Summary: Since the mid-1980s, the costs of higher education in America have steadily shifted from the taxpayer to the student and family. As state funding has dwindled, colleges and universities have sought to fill these gaps through a variety of avenues, including philanthropy and research support, but the area of highest growth has been tuition.

The share of institutional budgets provided by tuition increased from 22% in 1985 to 36% in 2005. As state budgets slip further into structural deficit, there is no reason to think this trend will reverse itself.

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