The number of colleges and universities facing financial difficulty is rising rapidly, and the pressures upon these institutions will be exacerbated by the arrival of the "demographic cliff " (18 years out from the fall in birth rates during the 2008/09 economic downturn) in 2026/27. The Forbes annual financial ranking of academic…

The article is an analysis which focuses on the years after the Great Recession, to show the interplay between federal and state policies. The first year after American Recovery and Reinvestment Act (ARRA) federal stimulus funds ended, Fiscal Year (FY) 2012, coincided with new federal Pell Grant eligibility restrictions. State appropriations for…

New York State (NYS) launched the Excelsior Scholarship in 2017. It is designed to make college tuition-free for students who attend publicly funded institutions and meet certain criteria. Is this scholarship a good investment for taxpayers of NYS? How long does it take taxpayers to recover their investment? This case analysis takes a perspective…

The Pell Grant is the foundational need-based student aid program in the United States, providing students of lower socio-economic status a pathway to afford college costs and educational expenses. Currently, over one-third of all U.S. undergraduate students receive Pell. This paper examines federal Pell assistance and institutional costs for…

This study examined how public higher education institutions in the U.S. determine international student residency classification for tuition purposes and the cost of international student fees. Using a non-experimental research design, the data were collected from 229 public colleges and universities in the U.S. awarding bachelor's degree or…

This paper examines how colleges respond to the introduction of broad merit aid programs. Previous research has emphasized the impact of merit aid on enrollment, student choices, and post-matriculation outcomes. Yet much less is known about how state-implemented merit aid programs affect colleges' financial decisions. To explore impacts, college…

This study examines the impact of "Promise" programs on postsecondary institutions' decision-making. Promise programs have garnered widespread attention in the U.S., especially after the announcement of the Kalamazoo Promise, but relatively little scholarly research. Promise programs provide grant aid to all students from a particular…

The effect of state funded merit aid for college tuition on student performance in high school has been largely ignored by the current literature on merit aid programs, even though one aim of these programs is to provide incentives for increased academic achievement in high school. To test for such effects, we employ a selection model for…

This study explores the impact of state-level guaranteed tuition laws on state general appropriations for higher education. Using the "Truth-in-Tuition" law that was implemented in Illinois in 2004 as the treatment condition, this study analyzes data from 2000-2012. To test the direction and size of the effect on state general…

Higher education affordability is a complex concept that reflects resources available from multiple parties, the remaining cost of education, and the ability of students and families to pay the balance. States play a key role in determining the affordability of higher education for students attending public institutions. Yet decisions are made…

With tuition revenues replacing state appropriations as the primary source of public university funding, it becomes difficult for universities to use historically based budget allocations and inflexible tuition structures to subsidize high-cost programs. It is argued here that combining targeted subsidies with a flexible tuition structure and…

Over the postwar period in most developed countries, the university participation rate has risen steadily to well over 30 percent, although there remain differences between countries. Students from lower income families have lower participation rates than those from higher income families. The article provides an economic analysis of these…

Previous research has shown that Tax Revolt Provisions (TRPs) aimed at limiting state government revenues and/or expenditures, negatively impact public higher education funding. This analysis explores the influence of these same types of policies on average in-state undergraduate tuition and fees at public four-year colleges and universities.…

This paper examines the debate in the U.S. Senate over the reasons why state governments have decreased funding for higher education. One side believes that federal mandates on states to pay for Medicaid have forced them to reduce spending on higher education. The other side believes that states unwisely reduced taxes, which decreased their…

In the United States, public higher education finance policy is primarily decided at the state level, and policies can vary dramatically across state lines. Data was used from 1989-1990 and 2008-2009 to describe these differences and how they have changed over time. Numerous aspects of each state's higher education system were examined--average…