoral; private, four-year, diverse fields;
public primarily two-years; public, four-years, master's and
baccalaureate; and public, four-year, research/doctoral. The vertical
axis of the graph represents percents from -40 to +40. The horizontal
axis of the graph represents school years from 2000-2001 to 2005-2006.
Source: GAO analysis of Department of Education data.
[End of figure]
[End of section]
Appendix II: IPEDS Variables:
The following variables were analyzed to assess trends in enrollment,
tuition and fees, and educational expenditures by type of institution.
All variables were downloaded directly from Education's IPEDS system.
Table 1: Variables used in IPEDS analysis:
Variable category: Institution type;
Variable name: Carnegie classification code, 2000 system;
IPEDS code(s): carnegie.
Variable category: Enrollment (total undergraduates);
Variable name: Nonresident alien men;
IPEDS code(s): efrace01.
Variable category: Enrollment (total undergraduates);
Variable name: Nonresident alien women;
IPEDS code(s): efrace02.
Variable category: Enrollment (total undergraduates);
Variable name: Black non-Hispanic men;
IPEDS code(s): efrace03.
Variable category: Enrollment (total undergraduates);
Variable name: Black non-Hispanic women;
IPEDS code(s): efrace04.
Variable category: Enrollment (total undergraduates);
Variable name: American Indian or Alaskan Native men;
IPEDS code(s): efrace05.
Variable category: Enrollment (total undergraduates);
Variable name: American Indian or Alaskan Native women;
IPEDS code(s): efrace06.
Variable category: Enrollment (total undergraduates);
Variable name: Asian or Pacific Islander men;
IPEDS code(s): efrace07.
Variable category: Enrollment (total undergraduates);
Variable name: Asian or Pacific Islander women;
IPEDS code(s): efrace08.
Variable category: Enrollment (total undergraduates);
Variable name: Hispanic men;
IPEDS code(s): efrace09.
Variable category: Enrollment (total undergraduates);
Variable name: Hispanic women;
IPEDS code(s): efrace10.
Variable category: Enrollment (total undergraduates);
Variable name: White non-Hispanic men;
IPEDS code(s): efrace11.
Variable category: Enrollment (total undergraduates);
Variable name: White non-Hispanic women;
IPEDS code(s): efrace12.
Variable category: Enrollment (total undergraduates);
Variable name: Race-ethnicity unknown men;
IPEDS code(s): efrace13.
Variable category: Enrollment (total undergraduates);
Variable name: Race-ethnicity unknown women;
IPEDS code(s): efrace14.
Variable category: Enrollment (total undergraduates);
Variable name: Total men;
IPEDS code(s): efrace15.
Variable category: Enrollment (total undergraduates);
Variable name: Total women;
IPEDS code(s): efrace16.
Variable category: Tuition & fees;
Variable name: Tuition, full-time undergraduates, in-state;
IPEDS code(s): tuition2.
Variable category: Tuition & fees;
Variable name: Fees, full-time undergraduates, in-state;
IPEDS code(s): fee2.
Variable category: Expenditures;
Variable name: Academic support - current year total;
IPEDS code(s): b043, fb04_1, f1c051, f2b04, f2e041.
Variable category: Expenditures;
Variable name: Auxiliary enterprises - current year total;
IPEDS code(s): b133, fb07_1, f1c111, f2b07_1, f2e071.
Variable category: Expenditures;
Variable name: Institutional support - current year total;
IPEDS code(s): b073, fb06_1, f1c071, f2b06_1, f2e061.
Variable category: Expenditures;
Variable name: Instructional support - current year total;
IPEDS code(s): b013, fb01_1, f1c011, f2b01_1, f2e011.
Variable category: Expenditures;
Variable name: Student services - current year total;
IPEDS code(s): b063, fb05_1, f1c061, f2b05_1, f2e051.
Source: Integrated Postsecondary Education Data System data dictionary,
National Center for Education Statistics, Department of Education.
[End of table]
[End of section]
Appendix III: Carnegie Classifications:
For the purposes of this report, institutions of higher education were
grouped into nine categories based on their sector (i.e., whether they
are private or public institutions) and their Carnegie Classification
code (2000 System). The following table lists how those categories were
generated. All values were downloaded directly from Education's IPEDS
system.
Table 2: Groupings of institutions of higher education:
Group number: (1);
Group name: Public, 4-year, research/doctoral;
Sector(s): [Empty];
Carnegie codes and labels (2000): 11 - Research Universities I; 12 -
Research Universities II; 13 - Doctoral Universities I; 14 - Doctoral
Universities II; 15 - Doctoral/Research Universities (Extensive); 16 -
Doctoral/Research Universities (Intensive).
Group number: (2);
Group name: Public, 4-year, master's and baccalaureate;
Sector(s): [Empty];
Carnegie codes and labels (2000): 21 - Master's Colleges and
Universities I; 22 - Master's Colleges and Universities II; 31 -
Baccalaureate Colleges (Liberal Arts); 32 - Baccalaureate Colleges
(General).
Group number: (3);
Group name: Public, primarily 2-year colleges;
Sector(s): Public, 4-year or above; Public, 2-year;
Carnegie codes and labels (2000): 33 - Baccalaureate/Associates
Colleges; 40 - Associate of Arts Colleges.
Group number: (4);
Group name: Public, specialty;
Sector(s): [Empty];
Carnegie codes and labels (2000): 51 - Theological Seminaries; 52 -
Medical Schools; 53 - Other Health Profession Schools; 54 - Schools of
Engineering and Technology; 55 - Schools of Business and Management;
56 - Schools of Art, Music, and Design; 57 - Schools of Law; 58 -
Teachers Colleges; 59 - Other Specialized Institutions.
Group number: (5);
Group name: Private, 4-year, research/doctoral;
Sector(s): Private nonprofit, 4-year or above; Private nonprofit, 2-
year;
Carnegie codes and labels (2000): 11 - Research Universities I; 12 -
Research Universities II; 13 - Doctoral Universities I; 14 - Doctoral
Universities II; 15 - Doctoral/Research Universities (Extensive); 16 -
Doctoral/Research Universities (Intensive).
Group number: (6);
Group name: Private, 4-year, master's;
Sector(s): [Empty];
Carnegie codes and labels (2000): 21 - Master's Colleges and
Universities I; 22 - Master's Colleges and Universities II.
Group number: (7);
Group name: Private, 4-year, diverse fields;
Sector(s): [Empty];
Carnegie codes and labels (2000): 31 - Baccalaureate Colleges
(Liberal Arts); 32 - Baccalaureate Colleges (General).
Group number: (8);
Group name: Private, primarily 2-year colleges;
Sector(s): [Empty];
Carnegie codes and labels (2000): 33 - Baccalaureate/Associates
Colleges; 40 - Associate of Arts Colleges.
Group number: (9);
Group name: Private, specialty;
Sector(s): Private nonprofit, 4-year or above; Private nonprofit, 2-
year;
Carnegie codes and labels (2000): 51 - Theological Seminaries; 52 -
Medical Schools; 53 - Other Health Profession Schools; 54 - Schools of
Engineering and Technology; 55 - Schools of Business and Management;
56 - Schools of Art, Music, and Design; 57 - Schools of Law; 58 -
Teachers Colleges; 59 - Other Specialized Institutions.
Source: GAO analysis of Integrated Postsecondary Education Data System,
National Center for Education Statistics, Department of Education.
[End of table]
[End of section]
Related GAO Products:
Higher Education: Science, Technology, Engineering, and Mathematics
Trends and the Role of Federal Programs. GAO-06-702T. Washington,
D.C.: May 3, 2006.
Higher Education: Federal Science, Technology, Engineering, and
Mathematics Programs and Related Trends. GAO-06-114. Washington,
D.C.: October 12, 2005.
Distance Education: Growth in Distance Education Programs and
Implications for Federal Education Policy. GAO-02-1125T. Washington,
D.C.: September 26, 2002.
College Tuition and Fees: Changes in the 1995-96 to 1999-2000 Period
Compared with Median Household Income. HEHS-00-198R. Washington,
D.C.: September 26, 2000.
Higher Education: Tuition Increases and Colleges' Efforts to Contain
Costs. HEHS-98-227. Washington, D.C.: September 30, 1998.
Higher Education: Students Have Increased Borrowing and Working to Help
Pay Higher Tuitions. HEHS-98-63. Washington, D.C.: February 18, 1998.
[End of section]
Footnotes:
[1] The commission was established in 1992 and was authorized through
1998. Pub. L. No. 102-325; 105-18; 105-332
[2] Note that the 2006-2007 fall enrollment data have not been publicly
released by the Department of Education and may be subject to change.
[3] The tuition and fees identified here are the prices posted by
institutions of higher education. They do not fully reflect the final
or "net" price that students and families pay.
[4] ’Institutional expenditures on education“ includes academic
support, auxiliary enterprises, institutional support, instructional
support, and student services; it does not include research support,
public service support, net grant aid to students, hospital services,
independent operations, operations and maintenance, and ’other
expenses,“ as defined in IPEDS.
[5] Note that the 2006-2007 fall enrollment data has not been publicly
released by the Department of Education and may be subject to change.
[6] Other 4-year institutions include, but are not limited to, public
bachelor‘s/master‘s-granting institutions and private liberal arts
colleges.
[7] The distribution of Hispanic and Black enrollments for all other
institution types changed by 1 percentage point or less over the time
period.
[8] Tuition and fees identified here are prices posted by institutions
of higher education. Because they do not account for institutional
grants-in-aid or other forms of external grant funding, they do not
fully reflect the final, or ’net,“ price that students and families
pay. Also, they do not reflect the other costs borne by families for
students to attend school, such as room and board, textbooks, and other
required supplies. For example, see GAO, College Textbooks: Enhanced
Offerings Appear to Drive Recent Price Increases, GAO-05-806
(Washington, D.C.: July 29, 2005), for a discussion of textbook prices.
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