Examining Trends in Living Allowances for College

The National Center for Education Statistics released a new report and data on trends in the cost of attendance for different types of colleges, including data from the 2012-13 to 2014-15 academic years. The report shows that, among colleges operating on a traditional academic year basis (excluding most vocationally-oriented colleges), tuition and fees generally increased at a rate faster than inflation among public and private nonprofit colleges over the last two years. However, tuition failed to keep up with inflation in the for-profit sector and allowances for other living expenses (such as transportation and laundry) declined over the past two years after taking inflation into account.

I dug deeper into the data, looking at the percentage of colleges by sector that increased, decreased, or held constant each of the cost of attendance components (tuition/fees, room and board, books and supplies, and other living expenses) between 2013-14 and 2014-15—without adjusting for inflation. I focused on students living off-campus without their family, as colleges have the ability to determine the room and board allowance but do not directly receive any housing revenue for off-campus students. (My blog post on the topic last year ended up connecting me to Braden Hosch at Stony Brook and Sara Goldrick-Rab at Wisconsin-Madison, and we’ve dug deeper into the accuracy and consistency of these estimates in a working paper.)

The results (below) show that for-profit colleges were far more likely to lower tuition and fees than public or private nonprofit colleges. While 75% of public colleges and 85% of private nonprofits increased tuition, just 42% of for-profit colleges did so. For-profits were also more likely to lower books/supplies and other living expense allowances, although the typical allowance was still higher than for nonprofit colleges. A majority of colleges across sectors increased room and board, while most colleges did not change their allowances for books and supplies.

 

Table 1: Changes in COA components by sector, 2013-14 to 2014-15.
Private nonprofit
Characteristic (2014-15) Public For-profit
Cost of attendance, students living off-campus without family
  Median ($) 18,328 37,900 28,796
  Increased from 2013-14 (pct) 77.8 84.9 56.3
  No change from 2013-14 (pct) 7.2 5.8 8.2
  Decreased from 2013-14 (pct) 15.0 9.3 35.5
Tuition and fees
  Median ($) 4,200 24,670 14,040
  Increased from 2013-14 (pct) 74.9 84.6 42.3
  No change from 2013-14 (pct) 19.5 11.0 38.5
  Decreased from 2013-14 (pct) 5.7 4.4 19.2
Room and board
  Median ($) 8,280 9,000 7,574
  Increased from 2013-14 (pct) 55.1 56.4 59.2
  No change from 2013-14 (pct) 34.6 34.5 28.2
  Decreased from 2013-14 (pct) 10.4 9.2 12.5
Books and supplies
  Median ($) 1,265 1,200 1,380
  Increased from 2013-14 (pct) 37.8 23.1 25.7
  No change from 2013-14 (pct) 54.4 69.3 59.1
  Decreased from 2013-14 (pct) 7.8 7.6 15.2
Other living expenses
  Median ($) 3,742 3,150 5,000
  Increased from 2013-14 (pct) 42.0 35.1 35.5
  No change from 2013-14 (pct) 36.8 48.9 27.4
  Decreased from 2013-14 (pct) 21.2 16.0 37.1
Number of colleges 1,573 1,233 719
SOURCE: Integrated Postsecondary Education Data System.
Note: Limited to colleges reporting costs on an academic year basis.

Yet as was noted in last year’s blog post on this topic, some colleges set room and board allowances that are unreasonably low by any standard. This year, I focused on the 27 colleges that reduced their room and board allowance for off-campus students by at least $3,000 between 2013-14 and 2014-15. Some of the changes may be reasonable, such as Thomas University’s drop from $15,200 to $10,530 for nine months of room and board. But many others are unlikely to meet any standard of reasonableness. For example, Emory & Henry College in Virginia reduced its allowance from $11,800 for nine months to just $3,000, while the College of DuPage in Illinois cut its allowance from $8,257 to $2,462. Good luck trying to rent an apartment and eating ramen on that budget!

Table 2: Colleges with large declines in off-campus room and board allowances, 2013-14 to 2014-15.
Name State 2013-14 2014-15 Change
Emory & Henry College VA 11,800 3,000 -8,800
Atlanta Metropolitan State College GA 10,753 3,160 -7,593
Mount Carmel College of Nursing OH 13,392 6,380 -7,012
Vanguard University of Southern California CA 11,286 4,600 -6,686
Louisiana Delta Community College LA 15,322 8,789 -6,533
Trinity College of Nursing & Health Sciences IL 12,346 5,858 -6,488
Arkansas Northeastern College AR 11,969 6,102 -5,867
College of DuPage IL 8,257 2,462 -5,795
College of the Mainland TX 11,330 5,665 -5,665
Randolph-Macon College VA 9,200 3,650 -5,550
The University of Texas at Brownsville TX 11,495 6,250 -5,245
SAE Institute of Technology-Nashville TN 15,000 10,000 -5,000
Bon Secours Memorial College of Nursing VA 15,000 10,000 -5,000
Thomas University GA 15,200 10,530 -4,670
Davenport University MI 8,692 4,340 -4,352
Southwestern Illinois College IL 8,516 4,280 -4,236
Lee University TN 11,650 7,520 -4,130
Grace School of Theology TX 12,684 8,584 -4,100
Prairie View A & M University TX 11,289 7,197 -4,092
NY Methodist Hospital Center for Allied Health Education NY 17,568 13,496 -4,072
College of Business and Technology-Flagler FL 12,000 8,320 -3,680
College of Business and Technology-Miami Gardens FL 12,000 8,320 -3,680
Anoka Technical College MN 10,356 6,994 -3,362
Central Penn College PA 6,855 3,500 -3,355
St Margaret School of Nursing PA 9,960 6,640 -3,320
Fortis Institute-Port Saint Lucie FL 12,732 9,495 -3,237
Southern California Seminary CA 14,616 11,493 -3,123
SOURCE: Integrated Postsecondary Education Data System.
Note: Limited to colleges reporting costs on an academic year basis.

Why do some colleges feel pressures to cut back living allowances? It’s all about accountability. The amount of loan dollars students can borrow is limited by the cost of attendance, meaning that reducing living allowances (and hence the cost of attendance) reduces borrowing—and potentially the risk of a college facing sanctions for high student loan default rates. The cost of attendance also determines the net price (the COA after grants are applied), an important accountability metric. Since colleges don’t directly benefit financially from a higher off-campus living allowance, they have an incentive to reduce the living allowance while continuing to increase tuition.

Author: Robert

I am an assistant professor of higher education at Seton Hall University. All opinions are my own.

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