Monday, June 9, 2014

Colleges are Full of It: Behind the Three-decade Scheme to Raise Tuition, Bankrupt Generations, and Hypnotize the Media

The price of a year at college has increased by more than 1,200 percent over the last 30 years, far outpacing any other price the government tracks: food, housing, cars, gasoline, TVs, you name it. Tuition has increased at a rate double that of medical care, usually considered the most expensive of human necessities. It has outstripped any reasonable expectation people might have had for investments over the period. And, as we all know, it has crushed a generation of college grads with debt. Today, thanks to those enormous tuition prices, young Americans routinely start adult life with a burden unknown to any previous cohort and whose ruinous effects we can only guess at.

On the assumption that anyone in that generation still has a taste for irony, I offer the following quotation on the subject, drawn from one of the earliest news stories about the problem of soaring tuition. The newspaper was the Washington Post; the speaker was an assistant dean at a college that had just announced a tuition hike of 19 percent; and the question before him was how much farther tuition increases could go. “Maybe all of a sudden this bubble is going to burst,” he was quoted as saying. “How much will the public take?”

Oh, we would take quite a lot, as it happened. It was 1981 when the assistant dean worried in that manner—the very first year of what was once called the “tuition spiral,” when higher ed prices got the attention of the media by outpacing inflation by a factor of two or three. There was something shocking about this development; tuition hadn’t gone up like that during the 1970s, even though that was the heyday of ascending consumer prices.

Yet at that point, the tuition spiral had more than three decades to go—indeed, it is still twisting upward today. But the way we talk about this slow-motion disaster has changed little over the years. Ever since the spiral began, commentators have been marveling at how far it’s gone and wondering how much farther it has yet to run—“the trend can’t continue,” they say every few years. They ask when the families and politicians of America are finally going to get off their knees and do something about it.

But somehow nothing ever gets done. The trend does continue. And for 30 years the journalists who cover the subject have followed the same pointless script. They have hunted fruitlessly for the legitimate expense that they knew must be driving up the prices. They have chased repeatedly after the wrong answers, blaming everybody and everything except for the obvious culprits. They have related to us the politicians’ plans for bringing the spiral to a stop—plans that everyone can see have virtually no chance of succeeding.

And all along, the larger meaning of the spiral is almost never discussed, as though it were contrary to some unwritten rule of journalistic cognition. (...)

A low point of sorts was reached in the late 1990s, when Congress appointed a “National Commission on the Cost of Higher Education,” and filled it with university presidents and the head of one of the main higher-ed lobby groups. The report they proceeded to publish in 1998 was an entirely predictable outcome of this staffing decision, I suppose, but still the reader is struck by its resounding impotence. This panel was so pallid it didn’t even amount to a whitewash. On page one of its report, for example, the Commission declared that it wasn’t really interested in soaring tuition at all, except insofar as soaring tuitions might cause Americans to feel “ill will” toward universities. After going on to catalog the usual culprits—blame regulations, blame students—the Commission concluded that there should be—yes!—further study on the matter. (“The Commission recommends that the philanthropic community, research institutes, and agencies of state and local government adopt the topic of academic cost control as a research area worthy of major financial support.”) They also recommended that universities do a better PR job, that they organize themselves to “inform the public” about “the returns on this investment.”

But even that would probably be considered an outrage were it published today. Last year, the Obama administration announced its own “Plan to Make College More Affordable”; the centerpiece was a scheme for doing something analogous to what that Commission proposed back in 1998: building a rating system to inform the public about the returns on college investments. (There was also the obligatory olive branch to the right, in a proposal to “reduce regulatory barriers.”)

The universities responded by going absolutely apeshit. They are happy to talk about the “return on investment” when it’s a vague promise of a million bucks for anyone who pays up and goes to college; when someone actually takes them at their word and tries to measure the claim, it seems that fundamental principles are being trampled.

I hope Obama ignores the wailing of the universities and goes through with his plan, despite the obvious folly of trying to explain people’s relative prosperity by reference to the college they attended instead of their class background. If the president were to expand his approach to include data on the vast and growing size of university administrations and how many courses are taught at each college by adjuncts, his rating system might well be useful.

But there should be no illusions. More information by itself is not going to stop the tuition spiral, not after 33 years. In fact, we can predict fairly easily how this thing will backfire once the government discovers and announces the precise “return on investment” for each institution of higher learning: Like any rational, profit-maximizing entity those institutions will simply continue hiking tuitions in order to capture a larger chunk of that return for themselves.

As the reforms fail and the journalism fails maybe we will figure out that all along there has been a single bad ideological idea behind all of this failure: The notion that the market will solve the problem if we only adjust the controls a little. And as the newspapers of 2020 tell us about an angry new generation of students shouldering an unimaginable debt burden, maybe it will dawn on Barack Obama, by then retired and relaxing on the beach in Hawaii, that maybe we shouldn’t have thought of education as a market in the first place. Maybe college shouldn’t be about individuals getting rich. Maybe there is another purpose.

by Thomas Frank, Salon |  Read more:
Image: Rodney Dangerfield in "Back to School"