Higher Education is changing and may be indicative
of some challenges that will need new solutions and better ways of managing the
educational system. A report by the Joint Legislative and Audit and Review Commission
(JLARC) to the general assembly of Virginia indicates a number of important
education trends such as cost, state investment, secondary higher education
services, student loan debt, and graduation rates of both Virginia and the
nation. Even though the report focused on Virginia it did highlight some
national trends and changes.
A Virginian report indicates that the majority of
newer higher education costs are a result of auxiliary services. At 15 Virginia
based higher education institutes, spending increased from $2.6 to nearly $6
billion dollars in the past two decades. Staff salaries, benefits and
maintenance were not the majority of these increased costs. Higher levels of
spending were found in academic services, research, academic support, student
support, housing, dining and sports.
Since 1991 to 2011 the institutes of higher
education collected more revenue than many comparable institutes in other
states. In 1991 they collected approximately $16,229 to a national average of
$10,952 while in 2011 they collected $35,000 to the national average of
$27,000. State funding of this cost declined from 27% in 1991 to 15% in 2011. Thus,
even though more money is being collected, more of that money isn’t necessarily
making it into core educational functions.
This is not unique in the sense that most states are
investing less in higher education in terms of total percentage of costs. The
national average in 2011 was 39% and this has declined to 20% in 2011. Together
it indicates that not only Virginian traditional education costs more but also
is becoming more expensive nationally. The problem is that the increase in
spending is also matched by declines in state spending. It appears to be
providing a trend toward a collision course where college becomes strictly a
student concern.
Despite these difficult statistics Virginia has done
better than the national average in graduating approximately 46% of students
within four years. This is good news as this means students are staying focused
and getting out of college faster thereby reducing their costs and increasing
their overall productivity to the economy. The faster students can learn needed
skills and move out into the working fields the better their rate of investment
return.
Problems do arise when students are shouldering a
greater proportion of costs. As state funding has declined students have had to
increase their debt load to continue their education. In 1992 the average
student loan amount was $3,318 while in 2011 it was $9,893 meaning that there
was little or no way for students to attend college without hedging out their
current education with future earnings.
If we take a critical look at this information we
may find that increases of costs not based in instruction as well as decreased
state spending creates a collision course for student loan debt. As traditional
higher education institutes raise their spending in services outside of
instruction such as room, board, and student support and sports they leaving
behind a proportion of their traditional purposes. Yet these prices come with
greater student loan burdens on students who have little to no option but to
hedge their future earning power to pay for these services. On a positive note
the encouragement of an actual four year degree helps to move students from
learners to producers in a quick paced manner.
