The College Cost v. Quality Conundrum

Forbes: "It turns out the cost of a college does not predict higher alumni ratings about the quality of their education," according to a study published in The Journal of Consumer Affairs. "In fact, the opposite is true: total cost of attendance predicts lower ratings ... The good news is there are a lot of high quality, affordably priced higher education options out there. As a consumer, it may not be very easy to discern which colleges and universities represent this value – but students and parents will surely get wiser in figuring it out."

"Extensive research about the drivers of quality in higher education point to “how you do college” more so than “where you go” – and include critical experiences such as feeling the professors cared about you as a person, having a mentor who encouraged your goals and dreams, being able to apply what you’re learning to an internship or job and working on a long-term project. Students and parents should look for colleges and universities where relationship-rich and work-integrated education is a strong and highly visible part of the culture."

"This research does not suggest that every higher priced college suffers from lower alumni ratings. There are certainly examples of more expensive institutions that deliver a high quality experience with highly satisfied alumni. But they’re more of an exception than the norm ... No one needs to get worked up over trying to stretch their finances and plunge deeper into debt to reach for that pricier college just because we have always believed it is better."

Puzzler: Admit & Enrollment Both Shrink

CBS News: "The number of enrolled college students slipped 1.3% this fall compared with a year earlier, representing a loss of 231,000 students, according to a survey from the National Student Clearinghouse Research Center, a nonprofit educational research group. For the first time in a decade, the number of college students slipped below 18 million, dipping to 17.9 million students, it said. It may appear like a contradiction to find lower acceptance rates at many colleges given a shrinking pool of potential customers."

"Yet Ivy League colleges and other top universities are aggressively marketing themselves to both national and international top students, creating an increasingly competitive admissions process. And the cachet of receiving a degree from an Ivy League school also comes with bigger lifetime earnings, sparking more competition for those few coveted spots. Less prestigious institutions, on the other hand, are sometimes struggling to attract qualified students, leading to college closures such as Green Mountain College in Vermont. In fact, about 25% of U.S. colleges will likely fail in the next two decades, Michael Horn, who studies education at Harvard University, told CBS News earlier this year."

"So what accounts for lower college enrollment? Demographic changes. The number of high school graduates is stagnating, with overall graduation rates expected to drop in the next decade, according to the Western Interstate Commission for Higher Education. The rising cost of college. The price for a private, four-year college is about $41,000 per year, or about double the cost in the mid-1980s, according to the U.S. Department of Education. That's far outpaced typical household income growth. A growing economy. Some high school students may be deferring or opting against college due to the low unemployment rate and the availability of jobs."

College Costs: Still Less Than the Benefits

CNBC: "During the 1978 - 1979 school year, it cost the modern equivalent of $17,680 per year to attend a private college and $8,250 per year to attend a public college. By the 2008 - 2009 school year those costs had grown to $38,720 at private colleges and $16,460 at public colleges. Today, those costs are closer to $48,510 and $21,370, respectively. That means costs increased by roughly 25.3% at private colleges and about 29.8% at public colleges. Still, earning a college degree remains a strong investment."

"In 2018, college graduates earned weekly wages that were 80% higher than those of high school graduates. The Bureau of Labor Statistics reports that Americans with a bachelor’s degree have median weekly earnings of $1,173, compared to just $712 a week for those who have a high school diploma."

"Lackluster state funding is a major reason for rising college costs. From 2008 to 2018, the average tuition at four-year public colleges increased in all 50 states. On average, tuition at these schools has increased by 37%, and net costs (including factors like scholarships and grants) have increased by 24%, according to a 2019 report from the Center on Budget and Policy Priorities ... A typical trope is that colleges today spend exorbitantly on frivolous luxuries such as climbing walls, hot tubs and lazy rivers for students. This kind of spending is rare."