College Cost

-by Bangsheng Sui

Outlines

• Background• Objective• Data• Results• Conclusions• References

Background

• College cost is now a very hot topic. For a long time, people don’t pay much attention on college cost. But now the situation has changed.

• It seems to be out of control. Even in the recession, it keeps going high rapidly.

Objective

• find out what causes the college cost increasing so rapidly and how college cost affects other aspects of college.

Data

• 4 universities are selected. They are University of Houston, University of Florida, Rice University and Massachusetts Institute of Technology

• The data for this research are collected from the internet.

• One decade 2000-2009

Results

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

0.5

1

1.5

2

2.5

3

3.5

4x 10

4

University of Houston

University of Florida

Rice University

Masachusetts Institute of Technology

Results

• the tuition and fees of each university goes up all the way within this decade.

• trends of these four universities are almost the same. How can we get such consistent result since they are located in different places.

• What is the only one thing they are in common with each other?

Resultstuition and fees vs.room and board

2000 2001 2002 2003 2004 2005 2006 2007 2008 20094000

5000

6000

7000

8000

9000

10000

11000

tuition and fees

room and board

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090.5

0.6

0.7

0.8

0.9

1

1.1

1.2

1.3

1.4

1.5x 10

4

tuition and fees

room and board

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090.5

1

1.5

2

2.5

3x 10

4

tuition and fees

room and board

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090.5

1

1.5

2

2.5

3

3.5

4x 10

4

tuition and fees

room and board

Tuition and fees vs. room and board

• The correlation between tuition and fees and room and board for these four figures are 0.90, 0.96, 0.99 and 0.99.

• The tuition and fees has increased by 117%, 128%, 76% and 48% while the room and board has increased by 55%, 49%, 65% and 68%.

• On average, the tuition and fees has increased by 92% while the room and board has increased only 59%.

Tuition and fees vs. total students

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

5000

10000

15000

2000 2001 2002 2003 2004 2005 2006 2007 2008 20093.2

3.4

3.6

3.8x 10

4

tuition and fees

total of students

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090.6

0.8

1

1.2

1.4

1.6x 10

4

2000 2001 2002 2003 2004 2005 2006 2007 2008 20094.2

4.4

4.6

4.8

5

5.2x 10

4

tuition and fees

total of stutents

2000 2001 2002 2003 2004 2005 2006 2007 2008 20091.5

2

2.5

3x 10

4

2000 2001 2002 2003 2004 2005 2006 2007 2008 20094000

4500

5000

5500

tuition and fees

total students

2000 2001 2002 2003 2004 2005 2006 2007 2008 20092.5

3

3.5

4x 10

4

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090.98

1

1.02

1.04x 10

4

tuition and fees

total students

Tuition and fees vs. total students

• The correlations between tuition and fees and total students are 0.72, 0.93, 0.98 and 0.64. The total of students of each university has increased by 12%, 17%, 24% and 4%.

Tuition and fees vs. total degree awarded

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

5000

10000

15000

2000 2001 2002 2003 2004 2005 2006 2007 2008 20095000

6000

7000

8000

tuition and fees

total degree awarded

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090.6

0.8

1

1.2

1.4

1.6x 10

4

2000 2001 2002 2003 2004 2005 2006 2007 2008 20091

1.1

1.2

1.3

1.4

1.5x 10

4

tuition and fees

total degree awarded

2000 2001 2002 2003 2004 2005 2006 2007 2008 20091.6

1.8

2

2.2

2.4

2.6

2.8

3x 10

4

2000 2001 2002 2003 2004 2005 2006 2007 2008 20091150

1200

1250

1300

1350

1400

1450

1500

tuition and fees

total degree awarded

2000 2001 2002 2003 2004 2005 2006 2007 2008 20092.5

3

3.5

4x 10

4

2000 2001 2002 2003 2004 2005 2006 2007 2008 20093100

3200

3300

3400

tuition and fees

total degree awarded

Tuition and fees vs. total degree awarded

• The correlations between tuition and fees and total degree awarded are 0.95, 0.98, 0.95 and 0.21. The total of degree awarded of each university has increased by 31%, 32%, 26% and 1%.

• if tuition and fees increases by $4, the total degree awarded by college will increase by 1.

Total faculty and total staff

4000 5000 6000 7000 8000 9000 10000 11000900

1000

1100

1200

1300

tuition and fees

4000 5000 6000 7000 8000 9000 10000 110003800

4000

4200

4400

4600

total faculty

total staff

0.6 0.7 0.8 0.9 1 1.1 1.2 1.3 1.4 1.5

x 104

1500

2000

2500

tuition and fees

0.6 0.7 0.8 0.9 1 1.1 1.2 1.3 1.4 1.5

x 104

1

1.2

1.4x 10

4

total faculty

total staff

1.6 1.8 2 2.2 2.4 2.6 2.8 3

x 104

400

450

500

550

600

tuition and fees

1.6 1.8 2 2.2 2.4 2.6 2.8 3

x 104

1800

2000

2200

2400

2600

total faculty

total staff

2.5 3 3.5 4

x 104

900

950

1000

1050

1100

1150

1200

1250

tuition and fees

2.5 3 3.5 4

x 104

6500

7000

7500

8000

8500

9000

9500

10000

total faculty

total staff

Total faculty and total staff• The correlations between tuition and fees and total faculty are 0.74, 0.83,

0.98 and 0.96 respectively. The total faculty of each university has increased by 33%, 46%, 38% and 33%.

• The correlations between tuition and fees and total staff are 0.95, 0.96, 1 and 0.98. The total staff of each university has increased by 20%, 21%, 31%, and 39%.

• The total of staff has increased by 28% and total of faculty has increased by 37.5% while the total of students has only increased by an average of 14%.

• that if tuition and fees increases by $100, the total faculty will increase by 4 and the total staff will increase by 16 on average.

Total salary for faculty and total salary for staff

4000 5000 6000 7000 8000 9000 10000 1100050

60

70

80

90

100

110

tuition and fees

4000 5000 6000 7000 8000 9000 10000 11000120

140

160

180

200

220

240

total salary for faculty

total salary for staff

0.6 0.7 0.8 0.9 1 1.1 1.2 1.3 1.4 1.5

x 104

100

200

tuition and fees

0.6 0.7 0.8 0.9 1 1.1 1.2 1.3 1.4 1.5

x 104

500

1000

total salary for faculty

total salary for staff

1.6 1.8 2 2.2 2.4 2.6 2.8 3

x 104

30

40

50

60

70

tuition and fees

1.6 1.8 2 2.2 2.4 2.6 2.8 3

x 104

80

100

120

140

160

total salary for faculty

total salary for staff

2.5 3 3.5 4

x 104

50

100

150

200

tuition and fees

2.5 3 3.5 4

x 104

500

600

700

800

total salary for faculty

total salary for staff

Total salary for faculty and total salary for staff

• The correlations between tuition and fees and total salary for faculty are 0.93, 0.93, 0.99 and 0.97. The total salary for faculty of each university has increased by 81%, 90%, 74% and 73%.

• The correlations between tuition and fees and total salary for staff are 0.94, 0.99, 1 and 0.98. The total salary for staff of each university has increased by 76%, 49%, 82% and 55%.

• If the tuition and fees increased by $1, the total salary for staff will increase by $20,000 while the total salary will increase by $6,000.

Total revenue and total funding

4000 5000 6000 7000 8000 9000 10000 11000400

500

600

700

800

tuition and fees

4000 5000 6000 7000 8000 9000 10000 11000100

110

120

130

140

total revenue

total funding

0.6 0.7 0.8 0.9 1 1.1 1.2 1.3 1.4 1.5

x 104

1200

1400

1600

1800

2000

2200

2400

tuition and fees

0.6 0.7 0.8 0.9 1 1.1 1.2 1.3 1.4 1.5

x 104

900

1000

1100

1200

1300

1400

1500

total revenue

total funding

1.6 1.8 2 2.2 2.4 2.6 2.8 3

x 104

250

300

350

400

450

500

tuition and fees

1.6 1.8 2 2.2 2.4 2.6 2.8 3

x 104

70

80

90

100

110

120

total revenue

total funding

2.5 3 3.5 4

x 104

1000

2000

3000

tuition and fees

2.5 3 3.5 4

x 104

1000

1200

1400

total revenue

total funding

Total revenue and total funding• The correlations between tuition and fees and total revenue are

0.98, 0.97, 0.97 and 0.93.The total revenue of each university has increased by 77%, 67%, 68% and 62%.

• The total funding of each university has increased by 25%, 40%, 56% and 33%.

• The total revenue of college has increased by 68.5% on average while the total funding has just increased by 38.5%.

• the total revenue will increase by $70,000 if tuition and fees increased by $1.

Total financial aid

4000 5000 6000 7000 8000 9000 10000 11000100

110

120

130

140

150

160

170

180

tuition and fees

financial aid

0.6 0.7 0.8 0.9 1 1.1 1.2 1.3 1.4 1.5

x 104

160

180

200

220

240

260

tuition and fees

financial aid

1.6 1.8 2 2.2 2.4 2.6 2.8 3

x 104

25

30

35

40

45

50

55

60

65

70

tuition and fees

financial aid

2.5 3 3.5 4

x 104

220

240

260

280

300

320

340

360

380

tuition and fees

financial aid

Total financial aid

• The correlations between tuition and fees and financial aid are 0.72, 0.98, 0.95 and 0.98.The financial aid of each university has increased by 73%, 60%, 127% and 58%.

• The financial aid has increased by 80% on average. This is approximate to the increment of tuition and fees.

• means if tuition and fees increases by $1, the total financial aid will increase by $8,000.

Total assets

4000 5000 6000 7000 8000 9000 10000 110000.8

0.9

1

1.1

1.2

1.3

1.4

1.5

tuition and fees

total assets

0.6 0.7 0.8 0.9 1 1.1 1.2 1.3 1.4 1.5

x 104

1.5

2

2.5

3

tuition and fees

total assets

1.6 1.8 2 2.2 2.4 2.6 2.8 3

x 104

2.5

3

3.5

4

4.5

5

5.5

6

6.5

tuition and fees

total assets

2.5 3 3.5 4

x 104

8

9

10

11

12

13

14

15

16

tuition and fees

total assets

Total assets

• The correlations between tuition and fees and total assets are 0.86, 0.94, 0.91 and 0.89.

Conclusions

• Improve conditions• Hire more employees• Cause another considerable amount of money• Result in expanding budget• Funding can’t meet the increment of the

budget

Conclusions

• By calculating the correlation, we realize that many of the data items in this research have ideally positive linear relationships with the tuition and fees like

• room and board• total salary for faculty• total salary for staff• total revenue• total financial aid • total assets

Website• http://www.uh.edu/ir/index.php?id=17 the institutional research office of

University of Houston

• http://www.uh.edu/finance/StateReport/AFR/AFR_HOU/ the annual financial reports of University of Houston

• http://www.ir.ufl.edu/facts.htm the institutional research office of University of Florida

• http://www.fa.ufl.edu/ga/ the annual financial reports of University of Florida

• http://www.professor.rice.edu/professor/Selectivity-Tuition.asp?SnID=2043411922 the institutional research office of Rice University

• http://www.professor.rice.edu/professor/Financial_Statement.asp?SnID=501627633 the annual financial reports of Rice University

• http://web.mit.edu/ir/cds/2009/index.html the institutional research office of Massachusetts Institute of Technology

• http://web.mit.edu/annualreports/ the annual reports to the president of Massachusetts Institute of Technology

• http://nces.ed.gov/ipeds/datacenter/ the Data Center of IPEDS

• http://www.aaup.org/aaup the website of AAUP-American Association of University Professors

•Questions?

•Thank you!