Curbing college costs

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**Frazzled**

How about a view from you peops still in college. What do you see driving costs?
http://blogs.usatoday.com/oped/2008/12/how-to-curb-col.html

Opposing view: We're controlling costs
College presidents are making hard choices to keep tuition affordable.
By Molly Corbett Broad

Recent reports make clear that efforts by colleges and universities to keep tuition increases to a minimum are paying off. Tuition this fall showed very modest increases and, in the case of community colleges, went up more slowly than inflation.

Much of this is because colleges and universities have long pursued systematic reductions in operating costs, such as outsourcing business services, sharing some computer operations, and banding together to save money on software licenses and library subscriptions. Faculty have also cut the cost of purchasing specialized scientific equipment by using high speed, robust networks to conduct research.

But now the economic crisis has created new budget pressures. Every president I know is coping with a sudden loss of revenue — whether from reduced state support, steep losses in endowment earnings or anticipated declines in charitable giving. At the same time, they must grapple with ever-increasing labor and health care costs, rising energy and food prices, the high cost of keeping pace with scientific and technological progress, and the crushing burden of state and federal regulation.

On top of ongoing cost savings, colleges and universities have responded with additional actions that show a willingness to make hard choices. Dozens have implemented hiring freezes, offered incentives for early retirement, imposed travel restrictions and halted plans for construction. Presidents and chancellors from a number of well-known institutions have also refused or returned raises, emphasizing the importance of leading by example.

Still, it will take far more than budget cuts to assure that next year's tuition increases will be as good as this year or better — in light of the current economic climate there are no assurances, and higher education leaders are worried. But colleges are trying to get ahead of the game. I know they will do their part — embracing the opportunity to be part of the solution and exhibiting leadership in reducing cost while broadening avenues of access to a quality education.

Molly Corbett Broad is the president of the American Council on Education, which represents more than 1,600 college and university presidents.

**dogma**

Two things:

1) Abnormally high demand. Everyone wants to go to college, even people that shouldn't be trying to do so. Unless you're in the top 40-50% of your high school class, or attend a particularly elite institution, technical/career school is really a much better option. This is exacerbated by the general incentive to restrict supply through the standard of selectivity.

2) A lack of incentives to reduce costs. With the availability of student loans there is little in the way of tuition which will go unpaid.

**RanTheCid**

I'm on the verge of finishing an MBA program in a suburban Chicago private school & have spent 4 years trying to figure out what the university spends tuition on. Accounting for professor salary, admin costs, tech support and facilities, best I can figure is the university is expecting a 50% return on operations. Could be that universities are expecting each cash paying student to cover one student waving tuition on scholarships. But then, what are they using those huge endowment funds for?

**Frazzled**

heh heh as a Parent thats my question...

**dogma**

RanTheCid wrote: But then, what are the using those huge endowment funds for?

Most schools don't have particularly large endowments. The ones that do use them for development projects like athletics, new buildings, and department expansions.

**Greebynog**

My university, Goldsmiths, famous for art, is cutting back massively on art courses. They spent £150,000 on rebranding last year to go from this:

To this:

Useless.