In 2014 the Chronicle of Higher Education ran a lengthy article about higher education funding titled “An Era of Neglect.” The number of candidates proposing reforms in higher education funding this election cycle has made student debt, education funding, and education costs hot topics again, so I think now is a good time to revisit these reports.
In short, between 2008 and 2014 economic downturns and private sector commitments to paying as few taxes as possible has led to cuts in state budgets. Rises in tuition costs during this period were exactly proportional in many cases to cuts in state budgets for education, and in order to drive up admissions, colleges are increasingly investing in sports and amenities rather than in qualified educators.
The result is that the business sector is getting what they’re paying for in the form of lesser-skilled college grads, the costs of college are being increasingly pushed onto the public in the form of debt, and a new debt crisis is looming as college graduates are increasingly unemployable or underemployed, making it difficult to repay these student loans.
While colleges and universities can be more responsible in their spending patterns, that by itself isn’t enough to reverse this situation.
You might think it’s smart to just skip college altogether, but with few exceptions, bad prospects for college grads mean worse ones for those without a college education.
The only winner in this situation is the financial sector, at the expense of taxpayers.