By Kunal Jasty
College tuition is rising faster than medical costs, inflation, and certainly the income of 99% of Americans. Four years at a private university now costs as much as a new Ferrari, and a student at a public university can expect to graduate $25,000 in debt. But does anyone know where colleges are spending all their money?
Academic Support – Academic administrators, academic deans, libraries.
Instruction – “General academic instruction, occupational and vocational instruction, community education, preparatory and adult basic education, and regular, special, and extension sessions.”
Research – Funding for research institutes, laboratories, and individual research.
Public Service – “Activities established primarily to provide noninstructional services beneficial to individuals and groups external to the institution. Examples are conferences, institutes, general advisory service, reference bureaus.”
Student Services – Admissions, registrars, student activities and organizations, student counseling.
Institutional Support – General administration and management, legal operations, fiscal operations, logistical expenses, public relations.
Operations and Maintenance – Utilities, insurance, maintaining campus buildings and grounds.
Depreciation – Losses in capital assets per year.
Scholarships and Fellowships – Grants, stipends, awards.
Auxiliary Enterprises Expenses – Residence halls, dining services, student health services, athletics, faculty housing.
Hospital Services – All expenses at a university affiliated hospital.
Independent Operations – Expenses “unrelated to the primary missions of the institution (i.e., instruction, research, public service) although they may contribute indirectly to the enhancement of these programs.”
Other expenses – “The amount of money (estimated by the financial aid office) needed by a student to cover expenses such as laundry, transportation, and entertainment.”
Net grant aid to students – The difference in the money a school receives in tuition, fees, room and board, and the amount of scholarships and fellowships it awards.