The Higher Ed Bubble is Leaking

A growing number of liberal-arts colleges are supplementing their traditional glossy brochures touting ivy-covered libraries and great-books seminars with more pecuniary pitches: Buy seven semesters, get one free. Apply today, get $2,500 cash back. Free classes after four years.

The schools are adjusting their marketing to attract students at a time when families are struggling to foot the bill for college—and increasingly concerned about the potential payoff. Some of the most aggressive offers come from the most financially vulnerable schools: midtier, private institutions that are heavily dependent on tuition and sit in regions with shrinking pools of college-bound high-school seniors.
. . .
The pressure on liberal-arts schools is coming from several directions. Nationwide, the number of graduating high-school seniors this year is expected to decline to 3.32 million from a projected all-time high of 3.41 million during the 2010-11 school year, according to the Western Interstate Commission for Higher Education. And fewer college-bound seniors are choosing private four-year schools: Between 2006 and 2011, the percentage of students at those schools dropped to 20% from 22%, according to the College Board Advocacy and Policy Center.

For students headed to college, tuition is a bigger issue than ever. The average cost of public and private schools jumped 92% between 2001 and 2011, compared with a 27% rise in the consumer-price index. Last year the average amount that students at public colleges paid in tuition, after state and institutional grants and scholarships, climbed 8.3%, the biggest jump on record, according to the State Higher Education Executive Officers Association.

Colleges’ Latest Offer: Deals: Liberal-Arts Schools Dangle Bargains in Response to Concern Over Cost, Value

Loeschke said the athletic department’s budget deficiency was the result of slowed enrollment growth, not mis-management by Waddell. Student fees account for $14 million of the Towson’s $18 million athletics budget. Gill and others had suggested raising the fees slightly, but Loeschke refused and said the issues of financial stability, Title IX compliance and “competitiveness” — meaning the ability to fully fund the remaining sports — were so inter-connected that only the cutting of sports could solve all three problems.

Towson president decides to cut baseball, men’s soccer (emphasis added)

What can’t go on forever, won’t.

For more, see EduBubble and Center for College Affordability and Productivity.

Ozymandias

Unfortunately, it seems that the future Aldous Huxley predicted in 1932, in Brave New World, is arriving early. Mockery, truculence, and minimalist living are best, then enjoy the decline. However, we do need a Revolving Door Tax (RDT) and to prosecute politicians and staff and their “family and friends” who profit from insider trading.

Tags: , , , , , , , , , , ,