Topic: Higher education costs

Budgets do not only pay the costs of activities. They also reveal the ambitions and limitations of an organization. The opportunities presented in a budget are also bounded by the structural elements used by that institution: how costs and revenues are organized, how overhead is calculated and apportioned, and how assets and investments are calculated and utilized, among others. In the higher education sector in the US, there are many common budgeting elements but also several important areas of differentiation.

Increased college-going and attainment comes with a host of benefits for individuals and society. A college credential is associated with increased civic engagement, volunteering, happiness, life satisfaction, and better health and wellness, as well as lower incarceration rates and reliance on social services. In addition to the host of nonpecuniary benefits of higher education, there is a direct link between both college access and attainment and students’ future economic outcomes. For example, students with test scores just above the eligibility…

The effects of the COVID-19 pandemic are still unfolding, but already the pandemic seems likely to have an unprecedented impact on higher education finances. In response to declining tax revenues, states are beginning to curtail higher education funding, a key source of revenue for many public colleges and universities. Changing enrollment patterns and rising unemployment has softened demand for some colleges, which can negatively affect tuition revenues. Limitations on in-person activities and increased health-related costs are shrinking auxiliary revenues, a…

With a pandemic-driven recession and unemployment stratified by postsecondary attainment levels, investments in education, including higher education, are needed now more than ever. Yet, the outlook for state finances is grim, especially if federal investment stalls, and shrinking budgets and financial instability are likely to lead to reductions in state spending. As we discuss in a companion brief, during times of constrained resources, states’ playbooks should include three key elements: ensuring that higher education funding is adequate, ensuring that institutions…

In a recent research report titled “Better Than We Thought,” our team at Ithaka S+R compared Integrated Postsecondary Education System (IPEDS) data on the parental income distribution of entering college students with two other public sources of socioeconomic information on that population. In the report, we first checked the consistency of the income distributions reported by IPEDS with a more comprehensive dataset of tax records collected by researchers Opportunity Insights. Finding that, at the level of aggregate groups of institutions…

The COVID-19 pandemic and associated disruptions have had a major impact on the US academic research enterprise. This report provides a landscape review of what is known about these impacts, from March through mid-October 2020, with an aim of identifying gaps that should be addressed. Our focus is on externally funded research, and therefore we emphasize STEM fields almost exclusively. As a result, we also focus on the largest research universities, which conduct an outsized share of this research and…

Attention to the burden of U.S. educational debt, now at $1.7 trillion, has grown in recent years. For too many former postsecondary students—especially Black students—debt they took on to improve their lives and career prospects has instead become a financial hindrance, delaying or undermining their efforts to buy homes, build savings, or provide for their families. The debt burden is especially severe for those who never completed their postsecondary program and therefore did not receive the credentials that might have…

Inequity in higher education access is a persistent problem. One way in which this manifests is through inequitable opportunities to attend the most well-resourced institutions. When students attend limited-resource institutions, they are less likely to persist and earn a credential and typically have weaker labor market prospects. Low-income and racial and ethnic minority students are more likely to attend under-resourced institutions than their wealthier and white peers. These enrollment patterns vis-à-vis institutional resources stand to perpetuate social and economic inequities.