Higher Education: Tuition Continues to Rise, but Patterns Vary by
Institution Type, Enrollment, and Educational Expenditures	 
(28-NOV-07, GAO-08-245).					 
                                                                 
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?				 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-08-245 					        
    ACCNO:   A78438						        
  TITLE:     Higher Education: Tuition Continues to Rise, but Patterns
Vary by Institution Type, Enrollment, and Educational		 
Expenditures							 
     DATE:   11/28/2007 
  SUBJECT:   Colleges and universities				 
	     Cost control					 
	     Education or training costs			 
	     Fees						 
	     Financial management				 
	     Graduate education 				 
	     Higher education					 
	     Minorities 					 
	     Minority education 				 

******************************************************************
** This file contains an ASCII representation of the text of a  **
** GAO Product.                                                 **
**                                                              **
** No attempt has been made to display graphic images, although **
** figure captions are reproduced.  Tables are included, but    **
** may not resemble those in the printed version.               **
**                                                              **
** Please see the PDF (Portable Document Format) file, when     **
** available, for a complete electronic file of the printed     **
** document's contents.                                         **
**                                                              **
******************************************************************
GAO-08-245

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 [email protected]. 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
nationï¿½s 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 
Educationï¿½s 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 bachelorï¿½s 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 ï¿½ 46 percent ï¿½ 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 masterï¿½s 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 masterï¿½s 
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 ï¿½ 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 ï¿½ 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, masterï¿½s 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, masterï¿½s 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, masterï¿½s 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, masterï¿½s; 
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 institutionsï¿½ 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] ï¿½Institutional expenditures on educationï¿½ 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 ï¿½other 
expenses,ï¿½ 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 
bachelorï¿½s/masterï¿½s-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 ï¿½net,ï¿½ 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: [email protected]: 
Automated answering system: (800) 424-5454 or (202) 512-7470: 

Congressional Relations: 

Gloria Jarmon, Managing Director, [email protected]: 
(202) 512-4400: 
U.S. Government Accountability Office: 
441 G Street NW, Room 7125: 
Washington, D.C. 20548: 

Public Affairs: 

Chuck Young, Managing Director, [email protected]: 
(202) 512-4800: 
U.S. Government Accountability Office: 
441 G Street NW, Room 7149: 
Washington, D.C. 20548: 
*** End of document. ***