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Worried about rising costs of a college education?

if you want to know why the problem is not going to be solved anytime soon, just remember two words: Arms Race.

State Senator Luke Kenley, the powerful chairman of the Senate Budget Committee, launched a broadside against both Indiana and Purdue university for raising their tuition rates (I.U., 4.8%, Purdue 5.0%) in the midst of hard economic times — when other prices are going down and parents are having a tough time making ends meet. He can’t make them rescind the raises, but he told them not to bring any of their big ticket building projects to his committee for approval.

He got their attention. They offered some cutbacks and I.U. announced a new grant program that will save in-state students between $200 and $300 a year in tuition. Since total charges at I.U. will jump from about $19,300 to $20,130 — an $834 increase — parents might answer, “That’s nice, but don’t do us any more favors.”

Purdue is a full partner in this trend. During the last ten years, it’s total cost per year has risen 81% and tuition alone is up 132%.

Why do colleges keep raising their costs at a rate way above the rise of inflation? Well, one reason is that state support, while continuing to rise, has become a smaller percentage of the total. But the basic, unquenchable thirst underneath all of this is the two words I mentioned at the first: Arms Race. I began to realize this at least a decade ago when I asked a college president why his school didn’t set a good example and hold the line on tuition costs. “We can’t,” he answered. “Parents judge the quality of our college by the tuition cost. If we lower it below the level of our comparable institutions, they won’t think we’re as good.” Isn’t that amazing?

The same force is still working today, especially among national research universities. If they don’t bring in as much or more money than their “competitive” rivals, they will have less to provide amenities students desire and winning coaches demand. If they don’t have enough to offer some hot shot research professor a pot of gold, he’ll go to a university that will. And in the process, they’ll not only lose the professor but the research grants that often follow him and eventually the reputation of being a “leading research university.” That’s it — an Arms Race. And, so far, nobody knows how to stop it.

–Vic Jose

Vic Jose :: Sep.19.2009 :: Uncategorized ::

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