How much do colleges and universities spend on students?
In academic year 2013–14, postsecondary institutions in the United States spent approximately $517 billion (in current dollars). Total expenses were nearly $324 billion at public institutions, $173 billion at private nonprofit institutions, and $21 billion at private for-profit institutions.
Instruction, including faculty salaries and benefits, is the largest single expense category at public and private nonprofit postsecondary institutions. In 2013–14, instruction accounted for 26 percent of total expenses at public institutions, 33 percent of total expenses at private nonprofit institutions, and 27 percent of total expenses at private for-profit institutions. The largest expense category at private for-profit institutions in that year was for the combined expenses of student services, academic support, and institutional support (63 percent), which includes expenses associated with admissions, student activities, libraries, and administrative and executive activities. By comparison, student services, academic support, and institutional support made up 20 percent of total expenses at public institutions and 30 percent of total expenses at private nonprofit institutions. Combined expenses for research and public service constituted 13 percent and hospitals constituted 11 percent of total expenses at public institutions. At private nonprofit institutions, research and public service combined, hospitals, and auxiliary enterprises (i.e., self-supporting operations, such as residence halls) constituted 12, 10, and 9 percent of total expenses, respectively.
Percentage of total expenses at degree-granting postsecondary institutions, by purpose of expenses and control of institution: 2013–14