"We may be getting to the point where there will have to be some basic change to the model." President Mark Yudov, University of California, in New York Times interview, November 3, 2008.
NineShift predicts 2009 is the year that people realize that the higher education model is broke. Tell us your thoughts.
Point 1. The income model is all broke.
Endowments have been skyrocketing (will resume skyrocketing after the recession). Endowments last year were $300 billion. Total student/past loans were $150 billion. Meaning colleges could pay off the student loans for everyone in the whole country.
Student tuition keeps rising as a percentage of income. While colleges pocket money in endowments and buildings, they make students pay more than they can afford. If the price of milk rose like college costs over the last 30 years, a gallon of milk would cost $15.
We need double the number of students in college to fill the skilled worker jobs society has available. To do that, we need to lower the tuition.
Colleges get richer, students get poorer. Good sign: students are now resisting higher tuition and refusing to pay, choosing lower cost colleges. Yeah students!
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