Tuition Revenue Recognition Guidance Issued
The National Association of College and University Business Officers (“NACUBO”) has released a new advisory using tuition to illustrate guidance under Accounting Standards Codification (“ASC”) Topic 606, Revenue From Contracts With Customers. Accounting Advisory 19-01, FASB ASC 606, Revenue From Contracts with Customers: Tuition Revenue, states that a student’s signed financial responsibility agreement authorizes a college or university to consideration, in exchange for promised services, on the date payment is due. The advisory also explains various terms and requirements, including performance obligations, portfolio approach and contract liabilities. More on this Accounting Advisory is available on the NACUBO website.
California Community Colleges Reject Tuition-Free Plan
Amid concerns about high default rates, several California community colleges are rejecting the state’s plan that offers in-state students one year of free tuition. California awards community colleges free tuition aid for participating in the plan, but institutions like Barstow College and Imperial Valley College disagree with the mandate requiring participation in the federal student loan program. The San Bernardino district referenced the recent high federal loan default rate among borrowers at its colleges for rejecting participation in the tuition-free plan. Meanwhile, California Community College system officials oppose the move and believe colleges that aren’t taking part in the federal. Read More.
Public University Students Spending More in Tuition than the Government
According to the State Higher Education Executive Officers Association’s latest report, students in most U.S. states are now covering more of their tuition than the government. The report marks the first time that students are paying more than state governments for education costs. Reasons for the change include lower educational appropriations due to the 2008 recession, and states having trouble funding Medicaid programs and public-employee health and retirement plans. Additionally, such costs are outpacing state tax revenue growth. More on the State Higher Education Executive Officers Association’s report is available on WSJ.com. A subscription is required to access the article.
College Tuition and Fees Still on the Rise
Tuition and fee prices at colleges and universities experienced a modest increase this past year. According to College Board’s annual reports, “Trends in Student Aid” and “Trends in College Pricing,” tuition and fees rose by two percent for the 2017-18 year. In particular, private nonprofit higher institutions averaged a 1.9 percent increase, public four-year colleges rose by 1.2 percent, and public two-year schools climbed by 1.1 percent. Despite the small increases in 2017-18, financial aid for students failed to keep pace with the rising tuition costs. Learn more about the College Board’s annual reports by visiting the Inside Higher Ed website.
SACUBO Meeting Keynote Speaker Discusses Issues Facing Higher Education
Last month, Jim Ratchford , Industry Leader of Cherry Bekaert’s Education Industry Group , attended the Southern Association of College and University Business Officers’ (“SACUBO”) Annual Meeting. While at the meeting Ratchford listened to the keynote speech from Scott Jaschik of Inside Higher Education. Mr. Jaschik shared with attendees various issues currently facing higher education, some of which included the following: The Trump administration is proposing cuts to education programs, including research and work study. International students are choosing higher institutions in countries other than the U.S. Forty (40) percent of U.S. colleges and universities are reporting declines in international applications. Everyone realizes that these students are. Read More.