Increase of Non-Faculty Staff Contribute to Tuition Increases

For most, a college education means better opportunities in one's career. Unfortunately the price tag of higher education can mean that many will be unable to afford to pursue one.


Note. From "Just How Fast Has College Tuition Grown?" by Danielle Kurtzleben. 2013 October 23. U.S. News & World Report. Copyright 2015 © U.S. News & World Report LP.

This chart shows the change in growth of tuition each year from 2003 to 2012 compared to the change in growth of the median household income. While we are still recovering from the recent economic recession, the cost of college has continued to grow faster than the average household income. This limits the options for many Americans who wish to further their education.



Note. From "Just How Fast Has College Tuition Grown?" by Danielle Kurtzleben. 2013 October 23. U.S. News & World Report. Copyright 2015 © U.S. News & World Report LP.


Tuition has grown much faster than other areas in which we typically see price increases. This shows faster growth than the annual rate of inflation.



One factor that causes tuition to be more expensive each year is the increase of non-faculty staff positions. Their salaries, benefits, and the cost of equipment and staff that they need to perform their job contributes to increased tuition for students.

Note. From "Losing Focus: The Annual Report on the Economic Status of the Profession, 2013-14". By John W. Curtis & Saranna Thornton. 2014 March-April. AAUP.

As is evidenced in the chart above, the increase of full-time non-faculty staff from 1975 to 2011 is 369%. Even with the reasoning that additional staff would need to be hired in order to be responsible for increased enrollment, new degree programs, and other projects, this increase is higher than it should be.

The enrollment increases at different institutions do not justify most of the administrative staffing increases. This searchable table from  The New England Center for Investigative Reporting allows you to input a school's name and it gives you the enrollment and staffing changes from 1987 to 2011. As an example, at the University of Miami, there has been an 204% increase in administrators, a 258.40% increase of professional staff, and only a 39.50% increase in enrollment since 1987.

Note. From "Losing Focus: The Annual Report on the Economic Status of the Profession, 2013-14". By John W. Curtis & Saranna Thornton. 2014 March-April. AAUP. 

The salaries of these positions add to the overhead cost of a student's education.  In the chart above you can see that the highest salaries are for the administrators instead of the faculty. From 1978 to 2013 the average salary of the CEO of a public university increased by 75%. It is much higher in the private-independent sector where it rose by 175%.

Many of these administrators often receive added benefits, such as housing costs included in the University's Presidents pay package which is paid for by student's tuition.

Note. From "What They Make, and Where They Live". By Dina Rudick & Jonathan Wiggs. 2008. Boston.com. © 2015 Boston Globe Media Partners, LLC.

This is the house that Harvard President Drew G. Faust resides. Its yearly rental is $96,537 and it is included in her pay package of $822,011.

Colleges are in fact spending more money on categories other than instruction.

Note. From "Losing Focus: The Annual Report on the Economic Status of the Profession, 2013-14". By John W. Curtis & Saranna Thornton. 2014 March-April. AAUP.

The table above shows how each expense category changed from 2000 to 2010. You can see that spending in instruction is less than spending in student services and institutional support. This is troubling because the purpose of these institutions is to provide quality education for its students and therefore the bulk of the spending should happen in instruction. Instead it seems as if colleges are looking for ways to provide lesser quality education while still raising prices.

There is not much that one can do about the cost of private institutes except declining to attend. As long as there are many who are willing to pay their price tag, these institutions will continue to charge what they will. However as public institutions are partially funded from state government, you can protest these prices by writing to your congressman/woman. In order for colleges to stop overcharging us for tuition we must speak up.

Ashley Machado

References:

Kurtzleben, D. (2013, October 23). CHARTS: Just How Fast Has College Tuition Grown? Retrieved from http://www.usnews.com/news/articles/2013/10/23/charts-just-how-fast-has-college-tuition-grown

Losing Focus: The Annual Report on the Economic Status of the Profession, 2013-14. (n.d.). Retrieved from http://aaup.org/reports-publications/2013-14salarysurvey

Marcus, J. (2014, February 6). New Analysis Shows Problematic Boom In Higher Ed. Administrators. Retrieved  from http://necir.org/2014/02/06/new-analysis-shows-problematic-boom-in-higher-ed-administrators/

Rudick, D., & Wiggs, J. (2008). College president salaries and housing. Retrieved from http://www.boston.com/news/education/higher/galleries/061110_housing_and_pay_of_college_presidents?pg=4

Federal Subsidies for Higher Education Can Be Harmful

It is more expensive than ever to be able to afford a college education. Tuition rates at an average 4 year institution has risen 146% over the last 30 years. There are many causes affecting the increase of tuition but many generally believe that federal subsidies help offset the cost and makes attaining a post-secondary education affordable. While this assistance does allow those who were previously unable to pursue a degree, it also enables the institution to raise the tuition rate.

Colleges are using the basic economic model of supply and demand in order to justify rises in tuition. The reasoning being used is that cost must be high in order to keep the demand for higher education at a manageable level that they can supply. Federal grant programs are extremely attractive to students as it is money that does not need to be paid back and they are awarded to those with a genuine financial need.  So when the government increases the amount of aid to be awarded through the Pell Grant or the Federal Supplemental Education Opportunity Grant, more students are likely to attend college. Since the money that is paying for it is awarded to the student, they are more likely to accept higher costs than they would if they were using their own money. Colleges use this to their advantage and charge a premium for their services.

As federal grants do not provide enough funds to cover the entire cost of tuition students turn to loans to cover the rest. The government offers low-interest loans to those who qualify. The most popular program that is available is the William D. Ford Federal Direct Loan (Direct Loan) Program. Under this program there are four types of loans that a student may receive and they are: direct subsidized loans, which are awarded to students who require additional financial assistance as the interest on these loans are paid by the government during the time of study; direct unsubsidized loan, which are awarded to any qualifying student to cover educational costs; direct PLUS loans, which are given to graduate and professional students as well as parents of dependent students; and direct consolidation loan, which group all the loans a student might have under a single lender. From 2004 to 2013 debt from student loans has increased by 281%. The increased borrowing at artificially low interest rates creates a student loan bubble that is reminiscent of the housing bubble that led to the great recession. Therefore not only are students graduating with more debt than they would otherwise, but this model has been proven as unstable and could cause greater harm in the future.

The other forms of federal assistance with higher education is tax credits and the work study program. There are two credits that are currently being offered: the American Opportunity Credit and the Lifetime Learning Credit. These credits can give up to $2,500 back to a qualified student. The work study program is offered to students who have a financial need and is awarded in a first-come first-serve basis. The individual would only be able to work the awarded hours and in a field that is relevant to their degree.

Each type of assistance is a worthy endeavor and has the potential to help better an individual’s life. However they do not address the fundamental problem of colleges charging exorbitant fees to their students. A type of federal assistance that helps stem the cost of tuition is a tuition freeze. This is when state officials promise funding to a public college as long as they promise to not raise tuition costs. In order for the government to truly help alleviate the burden of the expense of a college degree they must demand transparency from the institution regarding their accounting process. Post-secondary institutions should not be allowed to raise tuition as they please because more students are suddenly able to pay for it through federal subsidies.

References

Burke, L. (2010). Pell Grant Increase Would Not Solve the College Cost Problem. The Heritage Foundation. Retrieved from: http://www.heritage.org/research/reports/2010/11/pell-grant-increase-would-not-solve-the-college-cost-problem?query=Pell+Grant+Increase+Would+Not+Solve+the+College+Cost+Problem

College Board. (2015). Average Rates of Growth of Published Charges by Decade. Retrieved from: http://trends.collegeboard.org/college-pricing/figures-tables/average-rates-growth-published-charges-decade

de Rugy, V. (2013). Subsidized Loans Drive College Tuition, Student Debt to Record Levels. Mercatus Center. Retrieved from: http://mercatus.org/expert_commentary/subsidized-loans-drive-college-tuition-student-debt-record-levels

Federal Student Aid. (n.d., a). Grants and scholarships are free money to help pay for college or career school. Retrieved from: https://studentaid.ed.gov/types/grants-scholarships

Federal Student Aid. (n.d., b).  Federal student loans for college or career school are an investment in your future. Retrieved from: https://studentaid.ed.gov/types/loans

Federal Student Aid. (n.d., c). The U.S. Department of Education offers low-interest loans to eligible students to help cover the cost of college or career school. Retrieved from: https://studentaid.ed.gov/types/loans/subsidized-unsubsidized

Federal Student Aid. (n.d., d). Did you know that the Internal Revenue Service (IRS) provides tax benefits for education? Retrieved from: https://studentaid.ed.gov/types/tax-benefits

Federal Student Aid. (n.d., e). Federal Work-Study jobs help students earn money to pay for college or career school. Retrieved from: https://studentaid.ed.gov/types/work-study

Healy, K. (2013). Tuition Freezes May Help Public University Students. College Xpress. Retrieved from: http://www.collegexpress.com/interests/public-colleges-and-universities/blog/tuition-freezes-may-help-public-university-students/