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All Posts for The President's Blog

Down the Up Staircase

March 25th, 2013 by dfarish

When we tire from worrying about North Korea, Iran, fiscal cliffs and sequestering, we can sit back and luxuriate in the knowledge that our institutions of higher education are still doing their job of opening the door of opportunity to permit successive generations of students to achieve both educational and economic advancement. Regardless of the circumstances of their birth, or of the wealth of their families, talented and ambitious students rest secure in the knowledge that their efforts will be recognized and rewarded by top colleges and universities. Because of their enormous endowments, these institutions now more than ever have the capacity to be need-blind in the admissions process, meaning that students will be admitted without regard to their ability to pay.

Oops! Maybe it’s time to go back to thinking about nuclear weapons and cliffs. Several of the wealthiest campuses have recently announced that they are reducing their aid packages for needy students and are no longer offering need-blind admission.

The Debt Problem – Part I

March 11th, 2013 by dfarish

In his column in The New York Times on March 9, Charles M. Blow states: “We are reaching a crisis point in this country’s higher education system” because of “staggering levels of debt.” He notes that student loan debt has more than doubled in the last eight years, to almost $1 trillion, and that, not unexpectedly, student loan debt is hardest on families in the bottom quintile of family income. Mr. Blow ends his column with, “We are on an unsustainable track. This will not end well.”

How is it that this problem has become so large so quickly? How do we fix it? Is this as big a problem as people claim?

I’m glad you asked. This is a problem that resulted from many intersecting forces:

The Folly of Early Action

February 11th, 2013 by dfarish

Some years ago, a few of the most prestigious colleges and universities adopted a new model for admitting students. Rather than facing a delay of several months after making application before hearing the university’s decision, a prospective student could choose to apply for “early decision.” The very best applicants would learn much earlier in the admissions cycle that they had been accepted – but the catch was that they then had to commit to attend the university that had accepted them. No longer could they wait and compare offers from other institutions. “Early decision” cut both ways: in return for an early answer, the student was obliged to make an irreversible commitment.

Moody’s Blues

February 4th, 2013 by dfarish

On the 16th of January, Moody’s Investors Service issued a report entitled “US Higher Education Outlook Negative in 2013.” Inside Higher Ed followed with an article on the findings in the report the next day. The report, and the article, were sobering reading for university administrators, and, in some quarters, more than a little frightening.

Too Rich To Be Generous?

December 17th, 2012 by dfarish

In the last few months, a number of the wealthiest colleges and universities in the country have been reconsidering the level of their financial aid. Paradoxically, their intent is not to increase their financial aid, but to reduce it. How do we reconcile societal concerns regarding the rising costs of higher education (and the corresponding rise in student debt) with the decision by wealthy colleges to spend less on student aid? What is going on?

Let’s turn the clock back about 30 years. In the early 1980s, there were, by today’s standards, only a handful of wealthy colleges and universities. Top-tier universities such as Duke and Brown had endowments of less than $150 million. Even at Harvard, endowment drawdown and annual giving contributed only a minor portion of the annual operating budget. And yet, as a fraction of median family income, the cost of college then was significantly more affordable than it is today.