At the State of the Union Address, President Barack Obama announced a proposal to provide free college to everyone. Free education at a community college that is, not at a four-year college or university. His proposal is being called the free college plan and his idea is to make two years of college "as free and universal in America as high school is today", (Chronicle of Higher Education, Jan. 21, 2015).
Since the beginning of his administration, President Obama has been a big proponent of community colleges. In 2009, he proposed in his budget $12 Billion for community colleges, but Congress approved only $2 Billion. The following year, he proposed the infusion of $5 Billion to modernize community colleges through his American Jobs Act, which did not pass. In his fiscal year 2013 budget, he proposed $8 Billion for a proposal entitled “Community College to Career Fund," which would provide money to community colleges and states to form partnerships with businesses to train an estimated two million workers in high-growth and in-demand areas. Congress did not approve it and the President again included it again in his 2014 budget, but yet again it didn’t get congressional approval.
President Obama believes that community colleges have done a great job of educating American Citizens. He points to significant enrollment growth in community colleges in spite of the recent recession and massive cuts to community college budgets.
Moreover, it’s important to note that community colleges educate 44 percent of all the undergraduates enrolled in higher education, including 52 percent of all Hispanic students and 44 percent of all African-Americans. The community colleges also enroll the highest percentages of low-income students with far fewer resources than other types of institutions. For example, on a per-student basis, community colleges' educational and general expenditures are less than half those at public research institutions, (Chronicle of Higher Education, Sept. 14, 2011)
The President’s free college plan calls for the federal government to pay for about three-quarters of students’ tuition costs and for the states to pick up the rest. In order to receive free tuition, a student would have to be enrolled at least half-time, maintain a 2.5 grade-point-average or better, and make satisfactory progress toward a degree. However, the plan isn’t cheap, its estimated price tag is approximately $60 Billion over a ten-year period. Additionally, if enacted, it would save full-time students an average of $3,800 in tuition per year and impact over nine million students. Republicans in Congress have already dismissed the idea.
One interesting issue to point out is that missing from the President’s speech this year was his previous tough talk on the high costs of college, which he has included in his past addresses to Congress. The President also didn’t mention his college-ratings plan. In both 2012 and in 2013, President Obama took colleges to task over rising costs, putting them "on notice" that the government would not continue to subsidize the persistent increases in tuition.
Free higher education is not a new concept. According to Wikipedia, forty-four countries provide a free college or university education (http://en.wikipedia.org/wiki/Free_education). So why should the richest country in the world not provide a free system of higher education? A good place to start would be at the community colleges and provide a free education for the first two years. President Obama should be praised for his proposal for a free college plan.
However, I expect that his proposal will face stiff opposition by the Republic controlled Congress. Nevertheless, let’s hope and pray that Republicans will see the light and approve this important initiative. Or maybe the American people can place enough pressure on the Republicans to support and pass the legislation behind the plan. After all, don’t you think our citizens deserve a free education? We provide a free education from kindergarten to twelfth grade. Why not a free college education?
Showing posts with label college fees. Show all posts
Showing posts with label college fees. Show all posts
Friday, February 6, 2015
Tuesday, October 21, 2014
Controlling Tuition Costs
A common complaint you hear these days by students and parents is the rising cost of college tuition, in some cases, a dramatic raise in tuitions and other fees. University administrators argue that the increase in tuition and fees is needed to maintain a quality education for their students. In order to maintain a quality education, universities have to attract top notch faculty, which translates into paying these professors high salaries.
Critics of colleges and universities argue that a college education is already overpriced. To add insult to injury, after students and their parents pay exorbitant costs for a college education, graduates can’t find work, as many of the undergraduate majors do not lead to good paying jobs immediately upon graduation.
Students and their parents are now questioning the value of a college education and evidence of this is the leveling of enrollments, or in some cases enrollment decreases, that we have seen recently in higher education institutions. College and university administrators have been heeding this concern and are instituting tuition freezes, tuition leveling and even tuition cutting. Tuition freeze is typically defined as tuition that is kept unchanged for a specified number of years; however, other fees and room and board charges are typically increased each year. Tuition leveling is where tuition is frozen for four or more years for each class, but college increases tuition for each successive incoming class. This is also known as a guaranteed tuition rate or tuition lock. As the name implies, tuition cuts are where the college reduces tuition by a certain percent, 10%, 20%, or more, and is invariably a one-time event. One side effect of tuition cuts is that the college will also cut financial aid at the same time, since financial need will be reduced for all students.
A survey by conducted FastWeb last year indicated that 21 colleges cut tuition by as little as 8% to as much as 50%. Some of these schools were very creative in cutting tuition, for example, cutting in only certain degree programs or only in-state tuition. One of the positive results of cutting tuition is an increase in student enrollments, which can make up for the lost revenue in tuition. One college in the survey cut tuition by 42% and saw an increase of 60% in freshmen students.
In the same survey, 64 colleges were reported to have frozen tuition. Tuition was held constant for a period of four years, but tuition was increased for each new freshman class entering the university in subsequent years. If a student dropped out and returned, they would have to pay the new tuition rate at the time of reentry, typically higher tuition.
Thirty-two colleges reported that they had instituted tuition leveling. This is becoming popular among college students and parents as costs are held constant, which allows them to better plan for the cost of college. Students are now viewing tuition leveling or tuition cutting as a contractual agreement between the college and the student. Tuition freezes are considered more common in community colleges and public four-year colleges and less common in private four-year schools.
However, students much be cautious not to assume that those colleges that have frozen tuition will keep it frozen throughout their entire college education. During times of a recession, as history has demonstrated, college and university administrators raise tuition to make up for the loss of state and/or federal funding. Moreover, the trend during the last several decades has been for states to decrease funding for their colleges and universities. If the trend continues, tuition freezes or cuts may not be possible.
As a former president, I can tell you that freezing or lowering tuition is a very difficult and tricky task. The costs of operating a college or university are typically fixed costs and rarely, if ever, do they decrease. If anything, operating costs like utilities, employee benefits, to name a few, usually raise at rates higher than the cost of living. Employee salaries are another major cost of operating a university and being able to give salary raises when you are freezing or cutting tuition, can be difficult, if not impossible. For most colleges and universities, tuition is the major source of revenue.
I commend the colleges and universities who have frozen or lowered tuition. I hope that other institutions of higher education follow the example set by these colleges. If colleges and universities do not become more cost effective, I fear that future students will begin to vote with their feet. The signs are already there.
Critics of colleges and universities argue that a college education is already overpriced. To add insult to injury, after students and their parents pay exorbitant costs for a college education, graduates can’t find work, as many of the undergraduate majors do not lead to good paying jobs immediately upon graduation.
Students and their parents are now questioning the value of a college education and evidence of this is the leveling of enrollments, or in some cases enrollment decreases, that we have seen recently in higher education institutions. College and university administrators have been heeding this concern and are instituting tuition freezes, tuition leveling and even tuition cutting. Tuition freeze is typically defined as tuition that is kept unchanged for a specified number of years; however, other fees and room and board charges are typically increased each year. Tuition leveling is where tuition is frozen for four or more years for each class, but college increases tuition for each successive incoming class. This is also known as a guaranteed tuition rate or tuition lock. As the name implies, tuition cuts are where the college reduces tuition by a certain percent, 10%, 20%, or more, and is invariably a one-time event. One side effect of tuition cuts is that the college will also cut financial aid at the same time, since financial need will be reduced for all students.
A survey by conducted FastWeb last year indicated that 21 colleges cut tuition by as little as 8% to as much as 50%. Some of these schools were very creative in cutting tuition, for example, cutting in only certain degree programs or only in-state tuition. One of the positive results of cutting tuition is an increase in student enrollments, which can make up for the lost revenue in tuition. One college in the survey cut tuition by 42% and saw an increase of 60% in freshmen students.
In the same survey, 64 colleges were reported to have frozen tuition. Tuition was held constant for a period of four years, but tuition was increased for each new freshman class entering the university in subsequent years. If a student dropped out and returned, they would have to pay the new tuition rate at the time of reentry, typically higher tuition.
Thirty-two colleges reported that they had instituted tuition leveling. This is becoming popular among college students and parents as costs are held constant, which allows them to better plan for the cost of college. Students are now viewing tuition leveling or tuition cutting as a contractual agreement between the college and the student. Tuition freezes are considered more common in community colleges and public four-year colleges and less common in private four-year schools.
However, students much be cautious not to assume that those colleges that have frozen tuition will keep it frozen throughout their entire college education. During times of a recession, as history has demonstrated, college and university administrators raise tuition to make up for the loss of state and/or federal funding. Moreover, the trend during the last several decades has been for states to decrease funding for their colleges and universities. If the trend continues, tuition freezes or cuts may not be possible.
As a former president, I can tell you that freezing or lowering tuition is a very difficult and tricky task. The costs of operating a college or university are typically fixed costs and rarely, if ever, do they decrease. If anything, operating costs like utilities, employee benefits, to name a few, usually raise at rates higher than the cost of living. Employee salaries are another major cost of operating a university and being able to give salary raises when you are freezing or cutting tuition, can be difficult, if not impossible. For most colleges and universities, tuition is the major source of revenue.
I commend the colleges and universities who have frozen or lowered tuition. I hope that other institutions of higher education follow the example set by these colleges. If colleges and universities do not become more cost effective, I fear that future students will begin to vote with their feet. The signs are already there.
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