National Review
George Leef

Progressives complain that going to college costs too much, and then almost always say that the solution is in some new governmental action. (Of course, more governmental action is their solution to every problem, real or imagined.)

Recently, readers of The Atlantic were treated to such an article by Amanda Ripley. She sought to explain why the cost of college has been rising so quickly for the last several decades. She managed to completely miss the elephant in the room, namely federal higher-ed subsidies.

In today’s Martin Center commentary, economics professor Richard Vedder corrects her errors.

He writes:

She fails to even fleetingly mention one thing unique to American higher education that has been an enormous factor in driving up costs: the federal student financial assistance programs. The money from those programs has provided universities an opportunity to raise fees aggressively, using the proceeds to fund a very costly and unproductive academic arms race, including ultra-posh buildings, climbing walls and lazy rivers, and college sports programs that are out of control both financially and morally.

That omission is not surprising. Progressives can never bring themselves to admit that any of their “compassionate” programs like minimum-wage laws, rent control, or educational subsidies have adverse effects.

Vedder also points out (based on his long experience in higher ed) that most college leaders have no interest in cost control. They would much rather compete on prestige and luxurious amenities than on price.

His conclusion “sticks the landing,” as they’d say in gymnastics: “Government has been the problem, not the solution. In the era before big government came to dominate higher education, fees grew less rapidly than people’s income, enrollments rose, and America became acknowledged as the world’s leading center for learning at the highest levels. We can return to high quality, affordable higher education, but only if we’re willing to end federal subsidies. It’s time for liberals to understand that.”

Link

The unlimited availability of student loans to earn a degree in left handed puppetry or some other nonsense has been the reason clearly. Along with the relatively recent belief that everyone is entitled to go to college despite many college freshman needing remedial math and English classes just to get up to the minimal level.

I have always said that as soon as colleges are required to start lending their own funds, the cost will come down. I say Immediately stop government subsidized loans.

I think this is also one of the reasons health care is so expensive. All that insurance, and to a lesser extent, government health care.

It is a basic principal of economics that the market can't work if the user of a good is not paying for it.

Yup, same as the housing market, banks ever would made those loans if they had to keep them.

Get colleges to co-sign Federal student loans.

Colleges really have no accountability for how they spend taxpayer money. If they had to shoulder the risks of the loans, the following would happen:

• Many colleges would have to shutdown
  
• There would be higher admissions' standards - better quality students
  
• Non-credible academic programs would either get reduced or eliminated (ie. gender studies)
  
• Job placement would be a higher priority
  
• Bureaucracy would be reduced & budgets tightened
  
• Traditional model of a 4-yr undergrad degree may have to be switched to a 3-yr degree in which the "4th" year wouldn't be needed because the students had already taken enough credits while in high school to cover what would have been their "freshman" year.
  
• More scrutiny in accreditation of graduate programs (too many worthless graduate degrees)
  

Two main reasons: the ready availability of government loans, and the exploding size of college administrations. Most people know about the first, few about the second, unless you are in higher ed. The increase from, say, 1950 to now is nothing short of stunning. And, when you factor the cost involved, shocking.

Why Does College Cost So Much? Easy. For the same reason so many other things cost so much... Government meddling.

It’s almost like everything the government meddles with gets expensive as hell....

Education is expensive because stupidity is free.

quote:

His conclusion “sticks the landing,” as they’d say in gymnastics: “Government has been the problem, not the solution.

Bingo.

The schools compete... but not on price.
They have to look like the best country club in town in order to attract students. No need for frugality when the government makes borrowing so easy.
Of course many students won't be able to re-pay the loans and become debt slaves... but that doesn't really affect the schools, does it?

Subsidize anything (scholarships, student loans, grants...) and the price goes up.

Remove any competitive pressures and accountability (tenure professors) and there is no barrier to cost increases.

What salary do our professors deserve?
Well, they are some of the smartest and hardest-working people on Earth, right? We can't "undercompensate them" or it would be "unfair".

Recently, the Wichita Business Journal published a list of the highest paid at KS Colleges. I was astounded at the level of the salaries of some of these Professors.

WBJ Link

Student loans are definitely the main factor.

The fact that many of us parents want the best life humanly possible for their children to the point of near insanity is also a factor......and the institutions of higher learning know it.

quote:

Originally posted by Sailor1911:
Recently, the Wichita Business Journal published a list of the highest paid at KS Colleges. I was astounded at the level of the salaries of some of these Professors.

And the truth is that college professorships afford a level of freedom, social respect, and credibility that are a considerable "compensation" on their own. Academics would continue to want to be and work as Professors if the salary was 1/3 of the current levels.

The end user (student) is insulated from the cost.
Parents, government, banks, scholarships mostly pay the tab.
A student working 2 jobs to go to college has different values about an education and usually spends differently.

quote:

What salary do our professors deserve?

Adjusted for inflation, college professors' salaries are just about where they were in 1950, as are professor - student ratios.

Administrators and their staffs, however, have increased exponentially over that time, and they all make big bucks. Everybody knows about the government loans. Trust me on this, the staggering proliferation of administrators is a huge factor.

quote:

Administrators and their staffs, however, have increased exponentially over that time, and they all make big bucks. Everybody knows about the government loans. Trust me on this, the staggering proliferation of administrators is a huge factor.

The salary of University Presidents is astronomical. Those outside the system have no idea. For example:

E. Gordon Gee to make $775,000 plus benefits as West Virginia University president.

The total package is 1.6 million. He is not even a winning football coach! LOL

One reason could be subjects not needed for getting a job. Back when the Occupy Wall Street was going on two guys went to a park in NYC were some set up a tent city protesting. They ask a young lady holding a sign about expensive College cost what it cost her and what were her studies. She said her tuition was so far over 250,000.00,they ask her major and she proudly said "Minority Womens Studies". They asked her how she would use that to get a job and her face went blank.

funny thing is In-State tuition in most places is not astronomical

it's when you add in

-expensive room / board options
-out-of-state
-private school

that's when things get crazy

choose accordingly

----------------------------------------------

quote:

Originally posted by lkdr1989:
Get colleges to co-sign Federal student loans.

Colleges really have no accountability for how they spend taxpayer money. If they had to shoulder the risks of the loans, the following would happen:

• Many colleges would have to shutdown
  
• There would be higher admissions' standards - better quality students
  
• Non-credible academic programs would either get reduced or eliminated (ie. gender studies)
  
• Job placement would be a higher priority
  
• Bureaucracy would be reduced & budgets tightened
  
• Traditional model of a 4-yr undergrad degree may have to be switched to a 3-yr degree in which the "4th" year wouldn't be needed because the students had already taken enough credits while in high school to cover what would have been their "freshman" year.
  
• More scrutiny in accreditation of graduate programs (too many worthless graduate degrees)
  

^^^THIS^^^