In both the public and private not-for-profit sectors, average tuition charges increased at a faster rate than inflation over the period of the analyses, and tuition charges also increased faster than most expenditure categories within the institutions. The share of overall revenue coming from tuition has increased on average for all institutional types in both sectors, compared with relative decreases in other revenue sources.

Across all types of public institutions, in-state undergraduate tuition and fees increased annually—by an average of 4.1 percent at research/doctoral institutions, 4.2 percent at comprehensive institutions, 4.3 percent at bachelor’s institutions, and 3.4 percent at 2-year institutions—between 1988–89 and 1997–98 (figure 3). On average, gross tuition revenue accounted for increasing proportions of total educational and general (E&G)⁴ revenue over this period, while revenue from state appropriations declined as a proportion of the total.

Across all types of private not-for-profit institutions, undergraduate tuition and fees increased annually—by an average of 3.6 percent at research/doctoral institutions, 4.1 percent at comprehensive institutions, and 3.7 percent at bachelor’s institutions—between 1988–89 and 1995–96 (figure 4). On average, gross tuition revenue accounted for increasing proportions of total E&G revenue over this period. At the same time, the proportion of E&G revenue from endowment income and private gifts, grants, and contracts decreased.