This month’s Notable Numbers includes highlights from the 2025 INDEX Data Trends Report delivered at the October HOS/CFO Conferences.
Revenue Growth Outpaces Expense Growth
Since 2017-18, average revenue per student has increased 30%, while average expense per student has grown 27%. Although revenue growth did not exceed expense growth in every individual year, over the seven-year period, revenue gains have outpaced expense growth, reflecting overall financial strengthening across INDEX schools.
Tuition Momentum Accelerates
Average tuition and fees increased 5.8% in 2024-25, following a 4.5% increase in 2023-24, marking two consecutive years of historically large tuition increases. This upward trend has helped sustain operating margins in the face of rising costs but also underscores the ongoing tension between financial sustainability and affordability.
Endowment Reliance Deepens
Average endowment less debt per student climbed 47% since 2017-18 and now exceeds $40,000 per student. Over the same period, the share of total operating revenue derived from endowment income has increased by 25%, reaching 7.4% in 2023-24. While this contribution strengthens annual budgets, it also exposes schools to potential short-term risk should market performance decline.
Benefits Costs Escalate
Benefits expense per student rose 5.0% in 2023-24 following a 5.7% increase in 2022-23, marking two consecutive years of the steepest growth in recent history. Rising health care costs continue to outpace inflation, exerting steady upward pressure on operating budgets and narrowing flexibility in other expense areas.
Staffing Levels Rise
Schools now employ an average of 228 FTEs per 1,000 students, up from 218 in 2019-20, an increase of roughly 10 FTEs per 1,000 students. The steady rise reflects ongoing expansion of school operations and programmatic expectations, contributing to long-term expense growth.