Good Question: What Does Tuition Pay For?
MINNEAPOLIS (WCCO) -- As many college students are getting ready to graduate, they're also getting ready to pay back years of loans.
Over the past decade, average tuition has risen more than 80 percent. That got us wondering -- what does tuition pay for? Good Question.
From college kids, to the parents who pay for college kids, the numbers have bank accounts working overtime to pay for tuition. And it has parents and students wanting to know where their money goes.
"It's hard to find. It's not part of your welcome packet when your application gets accepted," said Elijah Kovar.
Kovar is with Great Waters Financial. He helps students figure out debt. He said the majority of tuition goes to faculty and professors.
"The truth is that that's the largest category. It makes up about 27 percent of where the tuition goes," said Kovar.
The Minnesota Private College Council said they've seen that number be as high as 70 percent at some colleges -- for faculty salaries, plus benefits.
"Then you've got a lot of other costs. Administration. Sports is one that a lot of people are surprised by," said Kovar.
According to RadioOpenSource.org, general research makes up about 12 percent of tuition, hospital services about 11 percent, and resident halls, athletics and dining services together add up to about 9 percent. Construction also gets a piece of the university pie.
"One of the big things they do is they build. They like to build attractive facilities, because when you're touring that's the things that stands out," said Kovar.
Experts said 70 perecnt of students graduate with student loans, averaging $31,000 per graduate.
The University of Minnesota told us they will get about $914 million in tuition in 2017 -- their largest source of revenue.