Colleges are losing pricing power
After years of relentless tuition hikes, many colleges and universities are facing a backlash and more students and parents are looking at value. They don’t want to be stuck with outrageous student loans, and now many private colleges are offering record financial aid to keep classrooms full.
Posted in: Your Education
Tags: affording college, college, college affordability, college costs, college education, college tuition backlash, college tuition breaks, college tuition revolt, colleges losing pricing power, cost of college education, crippling college costs, dramatic rise in tuition, going to college, is college worth investment, picking a college, reducing college costs, soaring costs of college, soaring tuition costs, tuition costs, value of college
College presidents rake in the big bucks
Is the college game rigged against you? No, we’re not talking about fixing college football games. We’re talking about the problem of college costs and runaway student debt. With that in mind, this article about salaries and expenses for college presidents will probably get your blood boiling.
E. Gordon Gee makes millions as president of Ohio State University, but a Dayton Daily News investigation found the university spends almost as much for Gee to travel the globe, throw parties, wine and dine donors, woo prospective faculty, hang out with students and staff and maintain a 9,600-square-foot mansion on 1.3 acres.
Since returning to Columbus as the university’s president in October 2007, the 68-year-old Gee has pulled in $8.6 million in salary and compensation, making him the highest paid CEO of a public university in the country.
But his expenses — hidden among hard-to-get records that the university took nearly a year to release — tally nearly as much: $7.7 million.
Gee’s spending is kept out of the public eye because it can be tallied only by examining multiple reports, including the quarterly discretionary expense reports delivered to the trustees and not easily obtainable by others. The Daily News first requested records documenting Gee’s work day, housing, American Express statements, travel expenses, discretionary spending reports and other data in September 2011. The university did not fully respond to the request until August 2012.
Those records show Gee stays in luxury hotels, dines at country clubs and swank restaurants, throws lavish parties, flies on private jets and hands out thousands of gifts — all at public expense.
The Daily News investigation found the university spent more than $895,000 for gatherings at the Pizzuti House, the president’s mansion, between April 2008 and June 2011.
Yes, Gee raises a ton of money, bet when if ever will tuition-paying students see any of the benefits beyond new construction on campus? Things have to change.
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Tags: administration costs at colleges, affording college, college affordability, college costs, college game rigged?, cost of college education, crippling college costs, dramatic rise in tuition, E. Gordon Gee, E. Gordon Gee expenses, E. Gordon Gee salary, inefficiencies at colleges, is college worth investment, Ohio Sate, picking a college, reducing college costs, runaway student debt, soaring costs of college, soaring tuition costs, tuition costs
Evaluating online degrees
We’ve addressed issues surrounding for-profit college scams in the past. There’s also the issue of rising college costs in general, and also the opportunities for self-education for free.
Here’s an excellent article that gives great advice on how to evaluate online courses and degrees. It’s important to use objective resources and guides.
You don’t mention whether you’ve already tried Googling, say, “online degree programs,” but, if so, you’ve no doubt been bombarded with advertising from for-profit schools. The University of Phoenix alone spends over $200 million a year on television and Internet pitches, according to an estimate from Madison Avenue trade paper Ad Age. Nothing wrong with advertising, of course, but in some respects it does make the process of choosing the right online school more difficult.
Here’s why: more than 7,000 U.S. colleges and universities now offer long-distance degree programs — and about 85% of those are traditional brick-and-mortar schools that have expanded into cyberspace over the past few years. Yet traditional colleges don’t have the marketing budgets that the huge for-profit schools have. So unless you actively seek out brick-and-mortar schools’ online offerings, you may never know they exist.
“Prospective students should be wary of Internet ‘guides’ to online education that get paid to promote for-profit schools,” says Vicky Phillips. “It’s called pay-per-lead advertising, and it means the ‘guide’ gets X dollars for each person it steers to a for-profit university.” Traditional colleges don’t have such deep pockets, so thousands of them are unlikely to turn up in such directories at all.
“Not only that, but the for-profit schools have tens of thousands of students, while the online bachelor’s-in-business program at a traditional university can only accept, say, 30 at a time,” she adds. “So even if traditional colleges could afford to pay for online leads, it wouldn’t make sense for them to do so. They’re operating on an entirely different scale.”
Phillips has been researching and comparing online degree programs for 20 years, which is about as long as they’ve existed. She runs a consumer-information web site called GetEducated.com that you might want to check out. The site includes a comparison tool that lets you evaluate and rank schools using 12 different filters. These include type of specialization in your major (business with a minor in finance, for instance); non-profit versus for-profit; secular versus religious (many Christian colleges now offer long-distance learning); and whether the school’s programs are 100% online or “hybrids,” meaning you’ll have to show up in person several times per semester.
There are tons of great options for online education, both free and those that require payments. You just have to do your research and find the solution that’s best for you. Just be careful of any program where you will end up with loads of college debt.
Posted in: Your Career, Your Education
Tags: affording college, college affordability, college costs, cost of college education, crippling college costs, dramatic rise in tuition, educate yourself, emergence of self-education, evaluate online courses, evaluate online degrees, for-profit college costs, for-profit college regulations, for-profit college scams, for-profit colleges, free college, free college courses, free college education, free learning tools, free online classes, free online lectures, GetEducated.com, is college worth investment, long-distance degree programs, Massive Open Online Courses, MOOC revolution, MOOCs, online degree programs, online learning, online tools, picking a college, reducing college costs, revolution in college education, revolution in higher learning, self-education, self-education revolution, soaring costs of college, soaring tuition costs, student debt from for-profit colleges, tuition costs, University of Phoenix, virtual classroom, virtual learning
Movement for $10,000 college degree
The value of a college education has been a hot topic, along with the issue of the college loan crisis. With that backdrop, we’re starting to see some momentum behind the movement for what’s being called the $10,000 college degree.
With the cost of going to college already more than $30,000 a year at many California campuses, is it possible to earn a bachelor’s degree for just $10,000 – total?
Assemblyman Dan Logue hopes so.
Borrowing an idea being promoted by Republican governors in Texas and Florida, the Republican Assemblyman from Linda has introduced a bill that would create a pilot program in California for what he’s billing as a $10,000 bachelor’s degree. The degree would be available to students majoring in science, technology, engineering or math disciplines.
Assembly Bill 51 calls for closer coordination between high schools, community colleges and California State University campuses and targets three regions for the pilot: Chico, Long Beach and Turlock. Participating students would earn some college credit in high school through Advanced Placement classes and greater access to community college courses. The bill calls for participating community college students to go to school full-time. CSU campuses, moreover, would be required to freeze tuition for those in the program.
Tuition at CSU right now is $5,472 a year. Books and campus fees cost another roughly $2,000 annually. A statement from Logue said his proposed $10,000 degree would include textbooks. It does not cover living expenses such as room and board.
You’ll note that it’s governors in Texas and Florida, both Republicans, who have started this movement, and it is being embraced by prominent conservatives. I would suspect that Democrats would happily go along, so this could be a significant bi-partisan movement.
Posted in: Your Education
Tags: $10000 college degree, affording college, cheap college movement, college, college affordability, college costs, cost of college education, crippling college costs, dramatic rise in tuition, going to college, is college worth investment, picking a college, reducing college costs, soaring costs of college, soaring tuition costs, tuition, tuition costs, value of college
Are administration costs driving up college tuition?
Free image courtesy of FreeDigitalPhotos.net
The costs of a college education are getting out of hand. Even state schools are seeing a dramatic rise in tuition, and way too many students are leaving college with a mountain of debt. Something has to give.
Meanwhile, articles like this one are pointing out a potential problem – the explosion of administrative costs at American universities.
J. Paul Robinson, chairman of the Purdue University faculty senate, walks the halls of a 10-story tower, pointing out a row of offices for administrators. “I have no idea what these people do,” says the biomedical engineering professor. Purdue has a $313,000-a-year acting provost and six vice and associate vice provosts, including a $198,000-a-year chief diversity officer. Among its 16 deans and 11 vice presidents are a $253,000 marketing officer and a $433,000 business school chief. The average full professor at the public university in West Lafayette, Ind., makes $125,000.
The number of Purdue administrators has jumped 54 percent in the past decade—almost eight times the growth rate of tenured and tenure-track faculty. “We’re here to deliver a high-quality education at as low a price as possible,” says Robinson. “Why is it that we can’t find any money for more faculty, but there seems to be an almost unlimited budget for administrators?”
Read the entire article and it will probably piss you off. The dean-to-professor ratio is getting out of hand, and hopefully people will start demanding changes.
Posted in: Your Education
Tags: administration costs at colleges, affording college, college admin costs, college affordability, college costs, cost of college education, costs driving up college tuition, crippling college costs, dean-to-professor ratio, dramatic rise in tuition, inefficiencies at colleges, is college worth investment, picking a college, professor salaries, Purdue University, reducing college costs, salaries for college deans, soaring costs of college, soaring tuition costs, tuition costs
Dealing with rising college costs
The issue of rising college costs is a hot topic these days, as young students and families grapple with the issue of how to pay for a college education. Too many young people are saddled with crippling college debt, and as this has gained more attention, it has certainly focused the minds of many Americans as they weigh their options.
Universities are reacting as well, and some of the trends are very promising. Davidson College has created an innovative no-loan policy.
“When I got my acceptance letter and my tuition bill, it told us that everything was mostly paid for,” she recalls. “I had heard something about Davidson’s no-loan policy, but it didn’t make sense because it sounded too good to be true. My mom was like, ‘This can’t be right. We need to go talk to them.’ ” The admission counselor explained that, because of the Davidson Trust, the school was able to cover 100 percent of demonstrated need without loans. Her mother cried. “At the time, I felt kind of embarrassed. When we walked back to my car, she said, ‘I’m so happy. I feel like I should make [the counselor] something.’ ”
Other schools like Harvard are also making it much easier for students to get grants instead of loans in order to lower the student debt burden. Families and students need to do their research, and you have to factor in costs and debt into your decision. Otherwise students will have this debt hanging over them for much of their careers.
You can read more about the student debt crisis and the value of a college education versus the costs here, here and here.
Read all of these materials, and you’ll be much more prepared for the decisions you’ll have to make.
Posted in: Your Career, Your Education
Tags: affording college, career vs education, choosing a major, college, college affordability, college costs, college education, college experience, college major, cost of college education, crippling college costs, Davidson College, Davidson College no loan policy, debt free degree, dramatic rise in tuition, going to college, is college worth investment, leveraging college degree, maximizing college degree, no loan colleges, picking a college, reducing college costs, soaring costs of college, soaring tuition costs, tuition costs, value of college, value of college major
The crippling cost of college
One of the themes we keep emphasizing has to do with the crippling costs of a college education today in America. Sure, college campuses are much nicer with all the new buildings and new technologies, but they are failing in their basic mission if students leave there with massive student debt that will hang over them for the rest of their lives.
More publications are doing good work discussing these problems. In Newsweek, Megan McArdle asks whether college is a lousy investment.
Why are we spending so much money on college?
And why are we so unhappy about it? We all seem to agree that a college education is wonderful, and yet strangely we worry when we see families investing so much in this supposedly essential good. Maybe it’s time to ask a question that seems almost sacrilegious: is all this investment in college education really worth it?
The answer, I fear, is that it’s not. For an increasing number of kids, the extra time and money spent pursuing a college diploma will leave them worse off than they were before they set foot on campus.
Given the costs, it’s hard to argue with her on this point. She discusses how college was critical for many families in building a better life for the next generation. But sitting on an English degree with $150,000 of debt seems like a pretty bad deal.
That said, we can’t overreact to the current economic conditions. When the economy improves, more of these kids will get jobs with their degrees.
Yet something has to give, and it was very encouraging to hear President Obama challenge colleges to slow down tuition inflation.
Also, the future of free college courses looms on the horizon. Universities would be wise to start figuring out how to lower costs, or they might really have a problem in the future.
Posted in: Your Career, Your Compensation, Your Education
Tags: affording college, college, college affordability, college costs, college education, college lousy investment, cost of college education, crippling college costs, dramatic rise in tuition, educate yourself, emergence of self-education, free college, free college courses, free college education, free learning tools, free online classes, free online lectures, going to college, is college worth investment, Megan McArdle, Newsweek, online learning, online tools, picking a college, reducing college costs, revolution in college education, revolution in higher learning, self-education, soaring costs of college, soaring tuition costs, student loan crisis, student loan reform, student loans, tuition costs, value of college, virtual classroom, virtual learning
The virtual classroom of the future is here now
The idea of college kids congregating in libraries on college campuses will likely never go away, but a revolution in higher learning is underway that can shake up the university system in the United States and around the world.
The trend of putting college courses online for free is exploding, and the idea of a college education may never be the same. That’s probably a good thing, as the cost of a college education has been spiraling out of control. We believe that the emergence of self-education through free online tools will be one of the great trends of the 21st century.
Steve Klinsey is the founder and CEO of New Mountain Capital and has been very active in education reform for years. He has published a very interesting commentary in Baron’s discussing this topic.
The American Dream is increasingly blocked by steadily rising college costs, and America’s student debt stands at more than $1 trillion. Fortunately, the combination of readily available technology and a simple regulatory change could create a low-cost or even a no-cost alternative path toward a college degree. The edX program recently announced by MIT and Harvard points the way toward a massively open online course movement.
EdX is designed to make MIT and Harvard college courses widely available online, building on the MITx program that already offers MIT courses free of charge online to any student anywhere. EdX will support students’ learning and grade their work, and a certificate from the program will be granted for successful course completion. EdX is also offering to give its online-course-delivery software to other educational institutions that want to broadly distribute their courses.
Last fall, Stanford offered an introductory Artificial Intelligence course for free, online. It reported that 160,000 students, from high schoolers to retirees, enrolled from 175 countries, and 22,000 students completed the rigorous course.
Princeton, the University of Michigan, the University of Pennsylvania, and others are pursuing similar paths. The Open University system in the United Kingdom and Western Governors University in the U.S. have been pioneering this philosophy as well.
Digital technology can revolutionize the cost structure of education, just as it has for other forms of information. However, regulation needs to change to enable the advance, particularly in the area of accreditation.
He goes on to discuss ways that some sort of certificate of completion can be given to people who complete these courses online, and how the government can incentivize universities to come up with a standardized system to handle these certificates so that prospective employers and other universities can count on them.
This is yet another example of the tremendous power the the internet and social media. The exponential effect this can have on global learning is simply staggering and also very exciting.
Hopefully, the days of ridiculously priced college educations will be coming to an end.
Posted in: Your Education
Tags: affording college, Baron's, college affordability, college costs, college education, cost of college education, dramatic rise in tuition, educate yourself, EdX, edX program, emergence of self-education, free learning tools, free online classes, free online lectures, online learning, online tools, Open University system, picking a college, reducing college costs, revolution in higher learning, self-education, soaring costs of college, soaring tuition costs, Steve Klinsey, tuition costs, virtual classroom, virtual learning
Start-ups offer free college education
The cost of college tuition is skyrocketing, so it’s not surprising that some entrepreneurs are trying to fill the void.
Technology start-ups are cracking into the higher education market and there pitch is an enticing one: A college education for anyone at almost no cost.
Sound to good to be true? The founders of tech start-ups behind this revolutionary idea say they have already had success with their models, but they say there needs to be more momentum if their idea is to succeed.
“The 99% should be protesting college campuses,” says Sebastian Thrun, a Stanford University artificial intelligence professor, who recently co-founded Udacity, a technology start-up dedicated to providing higher education at a very low cost.
Two companies doing this are Udemy and Udacity. The new trend is self-education with all of the tools out there, including free lectures on iTunes and Khan Academy.
Smart employers will start to figure this out as well, and I suspect in the future we’ll see job applicants will put a Self-Education section on their resumes. It shows initiative and prospective employers can always quiz applicants on what they learned for verification.
Posted in: Your Education
Tags: affording college, college, college affordability, college costs, cost of college education, dramatic rise in tuition, educate yourself, entrepreneurs, free learning tools, free online classes, free online lectures, going to college, Khan Academy, online learning, online tools, picking a college, reducing college costs, resumes, Sebastian Thrun, self-education, soaring costs of college, soaring tuition costs, tuition costs, Udacity, Udemy