Colleges and Universities don’t think about finances in the way that businesses do. Cost becomes a derivative number not one that is the focus of the budgeting process. (The Original Diagram was developed by Gordon Winston at the Williams Center for Higher Education).
Unlike many purchases in society we think about college finances from a time based perspective (based on whether the funding is from savings, borrowing or current income) or a source based perspective (who provides the funds) – nearly every student uses a combination of both time based and source based resources to pay for college. NO student pays the full cost of their educations but the relationships of which type of funding and where the funds are sourced vary significantly by student. There are a lot of opportunities for creative thought about how this complex model can be simplified.
© Jonathan Brown 2021