Our Lost Colleges
Amid rising public doubt about the continued accessibility of US post-secondary institutions, university leaders need to think differently about how they operate. Until that happens, our colleges will remain lost in a fog of cultural skepticism about higher education. Here are questions every institution’s leaders need to be asking. A friend’s daughter applied to 10 universities last year. All of the institutions offered admission. But financial aid packages were a different matter. One top-ranked state university sent her an offer with this punch line: your net tuition for this year is 0. Wonderful, but the breakdown included $2,500 for work study and a $59,000 loan requirement. In other words, she would have nearly free tuition, room and board, while in school, but after graduation a $236,000 student loan debt would become due. How could an admissions officer craft such an insensitive and misleading financial aid letter? William Bennett claimed to know the answer. In 1987, as Secretary of Education he wrote a combative NY Times op-ed titled “Our Greedy Colleges.” He argued that higher education has no incentive for operating efficiently because government guaranteed loans cover escalating tuition prices. His contention became known as the “Bennett Hypothesis.” Thirty years later, […]