<p>The ever-feisty and outspoken William G. Durden, president of Dickinson College, argues that the valuable hallmarks of a distinctively American higher education are a global market asset that would be lost in the “brutal confrontation between cost and accountability”: </p>
<p>This statement is poorly worded and difficult to understand. I think he’s trying to say “If you make us accountable for how we spend our tuition increases, then you will damage our pursuit of excellence in higher education.” But, then he says “Demand transparency because the public needs to know that tuition dollars are a sound investment.” What the…?</p>
<p>Durden is being unrealistic -the fact is, that college has become unaffordable for many famililies, and there is a paradigm shift going on. With problems in the financial markets, and with home equity decreasing because of decreasing home values, people simply don’t have the $ 160k for a 4 yr degree - or are nervous about the opportunity cost of investing so much $$ for such a risky venture. After $ 160k - I don’t want my child underemployed and living in my basement !!! Or facing mandatory grad school, because that’s the real key to entering the job market.</p>
<p>I feel that part of the reason the schools have been able to get away with ever increasing tuition and fees is due to the “wealth effect” from inflated home values. Now that the housing ATM is over, where’s the money going to come from ? I know that when I filled out the CSS/Profile they ask for the amount of home equity – but the truth is, in our market I am not sure if I even have any equity. And with the lack of available credit in the mortgage industry right now, it’s hard to even qualify for an equity line. And I like the way they assume that current cash flow going to a 401k is potentially available for college costs - I’ll have kids in college for the next 10 years - a decade of retirement savings cannot be diverted to college tuition without serious consequences.</p>
<p>The colleges & universities have increased prices to the point where the public is going to push back. This is the same game the public school union in NJ plays - any talk of decreasing costs, and they automatically start telling you how the quality (& kids) will suffer. There’s no common sense dialogue where the 2 sides of the equation sit down together to discuss options for containing costs. (In NJ schools are funded through property taxes - I pay $ 11k per year for a very modest home)</p>
<p>Of course, it is easier to jump on the transaparency & accountability bandwagon after the fact - now that the whole college loan business is being investigated. What about the ever-increasing marketing programs, designed to generate extra applications and a lower acceptance rate ? What about credit card marketing to students on campus - the schools get kickbacks for that. And also there are some complaints now about price gouging in the international study programs also…Somewhere along the line the institutions of higher learning became a big business - so they can’t expect the parents & students not to, correspondingly, transition to a new status as a savvy consumer.</p>
<p>NEM2, I agree with you (nice screen name, BTW ;))! I also agee with all of your comments about the NJ public schools. </p>
<p>Until the well runs dry, I don’t really think the schools worry. The prices just keep on rising. I don’t see the well drying up soon. There are many wealthy families out there who can afford this. The schools have no problem taking your money if you want to finance up to the full cost with a plus loan every year. You just need to qualify for the loan. I almost fell over when I read that info from one out of state public. They offered nothing in the way of financial aid to my son. They wrote that we can apply for a PLUS loan for 28,000. That was 2 years ago. He did not go there, BTW. Have you looked at the instate costs for our public Us? Cost of attendance at Rutgers is now 20k/year (instate).</p>