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CHAPTER III 
ALLOCATION OF HIGHER EDUCATIONAL COSTS 
Two Phases 
The allocation of higher educational costs ties up closely with the pur- 
poses for which such education is maintained. The three purposes which 
have been found to be cultural, political, and economic, bring up the ques- 
tion as to what the sources of support for higher education are and how 
these sources ally themselves with the purposes. The present sources of 
support together with the proportion that each bears to the whole and to 
each other have just been examined. The question now arises as to 
whether they and their present interratios are satisfactory in view of 
the purpose for which higher education is being conducted, and if not, 
what would be a proper ratio, and how could such a ratio be established ? 
In the allocations of higher educational costs there are two phases to 
be dealt with: 
1. The allocation to society, to the philanthropist, and to the individual 
who is the recipient of the education. 
2. The allocation within the institution among the various schools, 
faculties, classes, and individuals attending; these costs to be allo- 
cated proportionately to the purposes which such education serves. 
Costs and Increased Enrollments 
The number who have availed themselves of the opportunity for a 
College or university education has been steadily growing and causing our 
educational equipment to become inadequate. We have adhered to old 
views without any regard for the changing phases of our social and eco 
nomic organization. The increased costs due to greater enrollment and 
more expensive educational equipment have not been fully taken into 
account in fixing charges for educational Services. The result has been a 
call for additional endowments and larger appropriations. This naturally 
has raised questions concerning the advisability of investing more money in 
higher education. It has resulted in developing three points of view as to 
what proportion of this cost society and philanthropy should bear and the 
Charge for tuition or the price that should be paid by the individual receiv- 
ing the university or College education. There is necessarily a ratio here 
between the benefits received by the different parties contributing to the 
support of higher education and the proportion of the cost paid by each. 
Whether this ratio is a true or false one has never been determined, nor 
has the problem ever been scientifically studied.