The Economic Value of WTAMU Main Report

the first 20 years of their working lifetime. The stream of these future interest
costs together with the stream of loan payments is included in the costs of
Column 5 of Table 3.2.
The steps leading up to the calculation of student costs appear in Table 3.1.
Direct outlays amount to $40.2 million, the sum of tuition and fees ($56.2 million)
and books and supplies ($7.6 million), less federal loans received ($23.1
million) and $452.4 thousand in direct outlays of personal enrichment students
(those students are excluded from the cost calculations). Opportunity costs
for working and non-working students amount to $106.6 million, excluding
$11.7 million in offsetting residual aid that is paid directly to students. 33 Finally,
we have the present value of future student loan costs, amounting to $22.8
million between principal and interest. Summing direct outlays, opportunity
costs, and future student loan costs together yields a total of $169.6 million in
present value student costs.
TABLE 3.1: PRESENT VALUE OF STUDENT COSTS, FY 2017-18 (THOUSANDS)
Direct outlays in FY 2017-18
Tuition and fees $56,227
Less federal loans received -$23,086
Books and supplies $7,552
Less direct outlays of personal enrichment students -$452
Total direct outlays $40,241
Opportunity costs in FY 2017-18
Earnings foregone by non-working students $75,826
Earnings foregone by working students $34,875
Value of leisure time foregone by working students $7,544
Less residual aid -$11,693
Total opportunity costs $106,551
Future student loan costs (present value)
Student loan principal $14,147
Student loan interest $8,653
Total present value student loan costs $22,800
Total present value student costs $169,592
Source: Based on data provided by WTAMU and outputs of the Emsi impact model.
33 Residual aid is the remaining portion of scholarship or grant aid distributed directly to a student after the university
applies tuition and fees.
Chapter 3: Investment Analysis 48