The Skyrocketing Cost of Higher Education: A Perfect Storm
The Rise of the Modern University: A Story of Exponential Growth and Unchecked Expenses
For decades, US high school students have been conditioned to believe that a four-year degree is the key to unlocking success. But as the cost of higher education continues to skyrocket, many are beginning to question the true value of this investment.
The history of American colleges dates back to the 17th century, but it wasn't until the 1980s that enrollment became more mainstream. As blue-collar jobs disappeared and the promise of high salaries enticed young people, attending college became a desirable goal. However, the credentials required for entry-level positions in today's job market have only become more expensive.
From 1963 to 2021, the average total cost of a four-year institution shot up by an astonishing 155%, according to the National Center for Education Statistics. The current sticker price for tuition, fees, housing, and food at a four-year college is on average $24,030 a year for in-state students at a public university and $56,190 at a private, nonprofit university, according to the most recent data from College Board.
But what lies behind this explosion of costs? Is it demand? Inflation? Decreased state funding? Schools scrambling to stay competitive and fill campuses with hot new amenities and administrators to manage and market them? Or is it simply the perfect storm of budget shortfalls created by declining enrollment numbers since 2010?
The Perfect Storm: A Recipe for Disaster
The pandemic has only accelerated this trend, with most four-year institutions still struggling to recover. In fact, many likely won't rebound at all. The infamous 'enrollment cliff' is looming large, as higher-ed experts have been warning about the decline in high school graduates since the Great Recession of 2008.
With birth rates dropping and never really picking back up again, colleges are facing a daunting task: courting new prospects who don't exist. The number of high school grads is expected to peak within the next two years, leaving many institutions with limited options.
A Bleak Future for Many Colleges
As the highly competitive Ivies and other universities with massive endowments will likely weather this storm unscathed, smaller liberal arts colleges are already cutting programs or disappearing altogether. Even high-profile schools aren't completely safe, as evidenced by West Virginia University's decision to cut 143 faculty members, 10 undergraduate academic programs, and 18 graduate programs in September.
The writing is on the wall: many colleges will struggle to survive this perfect storm of budget shortfalls, declining enrollment numbers, and unchecked expenses. It's time for institutions to rethink their priorities and adapt to a changing landscape, or risk being left behind.
The Bottom Line: A Higher Education System in Crisis
As we look ahead to the future, it's clear that something needs to change. With costs spiraling out of control and enrollment numbers plummeting, the modern university is facing an existential crisis. Will institutions be able to adapt and evolve, or will they succumb to the pressures of a rapidly changing world?
The clock is ticking.