The Higher Cost of Higher Education

[dave1949]

This information is from Bowling Green State University in Bowling Green, Ohio. It happens to be where my BS degree was earned, 1972. :laughing:

Average annual BGSU fees and tuition: $10,590. Third highest of the 13 universities that make up the state university system.

BGSU president's salary after a 2% raise in October: $390,274 plus a $50,000 bonus that was part of her contract agreement.

University Board of Trustees contracted with an international management consulting firm to find where expenses could be trimmed, improved efficiency, "evaluate the current state of the universities operating structure", the usual. The purpose of the study was to keep tuition as low as possible for students. Cost: just under $500,000.

Last February 73 non-tenured faculty cut.
Current planned faculty cuts: 30 additional non-tenured positions.

2012 salaries in Ohio:
Governor $144,269
Lieutenant Governor $142,501
Secretary of State $109,554
Attorney General $109,554
Treasurer $109,554
Chief Justice $150,850
Median personal income $31,284


Do you think a public tax-supported university president should have a $440K salary?
Do you think a university president with a $440K salary ought to be hiring $500K consultants to do their job for them?

Tuition for my first semester at this college in 1967 cost $180. ($1221 in 2012 adjusted for inflation.)
It's no wonder college is creeping out of the financial reach of many kids.

 

[adventure bob]

This is the reason that onlines are going to swamp the brick and mortar institutions. They are pricing themselves out of existence.

 

[smstonypoint]

Do you think a public tax-supported university president should have a $440K salary?

This is outrageous -- she's making more than the football coach ($375,000 according to Salaries & Contracts)

Seriously, college/university presidents make big bucks. "The median pay package for public university presidents, including deferred compensation and other one-time payments, jumped 5% to $441,392 for the 2011-2012 fiscal year, according to a Chronicle of Higher Education analysis of 212 presidents at 191 institutions. Meanwhile, the median base salary rose 2% to $373,800" (Public university presidents raking in higher pay - May. 12, 2013).

Most of the presidents I served under played little or no role in the day-to-day operations of the University: they appeared to spend most of their time fund-raising -- dealing with the legislature, private and corporate donors, etc.

This is the reason that onlines are going to swamp the brick and mortar institutions. They are pricing themselves out of existence.

Gary Becker and Richard Posner -- two very smart dudes -- discuss higher college costs at Why Does College Cost So Much? Posner - The Becker-Posner Blog and Higher College Costs and its Consequences- Becker - The Becker-Posner Blog. Posner says online course "are not a panacea, but they are the most promising response to the problem of the high costs of a college education in America."

Steve

 

[2LaneCruzer]

This is outrageous -- she's making more than the football coach ($375,000 according to Salaries & Contracts)

Seriously, college/university presidents make big bucks. "The median pay package for public university presidents, including deferred compensation and other one-time payments, jumped 5% to $441,392 for the 2011-2012 fiscal year, according to a Chronicle of Higher Education analysis of 212 presidents at 191 institutions. Meanwhile, the median base salary rose 2% to $373,800" (Public university presidents raking in higher pay - May. 12, 2013).

Most of the presidents I served under played little or no role in the day-to-day operations of the University: they appeared to spend most of their time fund-raising -- dealing with the legislature, private and corporate donors, etc.



Gary Becker and Richard Posner -- two very smart dudes -- discuss higher college costs at Why Does College Cost So Much? Posner - The Becker-Posner Blog and Higher College Costs and its Consequences- Becker - The Becker-Posner Blog. Posner says online course "are not a panacea, but they are the most promising response to the problem of the high costs of a college education in America."

Steve

A lot has changed in 50 years; in 1963 I was paying $5.00 per hour for my tuition at a state school; minimum wage was about $1.25 per hour. I was able to live at home, commute to school about 20 miles daily, hold down a job and make ends meet...but just barely. Sometimes Sharn Jean had to pay our way into the drive in, but what the hey! My first job after college paid $364 per month, period. No bennies except a week's vacation after 1 year. I have always maintained that to get an education all you needed was desire and opportunity. Costs today are effectively removing the opportunity from a lot of kids with the desire. My grandkids are getting a full ride from their parents, but not everyone is that fortunate.

 

[Express]

The cost of education is out of control. I have two kids in school now at a cost of about 84k annually. They are both great swimmers and where able to get some $ money for there swimming. What disturbs me the most is the Gov did very little to help these kids pay off the loans. In the past many people took advantage of the system and defaulted on their college loans and payed nothing back. What makesthings even worse is there is little assurance a job is waiting for them when they graduate

 

[EddieWalker]

I don't begrudge what anybody makes except those in the public sector. What bothers me about the cost of higher education is that it's going up because the government is providing money for it in the form of student loans. Lower the amount of the loans, make qualifying for them more difficult and limit what the money can be used for will result in the schools having to charge less because their cash cow isn't giving up the milk anymore. I personally know several women in their mid 30's to 40's who are going to school and living off of student loans. They have enough for school, a place to live and food with enough extra that they get to go out and party several nights a week. I know that they will never be able to pay off this debt, and I seriously doubt they will even try. They even complain about the cost of education, but don't have jobs!!! The schools are all about making money, and the best source of that is the government. Get the government out of education and the costs will return to where they should be and the teachers might just start teaching the kids something they can use to get ahead in the world.

Eddie

 

[dave1949]

A lot has changed in 50 years; in 1963 I was paying $5.00 per hour for my tuition at a state school; minimum wage was about $1.25 per hour. I was able to live at home, commute to school about 20 miles daily, hold down a job and make ends meet...but just barely. Sometimes Sharn Jean had to pay our way into the drive in, but what the hey! My first job after college paid $364 per month, period. No bennies except a week's vacation after 1 year. I have always maintained that to get an education all you needed was desire and opportunity. Costs today are effectively removing the opportunity from a lot of kids with the desire. My grandkids are getting a full ride from their parents, but not everyone is that fortunate.

Similar to my own experience, just four years earlier than mine. I was making something around $2/hour when I entered college, lived at home. I paid everything for my car, clothes, most of my meals since I was seldom home, and college from that. It was tight, sometimes I had two jobs, but doable.

The inflation calculator says $2 in 1967 is equivalent to $13.57 in 2012.
The Inflation Calculator

Just comparing the minimum wage, or something less than $10/hour, to that inflation shows where the opportunity has gone. Add in the fact that college costs have far exceeded inflation and the ability to work and pay for college has vanished.

Steve: Don't even think about sports, coaches and athletic directors. They could begin by plowing up the football field and planting food. I'm not interested in paying to operate NFL/NBA/NHL/MLB training academies. :laughing:

 

[HillStreet]

You're right Eddie, government money is plentiful and easy to get. Colleges and universities grab it because it's there, and students grab it because it's there. Too many people just don't look at the value of the education they are buying.

Also, I have a couple of close associates' kids and extended family members that are in Ivy League schools ($50k + a year) studying political science, hoping to get into government service or politics. That scares me because these young people could not ever identify with my political views-- being a guy with grease on my hands and a sore back making ends meet.

Sooner or later, this gravy train is gonna dry up.

 

[econometrics]

I think Mike Rowe of Dirty Jobs has some VERY good insight on this very topic.

Watch: Mike Rowe on How Many Are Following the

 

[dave1949]

I think Mike Rowe of Dirty Jobs has some VERY good insight on this very topic.

Watch: Mike Rowe on How Many Are Following the

Good article. That is another side of the situation, college isn't for everyone. We need the abstract eggheads and the talented hands-on trade artists.