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High tuition costs mostly stem from the Omnibus Budget Reconciliation Act 1993

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Re: High tuition costs mostly stem from the Omnibus Budget Reconciliation Act 1993

#251
post #183

Earlier quoted context omitted.

College costs have increased due to decreased state funding and increased regulation (both legal and from accreditors), which requires more administrative staff. Ironically, decreased state funding leads to an increase of administrative staff too, as universities invest in grant offices, development offices, and outreach departments in an attempt to find more funds.

Correct me if I'm wrong, but I think this is at least partially wrong. Are you only speaking of public universities? I worked at an expensive, private, liberal arts, non-profit college, where I witnessed revolting inefficiency. Do such schools receive _significant_ state funding? Any? One example of the waste I witnessed: at the end of the financial year, the student services departments where I worked would blow wha…

> Are you only speaking of public universities?

Decreased (per capita, inflation-adjusted) state (and federal) funding for schools (mostly state) and student grants (state and federal) effects both public and private schools.

Re: High tuition costs mostly stem from the Omnibus Budget Reconciliation Act 1993

#252

Wait, the claim doesn't match the little data presented and the primary claim is not examined or supported. 1) The Omnibus bill passed in 1993, but from the graph tuition was already increasing at 200% greater than inflation, and appears to have started in the mid 1980's; and 2) Why would the fact that the loans are now from the government mean that universities no longer had to compete on costs? The bill ultimately…

Furthermore, the rate of increase really picks up around 2002/3. What happened then?

I'd assume universities didn't just take a decade to realize the implications of a 1993 law change.

Re: High tuition costs mostly stem from the Omnibus Budget Reconciliation Act 1993

#253

Earlier quoted context omitted.

few people want to go there because the bit of paper you get at the end is the value and those a worth less than the bits of paper you get from other universities.

Plus, usually they don't offer anything more than an associate's degree. Can't remember the last time I saw anything less than "bachelor's degree or equivalent experience" on a job listing.

That's what I mean about the bit of paper being worth less than at other universities.

Re: High tuition costs mostly stem from the Omnibus Budget Reconciliation Act 1993

#254
post #224

Earlier quoted context omitted.

Sure - if you want to exchange your ability to get any financing for 7 years for ~$100k. Additionally, IIUC, you can't just declare bankruptcy because you feel like it. But maybe my understanding is incorrect.

Some people have far more than $100k in debt, so the tradeoff might be far more attractive. If you're finishing undergrad at 22, your bankruptcy won't harm you for buying a house at 29-30 which is kind of when you want to buy a house anyways since saving up 25% takes a good amount of time. It seems like a very worthwhile trade to declare bankruptcy. As for being allowed to declare, the time to do it is before you hav…

> Some people have far more than $100k in debt, so the tradeoff might be far more attractive.

That would be the lender's problem for lending far more than anyone reasonably needs to be lent to obtain a degree. They'd have to price the loan accordingly.

> It seems like a very worthwhile trade to declare bankruptcy.

You don't get to just declare bankruptcy on a whim because the outcome is favorable to you.

Re: High tuition costs mostly stem from the Omnibus Budget Reconciliation Act 1993

#255

I feel like this article doesn't support it's thesis at all. Why does the government lending directly result in less downward price pressure than guaranteeing loans? The only hypothesis I can imagine is that people anticipated something like student loan forgiveness, but that requires more evidence than what is given here (after all the government could in theory waive private loans and reimburse the lender).

Because the colleges get paid up front instead of going through the collection process 15 years later.

Colleges got paid up front before as well. The loans were not originated by the universities, they were originated by financial institutions.

Re: High tuition costs mostly stem from the Omnibus Budget Reconciliation Act 1993

#256
post #30

State funding per student has steadily declined since 1987. Tuition rates have risen in response. I don’t claim all of the tuition increases have come from the decline in funding but the decline in public funding contributes to the increase. Public colleges are more and more being run like businesses. According to this research, public funding for higher education has declined in response to increased welfare and Med…

"State funding for higher education has declined by roughly a quarter, to $7,152 per student enrolled in a public two- or four-year school in 2015, down from $9,489 per student in 1987." The article is not in disagreement with the thought that Free Federal Money displaces other sources. Also, the article does not show why tuition has risen 1200% instead of 30%.

The highest paid educator at the private R1 research university I work for makes about $200k, the average director or higher level administrator makes about $350k, while the LOWEST paid athletic coach makes $500k.

Re: High tuition costs mostly stem from the Omnibus Budget Reconciliation Act 1993

#257
post #238

Earlier quoted context omitted.

This was a student health fee that also covered health insurance for students (dental too). It was a basic program through Aetna Student Health. Also included urgent and basic services on campus as well as mental health services. I was also an online student that only attended on campus class for 1 weekend per semester. It made no sense to make everyone pay the fee that included significant amounts of benefits that w…

Okay I think I understand better. When I was a student the student health fee you were told was not insurance and compulsory. You could get insurance through the school for $1200/semester. This was mainly international, grad students and their families. Like many first in their family college students I soon discovered a lot of scholarships only covered tuition (and books) and I was left to make up the difference in…

Yeah it was eye opening for me too since my first degree was in 2000-2004 there was not such a high student health fee because it covered very basic things and I was under my parents insurance. The fees made a lot more sense when I was on campus and able to use the resources better.

I think all online degrees are over the top also because many companies will pay for them. I'm doing a CS degree right now that is online and it's more expensive (per credit hour vs. on campus). Not sure what the on campus fees are, but it seems crazy that not requiring anything more than some server hosting space to charge ~$2,000 for a 4 credit class. Luckily my employer is picking up 90%+ of the tab (maxing out at $5,250/yr).

Re: High tuition costs mostly stem from the Omnibus Budget Reconciliation Act 1993

#258

Earlier quoted context omitted.

I think many people are for tuition free for a certain amount of people based on merit. However it shouldn't be just a 5th-8th year of high school...like it seems to be becoming. When an admissions rate of a large public university can reach 95%+...we are no longer selecting the best students that will actually gain anything from going to college.

The UC schools have always tied enrollment to the top 9% of California High School seniors. As High School graduation rates increased, the UC system increased its enrollment (most recently by building a new campus). Enrollment at UC wouldn't change if it were free -- it will always be ~9% of graduating seniors.

That's great, but certainly not what most people are thinking when they are pushing for "free college".

Re: High tuition costs mostly stem from the Omnibus Budget Reconciliation Act 1993

#259

Earlier quoted context omitted.

I think many people are for tuition free for a certain amount of people based on merit. However it shouldn't be just a 5th-8th year of high school...like it seems to be becoming. When an admissions rate of a large public university can reach 95%+...we are no longer selecting the best students that will actually gain anything from going to college.

The UC schools have always tied enrollment to the top 9% of California High School seniors. As High School graduation rates increased, the UC system increased its enrollment (most recently by building a new campus). Enrollment at UC wouldn't change if it were free -- it will always be ~9% of graduating seniors.

Sorry, I must be misinterpreting, because I’m he way I read this now, you can’t get into the school system without having gone to HS in California?

Re: High tuition costs mostly stem from the Omnibus Budget Reconciliation Act 1993

#260
post #234

Earlier quoted context omitted.

Universities are centers of research so working towards funding and endowments makes sense. The students are there to learn and be a part of the existing culture. There are plenty of small and community colleges directed totally towards imparting academic knowledge however.

What percentage of published research is done by a university versus a private entity?

> What percentage of published research is done by a university versus a private entity?

What incentive is there for a private entity to openly publish valuable research in the first place? Except in certain unusual situations (monopoly justification a la Bell Labs, PR, patent applications), I would expect that private entity research results would be kept private by default so the business can maximally exploit it without assisting its competition.

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