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College tuition up....again.....

Rising enrollment, inflation, and decreasing state dollars (much of that going towards other education)

Higher Education Funding in Ohio:
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Primary/Secondary Funding in Ohio:
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In testimony before the Ohio Senate Education Committee in 2005, the point was made that state funding for higher education had dropped about $1,600 per student and tuitions had increased $1,300 over the previous four years.

All of us as higher education leaders are painfully aware that funding for higher education has decreased significantly over the last five years. And, during this same period, we have seen inflation levels rise by approximately 15 percent, while enrollments have increased by approximately 17 percent across the state. In spite of internal cuts, reallocations, productivity and efficiency efforts, and other efforts to control spending and raise revenue, it has become increasingly difficult to provide quality academic programs and services to our students.

As I noted above, over the last five years Ohio’s colleges and universities have increased their student enrollment by approximately 17 percent, and during this period state funding has decreased significantly. As a result of reductions in funding, we now have approximately 50,000 students who have been admitted to Ohio’s colleges and universities over the last five years with no corresponding state support. If we stop and think about this, the implications of these numbers are staggering: 50,000 unfunded students would be approximately the size of the student body at The Ohio State University. During the last five years, across the state of Ohio, these figures indicate that we have been providing academic programs and services—without funding—to the equivalent of the number of students enrolled at OSU.
 
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As a parent of two children both in private colleges (Northwestern and another in the same price range), I'll state that I'm grateful that the more expensive institutions offer greater finanicial aid than state schools.
 
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The building boom on most campuses doesn't help (kind of like an arms race). The lower amount of state funding doesn't help. I don't know if alumni donations are keeping pace with previous years or not, something to look into.

Here's my theory (part joke, part true). Higher education "raises the stated rates" across the board. They in turn give more grants, scholarships, and other aid to bring the price down for those they want (whether it is for good grades, lack of wealth/income of the student/family, the desire to have a diverse student body, or a recruiting tool for any other reason). The total paid by the student receiving the aid is similar to years past, and the rest of the students pay for the difference that the state's had paid in the past.

Funny story regarding one of tOSU's grad programs... ALL students from outside the state of Ohio received a "scholarship" for the first year. Some were full rides, others were 1/2. The reason was out of state students pay more, so the scholarship helps to neutralize the added cost... another reason is for recruiting (the idea of receiving a scholarship seems to get folks excited, even if all the scholarship does is decrease the cost to equal their instate school). The admin's also claim they make it back the second year when all the out-of-staters are charged full price. The students also tend to go back "home" so more tOSU grads get sprinkled throughout the U.S. and this can help in the "exposure" category.
 
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jimotis4heisman;642428; said:
universities are out of control? but its a free market. if you dont want to "invest" in your future learn a trade, open a business etc. you of all nyb should realize this...

jo4h -

Unfortunately - it is not quite as simple as you try to make it. For starters, education, like health care, is an extremely inelastic good, which means changes in price do not markedly effect changes in demand. Further, despite the many colleges across our country, demographics and academic reputation generally make colleges behave as oligopolies (the Ivy League, etc.). These two issues taken together give universities enormous amounts of pricing power, power that I believe is abused at least in part for the reasons that I cite above.
 
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The study released today was the perfect reason college should be more affordable. College grads make $23K more a year than those with just high school degrees. Just from a selfish standpoint these people will make more, consume more and pay more in taxes. The multiplier effect of this additional income is huge on our national economy.
 
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I am in the process of completing my M.A. in Higher Education Administration at Wright State, and this quarter, one of my classes is Budget & Finance in HE. I am by no means an expert on this subject, but I've heard from plenty of experts and I think I am developing a working knowledge.

For starters, the Consumer Price Index does not really apply to the sticker price of a college education. That is because higher education is subsidized by local and state government and the federal government at public institutions, and at all institutions there is money derived from endowments. When it comes to college education, cost does not equal price.

Nationwide, but especially in Ohio, support for our public institutions is on the wane. Somebody cited the fact that about 80% of the cost of a public university education used to be subsidized, while 20% was paid in tuition. It's not quite the revers now - it's probably about 35% subsidy and 65% tuition - but it's getting worse instead of getting better from a subsidy standpoint. That reason is by far the single biggest factor driving up the sticker price of a college education. This problem is especially acute in Ohio. I don't know the figures, but Ohio is comparatively weak in its financial support for higher education. I've seen this for myself firsthand. I could have attended the University of Kentucky or University of Tennessee back in 1999 as an out-of-state student for the same sticker price as I paid to attend Ohio State.

If you think tuition caps are a solution, think again. Say you cap tuition increases at 6% a year. If you have a year where you are getting enough support that you only have to increase 3%, but then get the rug pulled out from under you the next year, you're gonna wish that you had taken the opportunity for that extra 3% increase that you left on the table the year before. Institutions are pretty much forced to make the max increase from year to year to give themselves a safety net.

At private institutions - the price paid by students more closely reflects the true COST of a college education. Their sticker price usually increases at a rate consistent with area public institutions. If the increase at public insyitutions is largely due to decreases in subsidy - something that is not even a factor at private institutions - you're probably asking, "Why are private institutions increasing at the same high rate?" The answer is simple: Because they can.

Finally (for now) there was a comment about technology reducing cost over time. I'm not a technology expert (or a business expert for that matter) but I do know that universities - especially public research institutions like OSU, UC, and to a lesser extent, WSU - have to be on the cutting edge of technology to remain relevant, let alone competitive. I imagine that necessitates constant reinvestment and results in an overall higher cost for technology.
 
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thelantern

Trustees talk tuition rate revision
New tuition plan smallest increase in recent history

Alaina Busch

As the state budgeting process continues, Ohio State officials are contemplating tuition rates for next year.

At its monthly meeting Friday, the Ohio State Board of Trustees discussed the Ohio House of Representatives' recently released version of the state budget. The new plan proposes the smallest tuition increase in 21 years for resident undergraduate students.

Cont'd ...
 
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In Ohio State's case, I'd say that three factors have combined to push tuition up.

1) Lower state support. The state of Ohio's share of Ohio State's operating budget has gone from over a third in the early 80's to under 20% today. Consequently, more of the burden of running the university has to come from tuition.

2) Quality costs money. Ohio State has made huge strides in the last quarter century academically (not that it was bad before), and this takes money. You get what you pay for. You can't be Ohio State on a Bowling Green budget.

3) Supply and Demand. At the end of the day, Ohio State knows that they can raise tuition because the demand for their product is there and growing every year as evidenced by the almost 50% increase in applications this year.
 
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tibor75;834422; said:
Because students today are spoiled brats. They won't go to a school unless the workout facilities are top notch, the meals are warm and good, the dorm rooms are big, and the campus is 100% safe.

Right...because a "normal" student actually wants shitty facilities, crowded dorm rooms, cold nasty food, and dangerous campuses for their money. :roll1:
 
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Ohio State has been strongly supportive of Strickland/Fingerhut plan to stabilize tuition in exchange for increased state support.

http://www.osu.edu/news/newsitem1701

My guess is that, even though it will cost Ohio State 8 million net, the university has alot of important higher education matters that they will expect Strickland/Fingerhut to support in exchange for their leadership on this issue.
 
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MililaniBuckeye;834429; said:
Right...because a "normal" student actually wants shitty facilities, crowded dorm rooms, cold nasty food, and [strike]dangerous campuses[/strike] for their money. :roll1:
Ah, memories of those golden undergrad years on campus.

The dorms were rumored to be modeled on a prison. A Swedish women's prison to be precise. Sadly horny blonde female of Nordic lineage were in short supply - unlike the cold and nasty food or cramped quarters.

I never thought of the campus as dangerous per se, but it was a different time and place.
 
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