25 Ways to Reduce the Cost of College - ERIC

25 Ways to Reduce the Cost of College

Center for College Affordability and Productivity

A Policy Paper from the Center for College Affordability and Productivity

September 2010

About the Authors

This study is the result of a collaborative effort among the staff of the Center for College Affordability and Productivity. Authors include:

Richard Vedder, Andrew Gillen, Daniel Bennett, Matthew Denhart, Jonathan Robe, Todd Holbrook, Peter Neiger, James Coleman, Jordan Templeton, Jonathan Leirer, Luke Myers, Ryan Brady, and Michael Malesick.

Acknowledgements

The Center for College Affordability and Productivity would like to thank Lumina Foundation for its generous support of this research.

Lumina Foundation for Education is an Indianapolis-based private foundation dedicated to expanding access to and success in education beyond high school. Through grants for research, innovation, communication and evaluations, as well as policy education and leadership development, Lumina Foundation addresses issues that affect access and educational attainment among all students, particularly underserved student groups, including adult learners. The Foundation bases its mission on the belief that postsecondary education remains one of the most beneficial investments that individuals can make in themselves and that society can make in its people. For more details on the Foundation, visit its Web site at .

The views expressed in this publication are those of the authors and do not necessarily represent those of Lumina Foundation for Education, its officers, or employees.

Center for College Affordability and Productivity

The Center for College Affordability and Productivity (CCAP) is an independent, nonprofit research center based in Washington, DC that is dedicated to researching public policy and economic issues relating to postsecondary education. CCAP aims to facilitate a broader dialogue that challenges conventional thinking about costs, efficiency and innovation in postsecondary education in the United States.

1150 17th Street NW #910 Washington, DC 22036

Tel: (202) 375-7831 Fax: (202) 375-7821 collegeaffordability.

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Table of Contents

Section One: Use Lower Cost Alternatives ............................................................. 1

#1: Encourage More Students to Attend Community College................................................................ 1 #2: Promote Dual Enrollment Programs.................................................................................................. 7 #3: Reform Academic Employment Policies.......................................................................................... 11 #4: Offer three year Bachelor's Degrees ............................................................................................... 26 #5: Outsource More Services ................................................................................................................. 31

Section Two: Use Fewer Resources...................................................................... 43

#6: Reduce Administrative Staff ............................................................................................................ 43 #7: Cut Unnecessary Programs .............................................................................................................. 57 #8: End the "Athletics Arms Race" ........................................................................................................ 66 #9: Overhaul the FAFSA ......................................................................................................................... 77 #10: Eliminate Excessive Academic Research ....................................................................................... 86 #11: Streamline Redundant Programs at the State Level ..................................................................... 93 #12: Promote collaborative purchasing .............................................................................................. 105

Section Three: Efficiently Use Resources ........................................................... 109

#13: Improve Facility Utilization .......................................................................................................... 109 #14: Increase Teaching Loads .............................................................................................................. 116 #15: Encourage Timely Degree Completion ........................................................................................ 125

Section Four: Exploit Technology to Reduce Costs ............................................. 131

#16: Move More Classes Online .......................................................................................................... 131 #17: Reduce the Cost of Textbooks ..................................................................................................... 141 #18: Digitize Academic Libraries .......................................................................................................... 150 #19: Outsource Email Services ............................................................................................................. 157 #20: Utilize Course Management Tools............................................................................................... 161

Section Five: Improve Competition .................................................................... 171

#21: Ease the Transfer Process among Public Institutions ................................................................. 171 #22: Reform Financial Aid .................................................................................................................... 182 #23: Reform Accreditation to Reduce Barriers to Entry ..................................................................... 194

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#24: Subsidize Students, not Schools .................................................................................................. 206 #25: Promote Competition Based on Value, Not Reputation............................................................. 220

Figures

Figure 1.1: Public Institution Enrollment Trends: Two-year vs. Four-year...............................................2 Figure 1.2: Public Institution Tuition and Fee Trends: Two-year and Four-year......................................3 Figure 3.1: Percent of Full-Time Faculty Not Tenured & Not on Tenure-Track......................................12 Figure 3.2: Percent of New Hire Full-Time Faculty w/o Tenure & Not on Tenure-Track........................13 Figure 3.3: Ratio of Part-Time to Full-Time Faculty.................................................................................14 Figure 6.1: Job Growth by Position & Status: 1987 to 2007....................................................................45 Figure 6.2: Employee Projection at 4-Year Public & 4-Year Private Not-for-Profit Colleges .................46 Figure 6.3: FTE Administrative Employees Per 100 FTE Students...........................................................47 Figure 8.1: Real Growth in Generated Revenue vs. Expenses (medians): 2004-2006............................67 Figure 8.2: Real Growth in Median Allocated Revenue: 2004-2006.......................................................67 Figure 8.3: Median Athletic Expenses by Category of Expenditure, FBS Institutions, 2006...................69 Figure 10.1: Research Spending at Colleges and Universities.................................................................88 Figure 11.1: Operating Expenses Percent Breakdown by Category, Public 4-Year College and Universities, 2008.....................................................................................................................................95 Figure 15.1: Time Between Post-Secondary Entry and Degree Completion.........................................125 Figure 19.1: Estimated User Cost Per Month by Expense Category......................................................158 Figure 24.1 Revenue Sources of Public Colleges: 2005-06 (in Billions of Dollars)................................207

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Tables

Table 3.1: Average Faculty Compensation at Select Engineering Schools (2007)..................................23 Table 5.1: Percentage of Colleges Using Privatized Services, 2001........................................................39 Table 6.1: Total & FTE Staff in Degree-Granting Institutions, by Occupation; All Institutions..............44 Table 6.2: Percentage Change in Staffing at Degree-Granting Institutions, by Occupation; All Institutions...............................................................................................................................................44 Table 6.3: E&R Spending by Sector and Educational Category (in 2006 Dollars)...................................49 Table 6.4: Earnings Level of Administrative Staff, by Institutional Type (#Schools), Fall 2007.............49 Table 6.5: Typical Administrative Worker Salary by Functional Category and Type of Institution, 2008-09.....................................................................................................................................................51 Table 6.6: Estimated Savings from a 5% Reduction in Administrative Staff..........................................52 Table 10.1 Time Actually Spent On Research Versus Time Preferred On Research...............................87 Table 11.1: Average Total Instructional Expenses by Sub-category, Public 4-Year Colleges and Universities, 2008.....................................................................................................................................95 Table 14.1 Mean Course Loads By Year.................................................................................................117 Table 17.1: Percent of Courses Using Electronic Books in 2008, by Institution Type...........................145 Table 18.1: Academic Library Expenditures by Function, 1996 & 2006 (Constant 2006 Dollars)........151 Table 20.1: Percent of Institutions with Single Product Standard LMS, 2008......................................163 Table 20.2: Percent of Courses Using LMS, by Institution Type............................................................163 Table 21.1: States with State-Wide Transfer and Articulation Policies (2005).............................175-176 Table 21.2: Retention and Graduation Rates for North Carolina Transfer Students...........................177

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