How Much Do Colleges Make on Rejected Applications?

How Much Do Colleges Make on Rejected Applications?

How Much Do Colleges Make? Have you ever contemplated on how Colleges make money? If yes, then this article is for you. It may interest you to know that colleges make lots of money from various sources.

Though, some of these colleges are branded as not for profit, they still generate money. The way they generate this money may be a mystery to some persons.

How Much Colleges Make on Rejected Applications

This article shall unravel how much colleges make. It shall also discuss the sources of their money.

What to Know About Colleges

It is important you know this. While they accomplish different tasks, universities are businesses. Whether for-profit or not, they operate on a budget. Also, they pay their employees.

Administrators manage huge sums of cash. Some sources of revenue come with stipulations on how they must be spent. Also, others come with exactly zero strings attached.

Those without strings attached, sometimes serves as a revenue source. Universities make money in surprising ways. In 2016, public non-profits colleges netted nearly $300 billion collectively. Private non-profits took in over $180 billion. On the hand, for-profits managed $13.5 billion.

College Sources of Revenue

The following are where colleges make money from:

  • Tuition Fees

One of the sources of the money for colleges is tuition fees. Also, it is important you know that public university tuition has tripled. It has tripled over the last thirty years. As such, it stands as the most significant source of revenue.

Tuition fees makes up an average of 21.5% of revenue. This is for public non-profit universities’ revenue. At private non-profit universities, the figure nearly doubles to 39.3%.

Meanwhile, private for-profits collect over 90% of their revenue from tuition and fees.

  • Sales and Services of Hospitals

Also, it is important you know that profits from healthcare is another source of revenue. The hospital is one of the largest industries in the U.S.

Please note that higher institutions are some major beneficiaries here. Sales and services in healthcare total nearly 15% of their revenue. This is particularly related to public non-profits. However, at private non-profits, that figure is 13.3%.

If you are after a well-funded university, seek out one with a robust medical program. The profits they make likely translate into bigger cushions. This is found in the budgets of other departments as well.

  • Rejected Applications

Another means of making money for colleges is through rejected applications.

What Colleges make from Rejected Applications

How much Colleges make from Rejected Applications

  • Harvard University

As of fall 2017, Harvard University dropped the Law School Admissions Test. This was a requirement for law school applicants.

It is important you know that this will reduce the number of people being admitted. Also, on the other hand, it will increase the number of submitted applications.

And at $75 per application, Harvard stands to benefit too, in the form of more revenue. Already, Harvard makes nearly $3 million in gross profits off of rejected applications each year.

  • University of California-Los Angeles

University of California-Los Angeles make $5,369,840 from rejected applications.

  • University of California-Berkeley

Also, this is another university that makes money from rejected applications is University of California-Berkeley. The University of California-Berkeley makes $4,681,320 a year.

  • Stanford University

Stanford University is another college that makes money from rejected applications. If you desire to know how much this college makes, it makes $3,632,130 a year.

  • University of California-San Diego

This college makes the sum of $3,608,290 from rejected applications every year.

  • University of Southern California

This university makes the sum of $3,419,440 from rejected applications.

What other Colleges Make

  • University of California-San Diego

The revenue from declined applications for this university is $3,620,820. Revenue from total applications however is $5,522,510. Also, the application fee is $70.

  • University of Southern California

While digging up how much colleges make, please note. This university makes the sum of $3,419,440 from rejected applications. Its revenue from total applications is $4,153,920. The application fee here is $80.

  • University of California-Santa Barbara

On how much colleges make from rejected applications, this college makes $3,325,700. The revenue from total applications is $4,937,520. Also, note that the application fee is $70.

  • University of California-Irvine

Still on how much colleges make from declined applications, this school makes $3,080,770. Its revenue from total applications is $5,024,250. Also, the application fee is $70.

  • Boston University

Revenue made from declined applications by this school is $2,952,800. Its revenue from total applications is $4,382,480. Bear in mind that the application fee is $80.

  • Columbia University

Also, on how much colleges make from rejected application, this university makes $2,930,205. The revenue from total applications is $3,137,435, while the application fee is $85.

  • University of Michigan-Ann Arbor

The revenue of this university from declined applications is $2,863,950. The total revenue from applications is $3,884,775. Also the application fee is $75.

In a Nutshell

Thus, your curiosity should have been eased up on how much colleges make. Also, your desire to know their source of revenue may have been addressed.

In a Nutshell

And, for students, college applications are one more step in the tedious process. However, for colleges, applications serve as something else entirely. It serves as a revenue stream.

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