Higher education in the U.S. is facing a number of complex and inter-related issues that can only be effectively addressed by all stakeholders (students, government, parents, financial institutions, educators and administrators) working together for the common good of again having the most effective higher-education system in the world.
These issues include an increasing student-loan debt load which has grown from around $100 billion in 2000 to approaching $1 trillion today. The average student loan debt for 25-year-olds is now at $20,236, compared with $10,648 in 2003.
The increase in student debt has been driven primarily by the increased costs of higher education, which have grown by 200 percent since 1987 (inflation-adjusted) at four-year state schools due in large measure to administrative and infrastructure cost increases, and not inflation; and a decline in the quality and effectiveness of U.S.
higher education as compared to both other developed countries as well as some developing counties. We are spending more, getting less, and putting at risk not only our standard of living but also the very institutions that we depend on to prepare our future generations for leading productive lives.
The solution is not more money but a redirection of resources, a rethinking of our mission as educators, and some tough discipline and accountability on the part of leaders in government and administration. Our common goal should be the return of excellent and affordable education for everyone who wants it and is capable and committed to achieving it.
In my judgment, it will take five major initiatives and a long-term commitment of all constituencies to change the current self-destructive path that higher education is now on.
1.) The acceptance on the part of financial institutions and higher education to more effectively manage student loans.
Using an investment model to manage who gets student loans, what they can be used for (tuition, general education fees, and books), and how much is granted is a required first step. Loan amounts should be based on projected earnings potential, as it is a loan that must be paid back with future earnings (e.g. an engineer or medical professional should be able to borrow more than a history major, as they generally have higher earnings potential). We should look at ability to pay, as we do with any other investment decision. We need to manage student loans as if it were our money, and not someone else’s.
2.) Begin to address the costs of higher education.
Some institutions of higher education are beginning to take a zero based budgeting approach to costs and future budgeting (dropping services and programs which are not cost-effective or do not directly contribute to the education of the student). This will require strong leadership and some difficult and perhaps unpopular decisions. Shift more resources to actual teaching and less to administration and infrastructure.
3.) Embrace technology where it can be used to improve both the quality and the costs of education.
Some higher-education institutions and individual educators are fighting the use of technology as they see it as a threat to their security or to the quality of education. We need to commit ourselves to doing what is best for the students and their education; many educators are finding that they can both enhance the learning experience of students and reduce the cost of education.
4.) Better align the courses and programs offered by higher education with the needs of today’s society and with professions that offer growth career opportunities.
A number of business and governmental leaders report that many college graduates are ill-prepared for many of the jobs currently available. A stronger partnership between industry and education would help better align education with the needs of employers. A review of the courses currently offered to make sure they meet today’s needs and not yesterday’s would be a good starting point.
5.) Make sure that students who are entering higher education are in fact qualified and adequately motivated to complete a degree program.
Studies have shown that only about 40 percent of those who start a college program end up finishing. There is nothing wrong with not going to college. We must remove the social stigma of bypassing it. There are many well-paying, respectable professions that do not require a college degree. Those who are self-motivated will succeed; we cannot force students to learn.
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Changing the course of higher education will not be easy, but it is essential to the continuation of our standard of living in the U.S. for the next generations. Do you have the will to work together and the courage to begin to make the changes needed? We all have to participate, and those in leadership positions in higher education and government must lead.
The time is now.
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Clint Vogus of Jonesboro is a concerned American business executive and educator.
Editorial, Pages 15 on 07/25/2013