Financing Higher Education in the New Century

At the beginning of the 20^th century, 237,592 students and 23,868 faculty “populated” 977 postsecondary education institutions in the United States (U.S. Department of Education, 1999). These institutions spent $35 million to educate students, who were taught in small classes face to face with a professor. In 1900, less than 20 percent of funding for higher education came from public sources (federal, state, or local governments). Families with the means sent their male children off to obtain a higher education, and very little financial aid was available. Performance of institutions was measured only by the success of their students after graduation.