Factors Affecting the Demand for Higher Education at Public Institutions

This study was conducted to determine the responsiveness of student demand for public higher education at increasing rates of tuition and fees which correspond to the rates charged by private and out-of-state public colleges and universities. Particular attention was paid to the potential substitution and allocation effects of specific rates of tuition and fees associated with proposed state personal income tax that had not been favorably acted upon by the state assembly. The subjects were students attending a commuter campus and a unit of a major state university. Subjects were surveyed several months before the effective date of the tuition and fee increase, when the precise rate was unknown. The results of the study indicate that the important variables to consider in setting tuition and fees are user n-migrant status, percent of current expense paid by the student, source of funds, college major, and classification. The ratio of in-migrants to users is probably one of the most important factors, along with the level of tuition and fees at other institutions of comparable size and quality.