Trends in Revenues at US Colleges and Universities, 1987-2013

This Economic Commentary studies trends in inflated-adjusted revenues per student at US colleges and universities in broad revenue categories between 1987 and 2013. The findings show that, as is widely perceived, tuition revenue has risen over time at both public and private institutions. In recent years, tuition revenue at public institutions has been nearly as large a source of revenue as state and local government funding has been. Revenue from state and local governments has fluctuated at public institutions but has generally fallen over time, whereas funding from the federal government has risen. Investment returns are a large and highly variable source of revenue, especially for private institutions.