What Really Drives Tuition

We often hear, from faculty, higher education pundits, and just from random people on the street, that the high cost of college is driven by spending money on college administration. We've all seen the stories about the million dollar lazy river on campus! And while there are a few of those (not paid for by tuition dollars, though), this is hardly the norm.    

In the Chronicle Pricing Survey that I conducted with the Chronicle of Higher Education, we asked college presidents and chief financial officers how important various expenditures and revenue streams were in determining undergraduate tuition this past year.  

About three out of four (74%) college leaders told us that the "cost of faculty" was either "extremely" or "very important" in determining tuition. This was the expenditure of highest concern for them.  

The cost of administration was of concern to many fewer college leaders, with only 44% telling us this was an "extremely" or "very important" consideration in setting tuition.

So, while administrative costs have an impact, it is quite a bit lower than that of the faculty. This is probably as it should be. But not how the issue is perceived.  

College tuition is not largely driven by administrative costs. So the next time you hear someone say other wise, remember that you have the data on your side.

So, how would that work, for higher education professionals? I turned to my friend Gavin Henning, past president of ACPA and snappy dresser, for a consultation. He suggested looking at it from the lens of staff level.

For entry and mid-level, Gavin said, this "helps to provide a counter narrative to what we hear in the news." Sharing this data with colleagues helps to provide data to their experience.

For the mid-level to senior-level staff, this information can be used in budget discussions. Student-affairs professional have student learning at heart, and many students and alumni tell us that their learning was greatly enhanced by their experiences outside the classroom. Student affairs professionals can use this information to stave off budget raids when others think that "administrative bloat" needs to be curtailed. 

Data always contributes to the story if you use it wisely.