About Dr. Maestas

Tuesday, August 12, 2014

The Price of a College Degree. Is it Worth the Price?

For several years now, Americans have been questioning the value of higher education. Is a college degree worth the thousands of dollars it costs? Does the bachelors’ degree lead to a good paying job? Higher education faces many challenges in the nation. Unfortunately, one major challenge is the escalating cost of a college education. And as Americans question its value, the college degree has begun to lose its prominence in the minds of many Americans. The evidence to support this is the decline in enrollments in colleges and universities throughout the country. The problem has been further fueled by the high unemployment rates and the need by Americans for employment and the promise of a steady income.

The National Center for Education Statistics reported that there was a 2% drop in the enrollment of undergraduates in colleges and universities across the country from 2010 to 2012. Additionally, the U.S. Census Bureau reported a decline in college enrollments in the fall of 2012 by half a million students compared to the previous year. According to Census Bureau data the biggest drop was among older students, those 25 and older, and among white students who saw a decline from 67% to 58%. Surprisingly, Hispanic and African American students did not follow the trend, but rather their enrollments increased during the same period, from 11% to 17% for Hispanics and from 14% to 15% for African Americans. More recently, the Chronicle of Higher Education related that college enrollments this past spring semester decreased by 0.8% for the third year in a row. This is compared to a 2.3% decline over the previous one year period. The biggest drop, 4.9%, occurred among four-year for-profit colleges compared to 9.7% decline last year, and at two-year public colleges, which fell by 2.7%. Thirty-seven states saw enrollment declines, while 13 states reported increases.

One logical assumption is that the drop in college enrollments was precipitated by the number of high school graduates not going on to college. The U.S. Department of Labor reported that indeed fewer high school graduates were going on to college last year: 65.9% in 2013 versus 66.2% in 2012. The drop; however, was only 3 tenths of one percent. While this is minimal, it does not account for the larger drop in college enrollments.

Today, the public and politicians expect colleges and universities to provide an education that leads immediately to a good paying job. College administrators can no longer expect students and parents to incur debt to fund an education that in many instances leads to uncertain career opportunities. Higher education has been steadily pricing itself out of the market in the minds of Americans. Data from the National Center of Education Statistics indicate that the cost of college (tuition, fees, and room and board) rose 40% at public institutions of higher education and rose 28% at private non-profit institutions during a ten-year period, 2002 to 2012. According to an August 15, 2012 Bloomberg article, “college tuition and fees have surged 1,120%… since 1978, four times faster than the increase in the consumer price index.”

Nationwide, colleges and universities have gotten so expensive creating a perception that the pursuit of higher learning is no longer as valuable as in past years. U.S. News and World Report, in a recent article, suggested that while tuition prices at public four-year colleges are growing more slowly than they have in more than 30 year, the fact remains that tuition has dramatically outpaced other consumer goods. For example, from 2003 to 2013 college tuition grew nearly 80% while Medicare grew 43.1%, Food and Beverages 31.2%, Housing 22.8%, Men’s Apparel, 6.9% and Women’s Apparel 5.6%, as compared to an increase in the Consumer Price Index of 26.7% during the same ten-year period.

The dramatic increase in college costs has been due in large part to the recession and a weak economy, both at the state and national levels; dramatic cuts in state funds to public higher education institutions; and drops in enrollments, due to the scrutiny of the value of higher education. Inside Higher Ed recently reported that there has been a 7.6% drop in state appropriations for colleges in 2012, the largest decline in a half a century. Forty-one of the fifty states cut their spending for higher education from as little of 1% in Indiana to as much as 41% in New Hampshire. In the last five years spending by states nationwide is down 28%. All but two states, North Dakota and Wyoming, cut funding for their institutions of higher education. Thirty-six states cut higher education funding by more than 20%, eleven states have cut funding by more than one-third, and two states, Arizona and New Hampshire, have cut their higher education spending in half. At the federal level, budget cuts have impacted research programs, student support and financial aid programs and many other programs that support students who attend our institutions of higher education.

In response to these budget cuts, colleges and universities have raised tuition to make up the difference. Over the last 25 years, the share of public university revenues coming from tuition and fees has climbed steadily to 47% this year, from 23% in 1987, according to a March 6, 2013 article in the New York Times. Moreover, college administrators, due mostly in response to pressure coming from legislators and governors, have begun to freeze tuition and fees, a move that unfortunately is not sustainable, given that the other costs of doing business will not freeze. As colleges raise tuition costs, the anticipated effect is a potential drop in enrollments. To ameliorate this effect, colleges have discounted tuition by providing scholarships and other forms of student financial aid, a practice that private, high-priced institutions have followed for many years. But rather than adjusting to a new model of doing business when the economy starts to recover, the reliance on tuition revenue has created a "new normal" for higher education funding that is simply not sustainable.

Many Americans have begun to believe that a bachelor’s degree is now the financial equivalent to a high school diploma of ten years ago. However, the most important message that must be disseminated is that with a college degree, graduates are more likely to obtain higher quality and more well-paying jobs. According to College Board, college graduates with bachelor’s degrees have a 61% higher earnings potential than high school graduates.

Historically, higher education was originally created in Greece in the sixth century BC to impart knowledge to the elite and the clergy. It later expanded to medicine, philosophy, mathematics and the study of the nature of humanity and the universe. Through the centuries, higher education has maintained the imparting and expanding of knowledge as one of its primary functions, but what has changed is the characteristics of the students. Today, higher education prepares individuals to think critically, analyze, and draw conclusions to solve problems in an ever increasing global society. Liberal arts degrees, for example, teach these skills, yet a bachelor’s degree in liberal arts does not lead immediately to a high paying job. Therein lies the dilemma for higher education. Does higher education continue to educate students with a centuries old model or does higher education change to meet the needs for our society?

The dilemma institutions face, as they continue to raise tuition and fees at record levels, is that attendance will become out of reach for an increasing number of students, especially minority, first-generation, low-income students, which will diminish dramatically their chances of completing a degree. Horace Mann, the great education reformer of the 19th century, once said, “Education … is the great equalizer…” I am a perfect example of this phenomenon.

One of the primary assumptions in our society is that a higher education degree leads to a good paying job. However, not all college degrees lead to an immediate career and a good paying job, yet increasingly the public and more specifically politicians are expecting colleges to produce larger numbers of job-ready graduates. The challenge facing higher education is to move away from the ancient model of educating for enlightenment and changing the paradigm to meet the needs our society in the 21st Century. College and University presidents, particularly in the public sector, must get together and re-invent the university for the 21st Century. If not, students will vote with their feet as they are starting to do now.

Monday, August 4, 2014

Sexual Predators on College Campuses

Prominent in the news today in the nation and especially in higher education is the problem of sexual assaults on college campuses.  The issue has become so big that it is now considered a crisis.  Just pick up any newspaper or weekly periodical to confirm that sexual assaults are now a major national problem across colleges and universities.  For example, the cover of Time Magazine May 26, 2014 issue reads “Crisis: Sexual Assaults in Higher Education.”

First, let me be clear, sexual assault and rape is not right.  Perpetrators should be convicted to the fullest extent of the law if guilty.  We as a society should not tolerate rapists. It is totally unacceptable.

Consider some frightening national statistics compiled by the New York State Coalition Against Sexual Assaults as reported by Sarah Lawrence College:
  • 1 in 4 (25%) women will be a victim of a sexual assault on college campuses during their academic career.
  •  At least 80% of all sexual assaults are committed by an acquaintance of the victim.  
  • 48.8% of college women who were victims of sexual attacks did not consider what happened to them as rape.
  • More than 70% of rape victims knew their attackers, compared to approximately half of all violent crime victims.
  • On average, at least 50% of college students’ sexual assaults are associated with alcohol use. In a national study which reported a represented sample of college students, the result found that 74% of perpetrators and 55% of rape victims has been drinking alcohol prior to the assault.  In a survey of high school students, 56% of girls and 76% of boys believed that forced sex was acceptable under some circumstances.  
National attention has been drawn to this issue and has captured the ire of federal legislators.  On Wednesday, July 30, 2014, a bipartisan group of eight senators led by Claire McCaskill, a Democrat from Missouri, introduced legislation, Campus Safety and Accountability Act, to curb sexual assaults on the nation’s college and university campuses.  The guts of the bill would impose stiffer fines for colleges if they don’t comply with federal rules. The legislation is aimed at flipping current incentives that result in what is being called “sweeping sexual assaults under the rug” to better protecting and empowering students and holding both perpetrators and institutions accountable for sexual assaults.  The bill would also require colleges to conduct surveys to determine the severity of the problem and gives the U.S. Department of Education the power to punish colleges that don’t comply.  It would also take away the power of athletic departments to handle investigations of athletes and require colleges to designate “confidential advisers” to coordinate support services for sexual assault victims.

The legislation comes just a year after a Senate subcommittee released a survey showing that 41% of a sample of 236 colleges had not conducted investigations of alleged sexual assaults during the last five years even thought some of these colleges had reported sexual violence incidents during the same time period.  This is precisely why legislators are upset and are taking action. “Colleges now have no incentive to keep accurate records of sexual assaults” said Sen Kirsten Gillibrand, one of the sponsors of the bill, “we are flipping the incentives” … “Underreporting will have stiff fines and real teeth.” 

Last year Congress passed the Campus Sexual Violence Elimination Act.  This new law requires public and private institutions of higher education to increase transparency about the scope of sexual violence on campus, to provide more information about standards in college conduct proceedings, and to provide campus- and community-wide prevention education programs.  These new polices must be in place by this fall.

The counter reaction by colleges is represented by Terry Hartle, a senior vice president at the American Council on Education, which represents colleges and universities in Washington Hartle called the legislation "a pretty heavy-handed approach."  He goes on to say that "Sexual assault cases on college campuses are often incredibly difficult to resolve.  I think some of the sponsors believe universities do not want to do the right thing."

Having been a president of  a public university, I, for one, took sexual assaults very seriously, making sure the victim(s) received the appropriate services and counseling, the incident(s) were properly investigated, and the alleged perpetrator(s) prosecuted, if the facts in the case warranted.  I can assure you that every college and university president in this country takes sexual assaults very seriously and takes the appropriate actions. In almost all cases it is up to the campus police and the district attorney to determine if charges are to be filed and what charges will be filed, based on the facts of a given case. 

However, one has to consider that not only does the victim have rights, but also the perpetrator.  One of the basic  tenets of our legal system and that of colleges’ judicial process is the right to due process.  Due process is rooted in the Fifth and Fourteenth Amendments to the U.S. Constitution and states that “No free man shall be seized or imprisoned, or stripped of his rights or possession… except by the lawful judgment of his equals or by the law of the land.” This has been expanded by the U.S. Supreme Court over the years to include the right to a hearing of peers, notice of the charges, right to present evidence and call witnesses, the right to know the opposing evidence, the right to cross-examine opposing evidence and witnesses, the opportunity to be represented by an attorney and other provisions.  I can tell you that every university adheres to the principle of due process in sexual assaults and other incidents that occur on campus.

Terry Hartle’s comments initially can be viewed as defensive on the part of those of us in higher education.  My own experience as a president it that Terry is correct in stating that sexual assault cases on campus can often be very difficult to resolve. Gathering the facts take time and often the victim is reluctant to talk or provide evidence.  On the other hand, the perpetrator often times provides a counter story and evidence suggesting that the sex was consensual rather than forced.  Many campuses now have cameras in the hallways of residence halls and always provide irrefutable evidence that a crime was most likely committed.  It is clearly important that Presidents of colleges and deans of students do the right thing in sexual assault cases by following the colleges’ policies and procedures, applying due process and, if the evidence suggests, push for prosecution.  I believe that every college president in our country does the right thing.   if not, I can assure you he or she would not be president for long. 
 
I have a 17 year-old daughter who will start her senior year in high school this fall.  Having worked in higher education almost all of my entire career, I know intimately what happens in colleges and universities, especially at parties where alcohol and drug use and abuse leads to many sexual assaults. In a time when there is a 25% chance of female students being sexually assaulted, a sober discussion by administrators needs to be started immediately.  I certainly have begun to seriously ponder this question, and will be advocating for more action by college and university presidents in future articles. My daughter will be entering college next year, and I want to know, as a parent, that she will be safe.