PER STUDENT COST CALCULATION AND AUTOMATIZATION IN HIGHER EDUCATION

Abstract

This article examines the methodology and automation of calculating the full economic cost per student in higher education, distinguishing it from tuition fees. It emphasizes that tuition fees represent the price students are charged, while the per-unit cost reflects the actual expenses incurred by the university to educate a student for a specific period, typically one academic year. The problem addressed is accurately determining these costs, considering the allocation of direct and indirect expenses, student mobility, the Student-to-Academic-Staff Ratio (SASR), the complexity of overhead allocation, joint teaching and research responsibilities, and data availability. The methodology proposed involves identifying direct costs such as faculty salaries, teaching materials, laboratories, stipends, and other program-specific expenses, as well as allocating indirect costs including administrative salaries, facilities, utilities, IT infrastructure, library resources, student services, and depreciation. Calculations are based on Full-Time Equivalent (FTE) students, adjusted for mobility such as entrants, leavers, and temporary leaves. The algorithm provided allows automated computation of per-student costs by aggregating direct and indirect costs, adjusting for student numbers, and applying appropriate allocation bases. Special attention is given to SASR, particularly for engineering universities where hands-on, resource-intensive education requires small group supervision and specialized instruction. Benchmarking of SASR helps assess educational quality, program accreditation compliance, and financial sustainability. The study demonstrates that precise calculation and automation of per-unit costs support strategic decision-making in resource allocation, staffing, program planning, and tuition management, ensuring transparency and efficiency in higher education institutions.