May 17, 2014

Where Does All That Money Go?

Where Does All That Money Go?

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.

Source: National Center for Education Statistics IPEDS glossary. Data from NCES.

Related Content