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College Affordability & Cost
After seeing enrollment decline for the first time in a decade, the University of Charleston, in West Virginia, slashed tuition by 22% for the upcoming school year hoping to entice more students. Tuition for new students will be $19,500 per year beginning in August - down from the current rate of $25,000. In an interview with CNNMoney, the university's president, Dr. Edwin Welch, explains why he took this unusual step and what the impact has been so far.
Shrugging off widespread criticism of its college tuition cap proposal, the Obama administration mounted a public-relations blitz Monday to sell the plan to students and university leaders. Despite its grim chances in Congress, the plan could still reap benefits for the White House, specialists say. It may help restore enthusiasm among college-age voters, a critical constituency for Mr. Obama's re-election effort. College leaders and many Republicans believe the measure would represent an unprecedented federal intrusion into the higher education market by essentially instituting price controls.
Alan Walker, president, Upper Iowa University, writes: How education is delivered is really important, because it has a huge influence on the costs of education to our students, as well as on recognizing that many cannot commit to the traditional four-year college structure. Largely because of the economic realities, the need to offer a structure that can still accomplish the student's educational goals at an affordable price is imperative. We've adopted an innovative structure with essentially four avenues leading to a degree.
There's no doubt rising college tuition costs are making it harder for more students to enroll in school and stay there until graduation. And Mr. Obama is right that schools need to be smarter about controlling costs without sacrificing quality. But withdrawing federal aid from schools that fail to hold down costs would need to be done carefully, lest it produce just the opposite of the intended result. Everyone wants college to be more affordable. But officials are going to have to be a lot clearer about what they mean by affordability and how that standard will be applied.
Much of what the federal government does to help college students is in indirect support, through grants, loans and jobs, which affect people attending private as well as public colleges. Yet that level of support can't keep pace with demand, much less the super-inflationary flow of tuition and other college costs. The imbalance is birthing a generation of graduates defined more by overbearing debt than its preparation for employment.
Average tuition and fees at public four-year colleges is $7,605 per year for in-state students and $11,990 for full-time out-of-state students, according to a 2010 report from CollegeBoard, a nonprofit organization that researches higher education trends. Time for plan B. Public two-year colleges charge an average of $2,713 per year in tuition and fees. In addition to utilizing community colleges, other methods are being explored to keep costs down or provide alternatives to traditional four-year colleges.
David J. Skorton, President, Cornell University, writes: In the wake of President Obama's State of the Union Address last month, many Americans are talking about college affordability. As they have been. As well they should. At Cornell we, too, are struggling to find the resources to sustain our commitment to access. And the vast majority of schools don't have the resources to do what we have done. So, the Obama administration needs to work with institutions of higher education to customize approaches.
There is a wide range of support at every level for cutting the cost of college. On Tuesday, the National Association of Independent Colleges and Universities, which represents more than 1,000 nonprofit, independent colleges, gathered to discuss strategies and concerns about the president's plans.
President Obama's proposed reform plan would require colleges that receive federal aid to create "a scoreboard" that gives actual costs, graduation rates and potential earnings for graduates. His idea for establishing a $1 billion fund to provide grants to states that improve graduation rates and reduce costs is a good one. Determining what amounts to good value will be difficult, and persuading Congress to move forward on any of these ideas will be hard. But Mr. Obama is right that the federal government should begin leveraging its sizable investment in higher education for reform.
During a panel discussion at the meeting of Christian colleges, a president challenged me on the need for additional government oversight. Let the "free market" correct rising college prices on its own, he said. The problem is, the current financing mechanism for college is far from a free market. Government subsidies account for close to 90 percent of revenues at some colleges when you add up grants, loans, and research funds.
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