This fascinating article about the fiscal crisis at experimental Hampshire College in Amherst, Massachusetts, suggests that all except the best-funded colleges are in danger of collapsing. The first risk is the coming contraction of the college-age population, which will decline by 280,000 by 2026. Second, the author suggests, the business model that colleges rely on threatens their future, with full-paying students subsidizing those who can’t afford to pay tuition.
Underlying these arguments is the fact that the cost of higher education has spiraled out of control. It’s hard to remember that there was a time when most community colleges were tuition-free because states and cities wanted to invest in the education of their citizens.
There are also decisions that colleges have made that strain their budgets, such as inflated administrative salaries and pouring millions into facilities instead of faculty salaries and scholarships. And the decision to shift from tenure track faculty to adjuncts has been a false saving, in my view.
Hampshire College is different. It was created specifically to enroll a diverse student body and to have a pedagogy that scorns grades and requirements and majors. But it is in deep trouble, financially. Last September it enrolled a freshman class of only 13. One has already left.
Poll most top educators about their ideal kind of learning for the 21st century, and they’ll probably sound a lot like a Hampshire student. The virtues of open-ended thinking and project-based learning will be familiar to any Washington parent who has toured a bougie preschool. But thanks to a slow recovery from the 2008 recession, rising student debt and class anxiety, parents and students are looking at college less as an intellectual experience and more as an insurance policy — and that calls for colleges that offer proven outcomes, measurable skills or exceptional prestige.
All this means that private colleges like Hampshire are struggling to find enough students able or willing to pay their high sticker prices, and the situation is only likely to get worse. Because of low birthrates following the Great Recession, Carleton College economist Nathan Grawe predicts that the four-year-college applicant pool is likely to shrink by almost 280,000 per class, over four years, starting in 2026, a year known in higher ed as “the Apocalypse.” As youth populations decline everywhere but the southern and western United States, colleges in New England and the Midwest will find it increasingly hard to lure students, particularly those able to pay.
The problem is the business model. Colleges have long counted on wealthy students to subsidize the cost of education for those who can’t afford it. But for many institutions, that is becoming untenable. With only a $52 million endowment, Hampshire is especiall vulnerable to this reality, but enrollment experts say it will affect many schools outside the most elite. Schools like Harvard, Princeton, Yale and MIT will be fine, says Jon Boeckenstedt, Oregon State University’s vice provost of enrollment management. “It’s those colleges in the middle of the curve, with good, solid, well-known reputations but not spectacular financial resources or academic reputation, that are feeling the pinch,” he explains.
Film-maker Ken Burns, a graduate of Hampshire, heads a group trying to raise $100 million. A new President is rallying supporters. But the future is uncertain.
If the economic troubles of elite liberal arts institutions have you mock-playing an air violin, consider the consequences. For one, there’ll be fiercer competition for spots at the most prestigious schools — a sport already so gruesome, actress Felicity Huffman is doing jail time for gaming it. For another, there will be fewer opportunities for low-income students who rely on generous financial aid packages at small liberal arts colleges as one of the few tickets into the upper class. It may also mean the retreat of the only part of higher education that is uniquely American. Residential liberal arts colleges are rare in other parts of the world. For more than 200 years, they’ve made American higher education an exceptional laboratory for fostering empathy, creativity and innovation. We’ve gotten so used to them, we may not notice what we’ve lost until it’s gone.

Where is Bill Gates’ money when you need it (not him). CBK
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Results from a recent survey: “More than half of Americans ages 13 through 29 do see college as a path to economic success, but about 4 in 10 believe a bachelor’s degree prepares people only somewhat well, or even poorly, for today’s economy.”….
“And more than any type of degree, 73% of young Americans said they think job experience is good preparation for success. Their esteem for practical experience is shared by the Trump administration, which has pushed to expand apprenticeship programs, and experts say it reflects today’s economy, in which more employers require internships or other work experience.”
There are more results from this recent survey, but there is no doubt the cost of college, especially for a four-year degree program is providing a reason for youngsters to consider alternatives, including associate degrees (two years), certificate programs (some of these online), and military service. https://www.usatoday.com/story/news/education/2019/11/12/high-school-diploma-vs-college-degree-what-young-americans-value/2573037001/
As I have mentioned more than once, Elisabeth Warren is a co-sponsor of S.800, a bill that will hold colleges/universities responsible for the economic outcomes of their graduates. If passed, this bill is sure to reduce enrollments in liberal arts programs and many social services including education. .
Senate Bill 800, called the College Transparency Act, is publicized as if it will address the student loan crisis. It does not, but it will function as a tool for students/parents to opt out of postsecondary education programs based on data about the economic value of their intended degree or credential. Current information about earnings show that a liberal arts degree offers job flexibility and for many, increments in income over time,. There is also evidence that degrees in education, human services, and the arts are among the lowest over time.
Senate Bill 800 will “permit consistent reporting of the following categories of data for all postsecondary students: “(i) Enrollment, retention, transfer, and completion outcomes for all postsecondary students. “(ii) Financial indicators for postsecondary students receiving Federal grants and loans, including grant and loan aid by source, cumulative student debt, loan repayment status, and repayment plan. “(iii) Post-completion outcomes for all postsecondary students, including earnings, employment, and further education, by program of study and credential level and as measured—immediately after leaving postsecondary education; and at time intervals appropriate to the credential sought and earned.”
S. 800 also provides for this information to be made ““publicly available through a user-friendly consumer information website and analytic tool that— “(i) provides appropriate mechanisms for users to customize and filter information by institutional and student characteristics; “(ii) allows users to build summary aggregate reports of information, including reports that allow comparisons across multiple institutions and programs…” and more.
Senate bill 800 also puts the current Commissioner of the National Center for Education Statistics (NCES) in charge of this unprecedented program of data-gathering about post-secondary programs
Although the bill does not permit The Commissioner to use the data to rate programs in the manner of U.S. News and World Report, the information is in the public domain and it is gathered in a manner that allows The Commissioner to sweep up personally identifiable data (PII) on outcomes for individual students, and through “Data Sharing Agreements” with:
–the Internal Revenue Service, in order to calculate aggregate program- and institution-level earnings of postsecondary students.
–the Secretary of Defense, in order to assess the use of postsecondary educational benefits and the outcomes of servicemembers.
–the Secretary of Veterans Affairs, in order to assess the use of postsecondary educational benefits and outcomes of veterans.
–the Director of the Census Bureau, in order to assess the occupational and earnings outcomes of former postsecondary education students.
— the Chief Operating Officer of the Office of Federal Student Aid, in order to analyze the use of postsecondary educational benefits provided under this Act.
I understand that the cost of education beyond high school has become a huge issue, but I also think that this bill does nothing other than invite students to look at their education ONLY in terms of a potential “return on investment.” Those calculations will be aided by unprecedented data gathering on outcomes for individual students in specific programs with dubious assurances that the privacy of this information will be protected.
If Senate Bill 800 is enacted, it seem likely that enrollments in liberal arts programs and specific programs in the arts, humanities, and social services will be reduced beyond a point of being sustainable. If S.800 is enacted and works as intended Congress will have affirmed a policy that says: The dollar worth of education is all that does and should matter.
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Since we have been graduating a generation of students raised on rigid standards, I have a feeling that there are fewer students who are prepared to direct their own learning. I don’t know how Hampshire has changed over the past fifty years, but at its inception it drew a population of students ready and willing to design their own courses of study. I admired that spirit even though the thought of directing my own learning to that extent scared the bejesus out of me. I would hate to see them disappear. Being in the rich environment of five area institutions of higher education provided the perfect venue for a school like Hampshire to flourish. The cooperation among schools provided a wealth of opportunities for students attending any one of the five schools. I hope they are still cooperating as they were fifty years ago.
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It is tragic, and is related to the disinvestment in public ed.
Not surprised Ken Burns went there. Counting Jimmy, I know 3 young people who went to Hampshire. They are all thoughtful, creative types. Ideal students, in fact.
Cindy
Sent from my iPhone
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