Colleges May Praise Themselves for Limiting Tuition Hikes, but Don’t Buy It
by Mark Sklarow, Executive Director, Independent Educational Consultants Association
It is that time of year, when colleges announce their tuition and fee schedule for the 2010-2011 school year. Throughout the country we have seen college administrators act so aggressively to pat themselves on the back that I suspect more than a few have had to go to the hospital with arm strain. After a year where tuition increases in some schools exceeded 10 percent—and where some colleges raised tuition mid-year, an almost unheard of decision heading into the current semester—many have been relieved to see increases limited to just 3, 4, or 5 percent.
College registrars have been touting increases, generally in the 3 to 4 percent range, as evidence that they understand the economic frustration of students and families and fears among many that larger increases would have devastating effect on students’ ability to remain enrolled.
Such comments leave me extremely frustrated and show how divorced from reality many colleges are.
I have tracked, for about 20 years, how college tuition has increased at roughly DOUBLE the rate of inflation. That means in those years that the consumer price index increased by 4 percent, tuition typically increased by 8 percent. When inflation was 5 percent, tuition grew by 10 percent. So where were we in 2009? We had essentially no inflation with the annual rate at -0.4 percent. So have colleges matched that lack of inflation by holding the line? No, the current 3 to 4 percent increases are dramatically higher than the inflation rate. Even as we look at the first few months of 2010, the Consumer Price Index is up about 2 percent, reflecting, yet again, college tuition rising at double the cost of other goods and services.
When one looks over time, it is easy to see how college tuition has gotten ridiculously out of hand: if the price of food has about doubled over the last 20 years, the price of going to college is up 400 percent or more. Given that wages have not come close to matching this increase, we can easily see the growing impossibility of affording college for those of modest means. This explains the growing trend of students graduating with loans beyond what any 22-year-old should face.
In the current climate we understand that other factors weigh heavily on colleges. States are essentially bankrupt, resulting in a freeze in college funding for the luckiest of state universities, and outright cuts to many. Yet colleges are also seeing the result of a generation of run-away costs and tuition hikes.
As we look to the future, families must stop seeing colleges as resorts: we all have seen parents who visit campuses and are enthralled by the lavish health clubs, dining halls, arts centers, and more. Colleges may need to look at the highly paid “professors” who conduct research but do not teach, among other efforts, to keep the lid on costs. Keeping college affordable is a mission that should dominate college administrators’ efforts today, and all of us need to watch this effort.
Related posts:
- National Poll Confirms Family Confusion Over College Finances
- We Must Do a Better Job Ensuring Colleges Understand WHAT Educational Consultants DO and How Many Kids We Work With
- State Universities & Out-of-State Yields
- Colleges Turn Out by the Hundreds to Connect with IECA Member Educational Consultants
- Note to Colleges: An Unethical Practice Domestically is No Less Wrong Internationally
Wow, Mark! Your comments are very intersting! Lynn Luckenbach
Mark, your comments about tuition increases far exceeding the rate of inflation further underscore a major problem with the recently passed student aid reform. The annual increase in Pell grants, which by the way does not start for another two years, was reduced from CPI + 1% to CPI flat in the final version of the bill. The maximum grant is expected to reach 5,900 by 2019-2020 which means that students with the greatest need will continue to lose ground with respect to college affordability.
Mark, Great post. Enough already with the back pats. Pulling apart the numbers by type of institution is even more alarming. According to our colleagues at the College Board, those attending public four year institutions just saw their tuition fees skyrocket 6.4% and those attending two year public colleges are seeing 7.4% spikes. Room and board on those campuses is, of course, also increasing. Every institution has issues with capital improvements, deferred maintenance, faculty and staff salaries, and student services. Now is the time for us to invest in education especially at the state and federal level. Students need training, skills, expertise – all of which are at the crux of their college and/or post high school educations – so that they can lead productive and satisfying lives. I’m looking forward to Toronto when we’ll have a chance to talk through solutions for our families and our country.
Thanks for this post! Using the price of food, as well as the CPI, makes it crystal clear.
Jane, I agree that the final bill on college loans was less than ideal… but it stopped the Pell Grant system from becoming insolvent and infused it with billions of additional dollars. The increases can be revisited and if federal deficits come down there is widespread agreement that additional funding to Pell Grants is desirable.