The revenues of all private for-profit institutions were more than $20 billion in 2008,with expenditures of about $17.5 billion. At a combined 40 percent federal, state andlocal tax rate, they paid nearly $1 billion in taxes, or an average of $549 per-student.
These tax payments are greater than all of the direct government support private for-profit institutions receive from all levels of government.A final determination of the relative taxpayer support provided to the three classes of institutions of higher education, on a per-student basis, draws on all of these elements
directgovernment grants, appropriations and contracts to institutions from the federal, state and localgovernments; grants, interest subsidies and covered defaults for students provided by federal,state and local governments; and offsetting tax payments paid by the institutions to federal, stateand local governments. The data and analysis show that:
Considering all sources of support, four-year private for-profit institutions receive anaverage of $2,394 per-student in
direct and indirect federal, state and local government support
, compared to $7,065 per-student at four-year private not-for-profit institutionsand $15,540 per-student at four-year public institutions.
Total federal support, direct and indirect
, averages $2,755 per-student at four-yearprivate for-profit institutions, compared to $5,398 per-student at private not-for-profitinstitutions and $5,192 per-student at public institutions. The disparities are even greaterwith regard to direct and indirect support from state and local governments: This supportaverages $236 per-student at the private for-profit institutions, compared to $1,668 per-student at the private not-for-profit institutions and $10,348 per-student at the publicinstitutions.
As already noted, the
total direct support
provided by all levels of government to four-year private for-profit institutions is negative, since they pay greater taxes than theyreceive in direct government grants, appropriations and contracts, by $22 per-student. Incontrast, direct support from all levels of government comes to $4,765 per-student forfour-year private not-for-profit institutions and $13,240 per-student for publicinstitutions.
total indirect support
provided to these institutions by all levels of government,through federal, state and local government student grants, loan subsidies and defaultpayments, is comparable across the three classes of institutions: This support for studentsaverages $2,416 per-student at four-year, private for-profit institutions, compared to$2,301 per-student at four-year private not-for-profits, and $2,300 per-student at four-year public institutions.