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College student outcomes and state funding are intertwined, report finds

May 19, 2021

SHEEO found that 42 states decreased appropriations for public colleges’ operations between 2001 and 2019, after adjusting for inflation. However, 34 states increased money for student grant aid during the same time period.

Public, four-year colleges tend to boost tuition to offset those reductions, the report stated. A 10% reduction in state funding to those schools leads to a 1.1% increase in enrollment-weighted tuition and a 0.7% increase in sticker price, with growth in the latter being slightly higher at state flagships.

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