Higher Education

Tuition Continues to Rise, but Patterns Vary by Institution Type, Enrollment, and Educational Expenditures Gao ID: GAO-08-245 November 28, 2007

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. 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 This is the accessible text file for GAO report number GAO-08-245 entitled 'Higher Education: Tuition Continues to Rise, but Patterns Vary by Institution Type, Enrollment, and Educational Expenditures' which was released on December 21, 2007. This text file was formatted by the U.S. Government Accountability Office (GAO) to be accessible to users with visual impairments, as part of a longer term project to improve GAO products' accessibility. Every attempt has been made to maintain the structural and data integrity of the original printed product. Accessibility features, such as text descriptions of tables, consecutively numbered footnotes placed at the end of the file, and the text of agency comment letters, are provided but may not exactly duplicate the presentation or format of the printed version. The portable document format (PDF) file is an exact electronic replica of the printed version. We welcome your feedback. Please E-mail your comments regarding the contents or accessibility features of this document to Webmaster@gao.gov. This is a work of the U.S. government and is not subject to copyright protection in the United States. It may be reproduced and distributed in its entirety without further permission from GAO. Because this work may contain copyrighted images or other material, permission from the copyright holder may be necessary if you wish to reproduce this material separately. 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. GAO's Mission: The Government Accountability Office, the audit, evaluation and investigative arm of Congress, exists to support Congress in meeting its constitutional responsibilities and to help improve the performance and accountability of the federal government for the American people. GAO examines the use of public funds; evaluates federal programs and policies; and provides analyses, recommendations, and other assistance to help Congress make informed oversight, policy, and funding decisions. GAO's commitment to good government is reflected in its core values of accountability, integrity, and reliability. Obtaining Copies of GAO Reports and Testimony: The fastest and easiest way to obtain copies of GAO documents at no cost is through GAO's Web site [hyperlink, http://www.gao.gov]. Each weekday, GAO posts newly released reports, testimony, and correspondence on its Web site. To have GAO e-mail you a list of newly posted products every afternoon, go to [hyperlink, http://www.gao.gov] and select "Subscribe to Updates." Order by Mail or Phone: The first copy of each printed report is free. Additional copies are $2 each. A check or money order should be made out to the Superintendent of Documents. GAO also accepts VISA and Mastercard. Orders for 100 or more copies mailed to a single address are discounted 25 percent. Orders should be sent to: U.S. Government Accountability Office: 441 G Street NW, Room LM: Washington, D.C. 20548: To order by Phone: Voice: (202) 512-6000: TDD: (202) 512-2537: Fax: (202) 512-6061: To Report Fraud, Waste, and Abuse in Federal Programs: Contact: Web site: [hyperlink, http://www.gao.gov/fraudnet/fraudnet.htm]: E-mail: fraudnet@gao.gov: Automated answering system: (800) 424-5454 or (202) 512-7470: Congressional Relations: Gloria Jarmon, Managing Director, JarmonG@gao.gov: (202) 512-4400: U.S. Government Accountability Office: 441 G Street NW, Room 7125: Washington, D.C. 20548: Public Affairs: Chuck Young, Managing Director, youngc1@gao.gov: (202) 512-4800: U.S. Government Accountability Office: 441 G Street NW, Room 7149: Washington, D.C. 20548:

The Justia Government Accountability Office site republishes public reports retrieved from the U.S. GAO These reports should not be considered official, and do not necessarily reflect the views of Justia.