Some things to consider:
·
Traditional residential campuses face
overwhelming deferred maintenance, to the point that the challenge may be
literally insurmountable for many institutions.
·
Competing for students has produced
enormous institutional debt, in order to have state-of-the-art residence halls,
fitness centers, and student centers.
The cost of technology and technical support are a challenge everywhere. Many institutions spend millions of dollars
per year on athletic programs, with highly questionable return on that
investment.
·
Marketing/recruiting costs grow higher,
as institutions attempt to draw prospective students away from
competitors. In other words,
institutions are fighting to maintain class size, in the face of a declining
18-year-old demographic. Private
nonprofits continue to increase the level of discounting, in order to fill
classes.
·
People can argue about tuition and
student loan bubbles, but the cost of attendance is problematic, and defenders
of tuition increases offer tortured justification or blame cuts in state
funding. It doesn’t matter what the
explanation is, because good alternatives are developing rapidly.
·
Administrators tend to shield faculty
from financial and political realities, with the result that faculty members
are understandably confused or angry, when they are told that the model no
longer works, teaching loads are inadequate, or their institutions are forced
to rely on lower-paid adjuncts in order to support all the items in the bullets
above.
So what are the solutions?
·
Many institutions are paying closer
attention to retention. That’s a good
thing.
·
Programing and services will become
more focused and improve over time. That
also is a good thing. However, this has to come from a
student-centered, learning outcomes point of view and not just an attempt to reduce costs.
·
We can hope to increase the proportion
of 18-year-olds who go to college, or who come to our particular institution,
but the pricing/debt issues suggest that the trend will go toward attending
community colleges, university branches, and online institutions. University administrators will find it very
difficult to balance a budget, without first- and second-year students.
·
We can recruit more international
students, more adult learners, and (for publics) more out-of-state
students. I doubt that this will be an
adequate solution, because institutions either won’t adapt their services to
these audiences, losing out to more student-centered competitors, or they will
find that the cost of support is excessive, given the continuing needs of their
traditional audience.
·
Virtually all institutions will expand
online offerings, and that could attract new enrollment. However, the most successful online programs
will be highly scalable and offered at attractive prices. Over a few years, enrollment will tend to
consolidate at some institutions and move away from others. Quality student services will be key.
This isn’t prophecy. It is the obvious conclusion from watching
trends across the country, combined with my belief that we are in a disruptive
environment, not simply a challenging phase in a funding cycle. For those of us who genuinely care about
access and opportunity, the end result may be exciting, creative, and
encouraging. To be sure, the effects of
change will be different in different sectors of higher education.