Apparently the Chronicle believes that Higher Education is heading for rough times as well. They even went as far to say that it’s the next bubble in the economy. I think there’s more trends going on than this (obviously) but I think this is a good start.
I’ve attached some quotes since I believe most of you will not be able to get to the article. I decided not to attach the “solutions” since I believe much of what was proposed is short-sighted. Would love to hear any thoughts.
http://chronicle.com/weekly/v55/i37/37a05601.htm
“With tuitions, fees, and room and board at dozens of colleges now reaching $50,000 a year, the ability to sustain private higher education for all but the very well-heeled is questionable. According to the National Center for Public Policy and Higher Education, over the past 25 years, average college tuition and fees have risen by 440 percent — more than four times the rate of inflation and almost twice the rate of medical care. Patrick M. Callan, the center’s president, has warned that low-income students will find college unaffordable.
Meanwhile, the middle class, which has paid for higher education in the past mainly by taking out loans, may now be precluded from doing so as the private student-loan market has all but dried up. In addition, endowment cushions that allowed colleges to engage in steep tuition discounting are gone. Declines in housing valuations are making it difficult for families to rely on home-equity loans for college financing. Even when the equity is there, parents are reluctant to further leverage themselves into a future where job security is uncertain.”
“With a drift toward higher enrollments in public institutions, all but the most competitive highly endowed private colleges are beginning to wonder if their enrollments may start to evaporate. In an effort to secure students, some institutions, like Merrimack College near Boston, are freezing their tuition for the first time in decades.
Could it get worse for colleges in the coming years? The numbers of college-aged students in the “baby-boom echo,” which crested with this year’s high-school senior class, will decline over the next decade. Certain Great Plains and Northeastern states may lose 10 percent of the 12th-graders eligible for college. Vermont is expected to lose 20 percent by 2020.”
