Impact of Private and Independent Colleges in Pennsylvania on Their Respective Communities Detailed in Research Study
Pennsylvania's independent, private colleges and universities contributed approximately $29 billion to the state's economy in 2024. Including their affiliated teaching hospitals, the total economic impact rises to about $65.6 billion. These institutions generate $1.5 billion in state and local taxes, support roughly 195,120 jobs across Pennsylvania, and educate about 279,000 students, conferring 77,000 degrees annually.
The student population spends around $5.3 billion annually in-state, further driving economic activity. These colleges and universities represent about 7% of Pennsylvania’s entire economy when teaching hospitals are included. They employ more than 200,000 people statewide, making higher education one of the top employment sectors in Pennsylvania.
For every dollar spent by these schools, approximately $35 in economic activity is generated; every state dollar invested returns about $158 to the economy through these institutions. The schools serve a broad socioeconomic range of students, with 47% coming from lower-income backgrounds, often receiving significant financial aid.
Examples like Grove City College illustrate the regional economic impact, contributing over $176 million locally, sustaining more than 800 jobs, and generating about $13.6 million in tax revenues regionally. Neumann University, with about 2,400 students, is typical of most association schools, offering programs in nursing, allied health, technology (including cybersecurity).
The independent college universities in Pennsylvania make up a significant portion of the state's graduates and students. They conferred degrees to 46% of the state's Pell Grant recipients, 47% of Pennsylvania Higher Education Assistance Agency state grant recipients, 52% of working age students seeking degrees, and 55% of all minority students.
The report by Fitch Ratings, Inc., emphasizes the benefits that collaboration across institutions, legislators, and employers can yield. The Pennsylvania Chamber of Business and Industry identifies higher education as the fifth-largest industry in the state. The independent college universities in Pennsylvania attract citizens and talent from not only the state but also from across the U.S. and the world.
According to a 2019 report by the Federal Reserve Bank of Philadelphia, the Philadelphia metro area has about 500,000 jobs related to the education and medical sectors. The economic impact to the state for fiscal year 2024, including teaching hospitals, increases to $65.6 billion. Neumann University, a member of the association, contributes approximately $163 million to its local community, Aston, in Delaware County.
The report contradicts the presumption that only state-funded public colleges and universities contribute to state economies. As a nonprofit organization, the website relies on financial support from readers for fact-based, in-depth journalism and information.
[1] Pennsylvania Independent Colleges and Universities Association, (2024), Economic Impact Report. [2] Fitch Ratings, Inc., (2024), Report on Pennsylvania's Independent Colleges and Universities. [3] Pennsylvania Independent Colleges and Universities Association, (2021), Fact Sheet. [4] Pennsylvania Department of Education, (2022), Report on Higher Education Contributions to the State Economy. [5] Grove City College, (2021), Economic Impact Study.
The Pennsylvania independent colleges and universities contribute to various sectors, including finance, education-and-self-development, and general-news. For instance, they generate significant economic activity, with every dollar spent by these schools yielding about $35 in economic activity. Additionally, these institutions serve a diverse student population, with 47% coming from lower-income backgrounds and receiving financial aid.
