Tuition Increases Research Articles

State divestment and tuition at public institutions

This study examines the pass-through rate of changes in public funding to tuition and fees paid by students. Using an instrumental variable-fixed effects identification strategy, I estimate that a $1000 per student decrease in funding leads to the typical student paying $257 more each year in costs, with. However, both the pass-through rate and the proportion of tuition increases which can be explained by state divestment have increased over time. The pass-through rate increased from 10.3% prior to the year 2000 to 31.8% post-2000. I outline several avenues of future research which should be pursued in order to more fully understand which students shoulder the burden of reductions in public support.

University fees and the demand for STEM degrees

ABSTRACTThe 2006 increase in university tuition in the UK was followed by a 3–4% reduction in the proportion of students choosing STEM degrees, due either to a change in the composition of students, or to similar students selecting away from STEM subjects. This article tests the latter hypothesis, estimating the effect of the fees for comparable students using propensity score matching on a rich set of covariates. Results suggest that the change was entirely driven by compositional changes.

Return on investment of advanced practice medical degrees: NPs vs. PAs.

Salaries were abstracted from the 2012 Bureau of Labor Statistics database. The net present value (NPV) of PA and NP salaries was calculated with a 5% discount rate. Principal and interest for student loans was calculated at a 6% interest fixed-rate loan over 30 years. NPVs were then compared with projected ROI at retirement age. Relative career values were also given to each career choice, based on a retirement age of 65 years, which translates to about 41 years of employment for both PAs and NPs. PAs' and NPs' educational loans both equalled $129,484 on total repayment. The median annual salary of a PA was $90,930 and $89,960 for an NP. PA data yielded a 5% NPV of $781,323 compared with $764,348 for NPs. Of note, the 5% NPV of a 4-year nursing degree is $728,436. PAs have a slightly higher ROI compared with NPs. These findings may change due to adjustments in nursing training models. Many PA programs allow matriculation immediately after obtaining a bachelor's degree. NP schools often require nursing experience before entering their program. Some schools are considering an accelerated NP program, allowing immediate matriculation after obtaining a bachelor's degree. Because many NP programs have become doctoral degrees, the increased duration of training, higher tuition, and fewer years worked before retirement lower the overall NP ROI. A similar reduction in ROI was considered marginal in PAs who attend residency programs-though these programs are not required for PAs to practice. Comparison of an RN with a 4-year degree to an NP shows little increase in ROI. If interest rates rise, it will become fiscally preferable to remain in a nursing position. Other intangible qualities exist and need further research (for example, weighing the financial aspects with lifestyle or professional satisfaction).

Tenure, Faculty Contracts and Bargaining Conflict

Tenure is sometimes charged as giving faculty lifetime job security, with little accountability and sporadic monitoring of performance. Scholars have traditionally defended tenure as necessary for academic freedom. This paper takes a different approach by examining the academic "employment contract relationship," and explaining how tenure can lead to bargaining conflict. Tenure is costly to the university but extremely valued by the faculty member. The opportunity cost of granting tenure to someone is the lost teaching and research output of younger people who cannot be hired in future. Tenure is necessary because without it, incumbents would never recommend hiring people who might be better than they are, for fear of being replaced. Tenure is also efficient because faculty have better information about incumbents than either university administrators or outside consultants. Tenure is therefore necessary to motivate older faculty to hire the best. With staff budget dollars able to be shifted back or forwards across time periods, tenure secures the truthful revelation of who are the good candidates over all periods, and the university is guaranteed that those who are in the best position to judge (namely, faculty rather than administrators) have every incentive to make the best decisions. It follows, then, that the naive suggestion to get rid of tenure so that older, expensive professors can be fired and replaced with younger, cheaper professors would be disastrous in the long run. A simple model is presented explaining why (a) recent cutbacks in government grants, (b) cost pressures on university budgets, (c) limits to tuition increases, and (d) declining interests in attending a less "excellent" university have all resulted in pressure on tenure. Because there is no previously agreed-to mechanism in place to adjust staff, university administrations and faculty unions are not so much bargaining over an acceptable contract outcome as they are contesting the very rules of the bargaining game. Accordingly, unless tenure is reconsidered, universities may increasingly face bargaining conflict. Tenure could be reformed by making the term of tenure limited but related to rank, and establishing a maximum eligibility period during which a faculty may apply for promotion.

Training the next generation of Canadian Clinician-Scientists: charting a path to success.

Clinician-scientists are physicians with training in both clinical medicine and research that enables them to occupy a unique niche as specialists in basic and translational biomedical research. While there is widespread acknowledgement of the importance of clinician-scientists in today's landscape of evidence-based medical practice, training of clinician-scientists in Canada has been on the decline, with fewer opportunities to obtain funding. With the increasing length of training and lower financial compensation, fewer medical graduates are choosing to pursue such a career. MD-PhD programs, in which trainees receive both medical and research training, have the potential to be an important tool in training the next generation of clinician-scientists; however, MD-PhD trainees in Canada face barriers that include an increase in medical school tuition and a decrease in the amount of financial support. We examined the available data on MD-PhD training in Canada and identified a lack of oversight, a lack of funding and poor mentorship as barriers experienced by MD-PhD trainees. Specific recommendations are provided to begin the process of addressing these challenges, starting with the establishment of an overseeing national body that would track long-term outcome data for MD-PhD trainees. This national body could then function to implement best practices from individual programs across the country and to provide further mentorship and support for early-career physician-scientists. MD-PhD programs have the potential to address Canada's growing shortage of clinician-scientists, and strengthening MD-PhD programs will help to effect positive change.

Tuition Fees in Spanish Public Universities: A Regional Convergence Analysis

We examine the regional evolution, dispersion and mobility of Spanish tuition fees using sigma and gamma convergence methodologies. The period of analysis varies depending on the type of study considered, being the maximum period between 1992 and 2014. The analysis reveals an increase of tuition fees over time. With regards to σ-convergence, there has been a growing dispersion of tuition fees of all type of studies considered among Spanish regions: undergraduate degrees adapted and not adapted to the European Higher Education Area (EHEA) as well as master studies (adapted to the EHEA). Moreover, γ-convergence results show an increasing mobility of regions in a ranking of tuition fees in all type of studies (although especially in masters). These results illustrate that the dispersion and mobility of university fees among Spanish regions have increased during a period of decentralisation of the Spanish Higher Education system, adaptation to the EHEA and a new tuition pricing system (since 2012).

The effect of price shocks on undocumented students' college attainment and completion

We examine the effect of a price shock caused by the temporary removal of in-state tuition benefits on the attainment of undocumented immigrants enrolled in a large urban college system using a difference-in-differences identification strategy. The 113% one-semester tuition increase led to an 8% decrease in reenrollment and a similarly-sized reduction in credit accumulation. For students who had been enrolled at least a year prior to the policy change, the price hike caused them to leave college sooner but did not increase their probability of dropping out. Conversely, students who entered college the semester prior to the policy change experienced lasting reductions in attainment, including a 22% decrease in degree receipt compared to students with more college experience at the time of the price shock. Our results suggest that public subsidies that lower college prices can increase degree completion among resource-constrained students who have made the decision to enroll in college, with larger benefits accruing to those who are early in their college careers.

Debt and Human Capital: Evidence from Student Loans

This paper investigates the dynamic relation between debt and investments in human capital. We document a negative causal effect of the level of undergraduate student debt on the probability of enrolling in a graduate degree for a random sample of the universe of federal student loan borrowers in the US. We compare students (i) within school and cohort, and (ii) across cohorts within the same school at the time of a large tuition change. The latter strategy exploits the fact that students who face a tuition increase in earlier grades end up with significantly more debt than students who face the same tuition increase in later grades. We find that $4,000 in higher debt causes a two percentage point reduction in the probability of enrolling in graduate school relative to a mean of 12%. Further results suggest this effect is largely driven by credit constraints, is monotonically weaker with family income, and is attenuated for students who had compulsory personal finance training in high school. The results highlight an important trade off associated with debt-financing of human capital, and inform the debate on the effects of the large and increasing stock of student debt in the US.

Dysfunctions in the Federal Financing of Higher Education

Tuition, in real terms and across American universities, has roughly tripled over the past four decades. Through a review of the literature and the collection of basic data, we find support for the theory that the increases in federal financial support (loans and grants) for students have led to a significant share of these increases in tuition. We also find evidence against the assertion by some prominent researchers—used as support for devoting more federal resources to higher education—that in recent decades the wage premium for college education has increased, the supply of college-educated workers has been relatively weak, and wage inequality has increased as a result. Finally, we report data about the massive increase in the volume of federal student loans and about rising default rates on average and in particular among nontraditional students. The concomitant increase in tuition, increase in student loan defaults, and decline in average student quality, along with the unclear economic benefits to significant segments of former students and the current workforce, lead one to question whether the massive increase in federal support for higher education is achieving its goals.

Risk-sharing and student loan policy: Consequences for students and institutions

This paper examines the potential costs and benefits associated with a risk-sharing policy imposed on all higher education institutions. Under such a program, institutions would be required to pay for a portion of the student loans among which their students defaulted. I examine the predicted institutional responses under a variety of possible penalties and institutional characteristics using a straightforward model of institutional behavior based on monopolistic competition. I also examine the impact of a risk-sharing program on overall economic efficiency by estimating the returns to scale for undergraduate enrollment (as well as other outputs) among each of ten educational sectors. My estimates suggest that a risk-sharing program would induce only a modest tuition increase, with considerable heterogeneity across sectors. Two different penalty structures are analyzed in the context of the model, and alternative institutional responses such as tuition discounting and credit rating students are discussed.

Using Emotional Intelligence to Drive Enrollment Performance: An Integrative Review of the Literature

This article explores the use of emotional intelligence (EQ) as a leadership characteristic to drive enrollment performance at colleges and universities in the United States. The next decade of higher education will present continuous, dramatic, and transformational change in higher education. New paradigms and educational delivery systems will become commonplace. Federal legislation may strongly influence admission practices, tuition increases, and mandates for standard retention and graduation rates. Changing demographics and an uncertain international climate will alter the population of future university classes. Resources that assist college students in paying for their education will likely decrease. Technology will continue to make higher education available to students of all ages and at all times of the day and night. In short, change will be constant, and effective leadership among educational administrators, such as enrollment managers, will be imperative. The relationship between EQ, leadership effectiveness, and enrollment performance are examined. The article concludes with a review of emotional intelligence research in higher education and a discussion of the implication of enrollment performance for EQ research and practice.

The Gathering Storm still looms

A decade on, the situation portrayed in the influential report of a deteriorating US science and technology ecosystem has, if anything, worsened.

The Heterogeneous Non-resident Student Body: Measuring the Effect of Out-Of-State Students’ Home-State Wealth on Tuition and Fee Price Variations

More than 40 years of research has found a positive relationship between increases in the proportion of non-resident students enrolling in an institution and increases in the tuition prices this institution charges to these same students. Notably, this line of research has consistently treated this non-resident student body as if they constitute a homogeneous group in terms of their socioeconomic well-being, when in reality these students come from states with differing levels of socioeconomic prosperity. Notably, given that tuition and fee charges to non-resident students are market-based, institutions charge what out-of-state students are willing to pay. Under this rationale, it follows that the wealthier the student body of an institution is, the more institutions will be able to charge them in terms of tuition and fees for their education. The purpose of this study is twofold. First, it offers a method to measure the level of wealth of the non-resident student body enrolling at an institution considering the level of wealth of these students’ home states, therefore creating a measure of heterogeneity of the non-resident student body. The second purpose is to evaluate whether this measure of heterogeneity is associated with larger increases in the net tuition and fee prices charged to these students compared to the increases related to the homogeneous structure that ignores these students’ home-state wealth. This twofold purpose was addressed utilizing a dataset built from regional, state, and institutional information of 1743 public and private not-for-profit 4-year institutions across the contiguous United States. Since all the outcome variables were found to be spatially dependent, spatial econometrics techniques were employed for model estimation. Results corroborated that treating non-resident students as a homogeneous structure rendered downwardly biased estimates of institutions’ abilities and/or decisions to set higher or lower tuition and fee prices compared to the estimates obtained using the heterogeneous structure. Considering current general disinvestment of states in higher education, the analysis of factors driving non-resident tuition and fee price-setting has become especially relevant for public policy officials and decision-makers at both the institution- and state-levels. Accordingly, this study examines a critical issue in the finance of higher education—the setting of institutional tuition and fees for non-resident students.

Performing “in the red”: transformations and tensions in repertoires of contention during the 2012 Quebec student strike

The longest and largest student strike in Canadian history began in Quebec in the spring of 2012 in resistance to proposed tuition hikes and the increasing privatization of education and public services that this signaled. The symbol of the student movement, the red square (denoting ‘squarely in the red’ or ‘squarely in debt’) quickly went ‘viral’. At its height, an estimated 300,000 students were striking – nearly 75% of Quebec’s post-secondary student population; on May 22nd some 500,000 people marched in support. The strike continued for six months, ending only after the government was overturned and a new government cancelled the tuition increase. The redeployment of local protest repertoires, including traditional tactics such as picket lines combined with inclusive and creative tactics popularized in alter-globalization movements. Formal student associations combined with various ad hoc coalitions and organizations, as well as communitarian groups, in an uneasy alliance to create a mass mobilization that some commentators dubbed Québec’s ‘Maple Spring’. This article documents the transformation of what Tilly has called ‘repertoires of contention’ within the context of the Quebec student movement. In so doing, it highlights some of the principle debates concerning social values and distributions of agency that resurfaced in connection with the diverse tactics that formed the ‘new’ combinational repertoire.

Parental financial support and filial responsibility in emerging adulthood: a comparative study between the United States and South Korea

ABSTRACTWhy do parents provide considerable financial support to their children in college? How do college students feel about their parental financial support and how does it differ between American and Korean cultural contexts? Based on multiple group analysis, we tested the impact of family income and parents’ education on parental tuition and living expenses supports, which in turn affects college students’ perception of filial responsibility across the United States and South Korea. Participants included 179 American college (AC) students from Syracuse University and 268 Korean college (KC) students from Yonsei University Wonju. We found that family income was significantly related to an increase in parental tuition and living expenses supports for both AC and KC students. However, parents’ education was significantly related to an increase in parental tuition and living expenses supports for AC students, but not for KC students. In addition, parental tuition support was related to an increase for filial responsibility, and parental living expenses were related to a decrease in filial responsibility in KC students, but not for AC students. These results indicate that the association between parental financial support and college students’ perception of filial responsibility differs across American and Korean cultural contexts.

Accounting for the Rise in College Tuition

We develop a quantitative model of higher education to test explanations for the steep rise in college tuition between 1987 and 2010. The framework extends the quality maximizing college paradigm of Epple, Romano, Sarpca, and Sieg (2013) and embeds it in an incomplete markets, life-cycle environment. We measure how much changes in underlying costs, reforms to the Federal Student Loan Program (FSLP), and changes in the college earnings premium have caused tuition to increase. All these changes combined generate a 106% rise in net tuition between 1987 and 2010, which more than accounts for the 78% increase seen in the data. Changes in the FSLP alone generate a 102% tuition increase, and changes in the college premium generate a 24% increase. Our ?ndings cast doubt on Baumol’s cost disease as a driver of higher tuition.

The value of public relations: Different impacts of communal and exchange relationships on perceptions and communicative behavior

ABSTRACTThe study, using a survey of 508 university student publics, investigates (a) the impacts and mechanisms that a relationship has on a public’s perceptions and behavior around an issue and (b) how relationship types impact a public’s perception toward a tuition increase issue differently. The situational theory of publics was used as a theoretical framework. The results generally supported the theories. More important, the findings indicated that a communal relationship and an exchange relationship had different impacts on problem recognition, constraint recognition, and involvement recognition.

Saving for College and Section 529 Plans

The past decade has simultaneously witnessed a substantial increase in enrollment at post-secondary institutions and a marked increase in college tuition. Not surprisingly, this trend overlapped with an increased demand for student loans and tax-advantaged educational savings.

The Changing Landscape of Tuition and Enrollment in American Public Higher Education

The costs of public higher education have risen dramatically in recent years, causing anger among students and concern among policymakers worried about falling college completion rates. In this paper, we explore how public tuition costs affect postsecondary enrollment choices. We examine changes over time in the enrollment decisions of students in states where tuition and fees at public four-year institutions increased rapidly, compared with changes for observationally similar students in states with more modest tuition increases. Using student-level data on twelfth graders in 1992 and 2004 linked to institution-level data, we find a relative decline in the likelihood of attending an in-state public four-year institution among high school graduates from states where public tuition costs increased substantially over this period. Students in states where public tuition increased the most were considerably more likely to enroll in a public two-year college than their counterparts in states that adopted more modest increases. We explore heterogeneity in this pattern of substitution between institutions of varying selectivity and control and for students in policy-relevant socio-demographic subgroups, including those in different parts of the twelfth-grade achievement distribution. Generally, large tuition increases at public four-year colleges have weakened the propensity of high school graduates to enroll in such institutions in their state, and increased their likelihood of enrollment in less prestigious in-state public colleges, out-of-state public institutions, or private universities. These effects are most pronounced among students from families of low socioeconomic status, and nonelite students who perform below the 90th percentile on twelfth-grade math tests.

Envisioning a Modern Federal-State Partnership in the Reauthorization of the HEA as an Engine to Increase Social Mobility

Financial aid makes up the bulk of federal higher education spending, but do those dollars make a difference to needy students? A look at Federal Work-Study and Federal Supplemental Educational Opportunity Grant allocations show that a disproportionate amount of funding goes to private universities with high tuition and low Federal Pell Grant enrollment. Additionally, many financial aid awards use cost of attendance as a factor in determining award amounts, creating an unintentional incentive for tuition increases. These elements contribute to a funding environment that favors private universities over publics. When considered alongside the fact that pervasive state disinvestment has caused public colleges and universities to raise their tuition considerably over the last decade alone, the existence of public higher education appears to be in jeopardy. The authors propose a federal-state partnership that would incentivize state governments to maintain or increase their funding for public higher education. Further suggestions include the elimination of price-sensitive components in financial aid awards and maintaining caps on these awards to stem tuition increases where possible.