High College Costs Driven By Deceptive Accounting Practices – IOTW Report

High College Costs Driven By Deceptive Accounting Practices

DC: Widespread use of an accounting trick at public universities may be artificially driving up the reported cost of an undergraduate education, The Daily Caller News Foundation has learned.

Policymakers at the federal and state level rely on financial data collected by the Department of Education from about 7,500 colleges and universities for use in drafting sound policy.

It has become increasingly more expensive for universities to deliver an undergraduate education, according to the data. Reported per-student educational expenditures at public four-year universities rose 16 percent from 2005 to 2015 in inflation-adjusted dollars.

Some experts believe the data reported by universities is a gross overstatement of the true cost of undergraduate education because of an accounting convention that allows universities to “disguise” research expenditures within their reported instructional costs.

Richard Vedder, the director of the Center for College Affordability and Productivity, told TheDCNF that the financial information reported by universities is a “purposeful misrepresentation” of the true cost of educating students.

“Universities are fundamentally overstating instructional expenditures and fundamentally understating research expenditures,” Vedder told TheDCNF.  read more

4 Comments on High College Costs Driven By Deceptive Accounting Practices

  1. no longer are our higher education institutions instruments of higher learning.

    they have been taken over by the progressive left and one world government activists and have become places of extortion and indoctrination.

    they extort money from students in return for degrees which are mainly useless.

    they extort money from government to keep indoctrinating the students into their “hive” group think.

    they perform their necessary purpose for the bankers and thus are allowed to suck at the tit of the taxpayers.

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