Tuition Levels Research Articles

The effects of tuition level and financial aid on the demand for undergraduate and advanced terminal degrees

This paper examines what is known about the effects of tuition level and financial aid on graduate enrollments and the stock of scholars with advanced terminal degrees. The demand for education is not defined in the traditional way as first year enrollments. Rather, a simultaneous equation model is developed which explicitly formulates the interrelated nature of the several demand functions representing progression through higher education. Within this framework, the findings from several statistical and methodological approaches to the demand for education can be analyzed, with a view to reaching a consensus as to the effects of tuition and financial aid at each stage of the choice process.

The Political Dilemmas of Foreign Study

On the North American side, academia and academics have long discovered the many benefits to be derived from being involved in training, consulting, or other technical assistance programs for underdeveloped countries in Africa, Asia, and Latin America: students from abroad form an increasingly welcome source of enrollment and tuition in universities where the decrease in the American graduate student population (caused by demographic as well as labor-market conditions) has often brought both enrollment and tuition levels to below a critical mass level.' Considerations of efficiency in the use of an institution's resources and capacities make increments of foreign students attractive where declining domestic student populations tend to drive up the unit costs per student. At the same time, many foreign students, especially from Third World countries, tend to come with full or major financial support from their governments, international assistance agencies, or philanthropic organizations, thus sparing their American host institutions the problem of financial support. Problems of brain drain in the case of some countries notwithstanding, the majority of foreign students tend to return to positions in their home countries, relieving the U.S. institution of yet another headache, that of placement in a shrinking labor market for graduates in most disciplines.

The determinants of interstate student migration: a place-to-place analysis

In this paper an empirical test of the factors underlying the student migration decision is made using place-to-place data. The school selection decision is modeled as one involving the choice of particular institutions and its characteristics, as well as those economic and other factors which influence non-student migrants. The results indicate first, that non-resident students may not be as sensitive to tuition levels as may have been believed; second, that the economic climate in the destination state is an important factor in the migration decision; and third, that there are many asymmetries in factors determining migration which cannot be captured without the origin and destination state data. The data allow us to make separate tests for subsamples of male and female student migrants. The results show little difference between these two groups.

The rising cost of private higher education

The report illustrates the informational and analytical basis on which one high-cost institution—Yale University—sets its annual tuition levels and long-term pricing policies. The rising cost of private higher education in general, and of a Yale education in particular, is examined in a context that takes into account historical trends, economic data (price and income inflation), the financial condition of the institution, comparative cost data from other schools, and studies of the impact of cost on enrollment. The results suggest that current educational costs, despite their recent rapid increases, are not significantly above historical levels (after adjusting for inflation), are not unfair to students, are affordable to most families, and are in line with the costs of other private institutions. No serious impact on the quality or diversity of the student body was discovered.

Cost as a Policy Issue

The cost of higher education is not a new issue. Controlling rapidly rising costs, however, has become an increasingly salient issue among students, parents, and public officials at both state and federal levels. A heightened sensitivity to the issue has been occasioned by tuition levels at private institutions prohibitive to many, by unprecedented increases in tuition and fees at many public institutions, and by revenue and expenditure constraints placed upon governments. Will public policy intervention attempting to control the cost of higher education become a priority item on the political agenda of the 1980s and 1990s? If so, what are the most likely policy strategies and their implications for institutions of higher education? The purpose of this article is to examine the possibility of cost control becoming a highly visible political issue at state and federal levels, to assess what general policy strategies are likely to be considered if this possibility becomes a reality, and to evaluate the implications of various strategies. The evolution of cost issues and cost-containment strategies in the health care sector offers instructive precedent and, for purposes of this article, serves as a basis for evaluating cost-containment strategies in higher education. Drawing lessons from the health care sector appears to have primafacie validity. Each enterprise is built around a core of semiautonomous professionals who traditionally have determined the conditions of and evaluated their work. The role of administrator is equally tenuous in educational and health institutions, at least from the perspective of the core professionals. Quality of service is a central, albeit

The impact of financial aid on women's demand for higher education

The Educational Amendments of 1972 marked a new direction in public policy regarding the scope and purpose of financial aid to higher education. Aid became more “student-oriented,” and equality of opportunity for higher education became a goal. This empirical study with national longitudinal data has made a start in policy evaluation of the effect of the 1972 Educational Amendments on the higher education acquired by young women. The most important result of financial aid receipt for young women is that those who received aid averaged 0.64 more years completed of higher education and averaged .145 greater graduation probability than similar women who did not receive aid. These results were obtained in multiple regression models in which the effects of marital status, parental background, geographic locations and economic characteristics, and tuition level were controlled for. These results suggest that policy attempts to stimulate the higher education acquired by enrolled young women by increasing the availability of financial aid are well founded.

Indexing tuition to cost of education: The impact on students and institutions

This study examines an emerging trend in state higher education finance policy: the use of an index to establish tuition and fee levels at public institutions. Based on a national survey of tuition-setting policies, this study documents the increasing use of an indexing formula to determine tuition levels. Factors encouraging this trend are examined, and questions that must be addressed by state and institutional policymakers in adopting such a formula are discussed. Policy implications for states and institutions are also considered.

Designing Student Aid Policies for the 1980's

Introduction . Postsecondary education finance experts have long debated the relative merits of subsidizing students through luw tuition levels at public institutions, or through student financial aid accompanied by higher tuition levels. The low' tuition mechanism has been deemed to provide better student to higher education since the prospective student directly confronts the stated tuition cost~ need not fill out elaborate financial aid application forms, and knows exactly what costs will .be long before actually beginning studies. On the other hand, the student financial aid mechanism has been considered the form of subsidy more likely to provide both access and choic(!, since it can target aid to students most in need of it and lets students vote with their feet to choose the college of their choice. Student aid that is need-based also produces a less regressive distribution of income than that resulting from low-tuition public higher education. As a pUblic policy matter student aid can be used to redistribute income much like a progressive income tax.

An Analysis of the Relationship between Instructional Costs and Differential Tuition Levels

The purpose of this investigation is to determine whether public tuition levels based on educational costs represent statistically significant cost differences between four-year and two-year institutions of higher education. That is, does the policy of setting tuition as a percentage of educational costs provide a significant (in the statistical sense) explanation for the tuition differentials between the two categories of institutions? Or are there other factors that must enter the tuition-setting process?

The Setting of Tuition in Public Higher Education

The need to develop a better understanding of how tuition prices are established has become increasingly important as governmental policies have come to encourage greater reliance upon this source of income as a means of financing higher education. That is, as will be seen below, institutions of higher education are having to rely more and more upon tuition income to balance operating budgets. One of the reasons is that at the federal level, the principal method of providing assistance to higher education has shifted from direct institutional support (largely categorical) to indirect aid through student financial assistance. Now, many state governments have adopted the federal example, with the implication that institutions may have to raise their prices in order to capture the restructured public subsidy. The purpose of this paper is to identify the determinants of tuition levels among major state universities. Such information should be useful in evaluating possible effects on tuition of some of the current higher education financing proposals, such as greater reliance upon state student aid programs, the introduction of educational tax credits, and the expansion of eligibility for federal need-based student aid programs. Also, some of the assumptions of recent and future financing policies and policy position papers can be examined. An important assumption of the major new financing policy of the 1970s was that need-based student aid programs would raise tuition prices in public colleges and universities [2,7]. The reasoning was that at least

The Cost of Special Education in Nonpublic Schools

Program expenditure and income data collected from a sample of 61 nonpublic special education schools were analyzed to illuminate their market behavior. Primary emphasis was on profits, tuition levels, and tuition trends. The study demonstrates that, contrary to several commonly held assumptions, nonpublic special education schools typically earn very small profits, do not take unfair advantage of state subsidization, and are not primarily motivated by monetary considerations. The data provided and conclusions drawn in this article will hopefully be used by national, state, and local educational agencies in their planning efforts toward meeting the needs of exceptional children.

Quality, quantity and distribution of medical education and care: regulation by the private sector or mandate by government?

The public, the federal government and most state governments have become increasingly concerned with the lack of access to primary care as well as the specialty and geographic maldistribution problems. Currently, there is a race in progress between the private sector and the federal government to devise solutions to these problems. In the federal sector, varying pieces of legislation are under active consideration to mandate the correction of specialty and geographic maldistribution; proposals include: 1) setting up federal machinery to regulate the numbers and types of residencies; 2) make obligatory the creation of Departments of Family Practice in each medical school; 3) withdraw current education support from medical schools causing tuition levels to increase substantially--federal student loans would then provide the necessary leverage to obligate the borrower to two years of service in an under-served area in exchange for loan forgiveness. In the private sector, for the first time in the history of the United States, the five major organizations involved in medical care have organized to form the Coordinating Council on Medical Education (CCME) and the Liaison Committee on Graduate Medical Education (LCGME). One of the initial major endeavors of the CCME has been to address itself to the problem of specialty maldistribution. The LCGME has been tooling up to become the accrediting group for residency training thus providing an overview of the quality and quantity of specialty training. It will be the intent of this presentation to bring the membership of the Southern Surgical Association an up-to-date report on these parallel efforts. The author's personal hope is that the private sector can move sufficiently rapidly to set up its own regulatory mechanisms and avert another federally controlled bureaucracy that will forever change the character of the medical profession in the United States.

Trends in medical school tuition levels 1952-53 to 1972-73

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Medical school tuition levels, 1967-68

Medical school tuition levels, 1967-68