Showing posts with label student debt. Show all posts
Showing posts with label student debt. Show all posts

Friday, February 21, 2014

College Administrative Bloat & Soaring Tuitions

Many young grads are shackled with exorbitant student debt today, and a lot of that debt paid administrators rather than instructors.

"Administrative bloat at American colleges and universities is out of hand, and it's probably the biggest cause of the skyrocketing tuitions that afflict students and parents today," writes law professor Glenn Harlan Reynolds @ USAToday.
Everyone knows that tuitions have skyrocketed, though many may not appreciate the full extent of the problem. As University of Michigan economics and finance professor Mark Perry has calculated, college tuition increased from 1978 to 2011 at an annual rate of 7.45%. That far outpaced health-care costs, which increased by 5.8%, and housing, which, notwithstanding the bubble, increased at 4.3%. Family incomes, on the other hand, barely kept up with the Consumer Price Index, which grew at an annual rate of 3.8%.
In another article on the same subject, Benjamin Ginsberg asks "can we curtail administrative bloat on campus?" and argues that "legions of administrators" are wasting time and taking money from instruction.
[Richard] Vedder, one of America's most distinguished educational economists, shows that in 2010-11, less than 30 percent of the $449 billion spent by American colleges and universities was spent on actual instruction. Indeed, for every $1 spent on instruction, $1.82 was spent on non-instructional matters including "institutional support," i.e. the care and feeding of deanlets. [emphasis added]
In yet another article, Walter Russell Mead describes the administrative glut at public and private colleges over the past 25 years this way:
Overall, the industry has added an average of 87 administrative positions per day, a rate has scarcely slowed since the economic downturn, despite tuition increases. Even more surprising, academic institutions have added more administrative employees despite part-time faculty taking on more teaching duties than full-time professors. [emphasis added]

Monday, May 7, 2012

Could Traditional Universities Become Extinct?

"Have the tools for [traditional universities'] demise been put in place – the Internet, personal computers, iPads and other tablet PCs, videoconferencing  apps, online publishing and online libraries of very affordable and in many cases, free content?" asks Brian Watt at ricochet.com.
What are parents and students (and in some cases taxpayers) paying for today beyond the acquisition of a diploma? Administrative overhead? Athletic programs? Housing? Maintenance of buildings? Gardeners? Security? Contraception? Liability insurance? Legal counsel? Bail?
The "socializing aspects of university life may disappear," writes Watt, along with "the more radical hybrid of social/anti-social activities – like protests and riots either motivated by winning or losing a sports title or vandalizing school property because capitalism is of course, evil and unfair..."
But consider also that the easy availability of college coursework taught by the best professors in the world to those living in less affluent parts of the world who might never haven been able to afford to attend or be qualified for a traditional university may eventually result in another renaissance, enlightenment or technological revolution giving them the opportunity to learn and then create or do amazing things.
It's an interesting thought:  a first-class education without a crushing student debt burden.

Friday, April 27, 2012

Chart: Median Earnings by Major and Subject Area

The Chronicle of Higher Education last year produced a highly informative chart showing the economic value, in terms of median annual salary, of a bachelor's degree by major and subject area. The chart covers median wages for more than 100 occupations spanning 15 majors and is a useful tool for anyone weighing how much student loan debt to accumulate.

It also raises a couple of interesting questions. Why do colleges charge the same general tuition rates for a petroleum engineer major, who can expect to earn an annual median salary of $120K, as a counseling-psychology major, whose annual median salary is only $29K?  Shouldn't tuition rates be more directly correlated to a student's return on investment, i.e., cost aligned to benefit of degrees?