Using data analysis techniques to connect financial issues of higher education

The purpose of this study was to examine the relation among the endowment ranking of higher education institutions in the United States, new 2005 Carnegie classification of higher education, and college affordability for enrolling students. This was accomplished by extracting a data set from the Integrated Postsecondary Education Data System (IPEDS) representing four-year and up public universities for the year 2004 (N=6916) and the National Association of College and University Business Officer through the yearly NACUBO endowment survey.;The data were analyzed using both parametric and nonparametric methods. These results compared with data mining. Findings from the first focus were that CAI was related to net operating revenue ratio regardless of the method of analysis applied. Findings of the second focus were that CAI was related to Endowment Ranking, but not to Carnegie Classification.;The College Access and Opportunity Act, was passed by the House Education Committee in 2005 and created a College Affordability Index (CAI). This index required reporting and other actions by institutions whose tuition and fees exceeded the index limit. The study also examined the new Carnegie classification of higher education issued in 2005 and its relation between endowment size rankings. As the importance of research activities and "moving up" to extensive research classification is the goal of many universities, the extraordinary effort of fund raising will bridge the gap of public funding. Furthermore, with both the tuition deregulation and state appropriations constrained, the relation between College Affordability and College Financial Health becomes a critical issue. Hence, it was conjectured that an association existed among the overall endowment ranking and Carnegie classification of an institution and its College Affordability Index.