Unit 3: The College Board: Trends in College Pricing

When many of us think of The College Board, the image of college admissions and assessment usually comes to mind. This organization, however, can also be considered an opinion leader in higher education finance. The College Board is a non-profit organization whose agenda is to provide information that connects potential students to college success and opportunity (The College Board, 2009). College bound high school seniors, for example, look to The College Board for information on the various aspects of going to college including the costs. Potential college students consider the College Board to be an opinion leader. This organization also provides data and other reference information that is useful to those who work in many aspects of higher education including finance - making it an opinion leader for them as well.

The College Board (2009) publishes an annual report Trends in College Pricing that provides "extensive data describing the variety of college prices in the U.S. and tracks those costs over time" (p. 4). The intended audience for this report are the consumers of higher education such as high school seniors (and their parents). Considering the country's current economic circumstances, however, the information offered in this report can be of particular interest for not only potential students but also college and university chief financial officers as well. The 2009-2010 issue of Trends in College Pricing, for example, provides insight into how colleges and universities are grappling with the recent economic pressures. The report includes published tuition prices for undergraduate education, net prices, and intuitions' non-tuition revenues just to name a few of the areas. The following are just a few snippets of the report that relates to our discussion on cost disease in higher education.

Tuition and fees at public four-year colleges and universities have risen at an annual rate of 4.9% per year beyond the general inflation rate from 1999-2000 to 2009-2010 (The College Board, 2009). In-state tuition and fees at public four-year institutions, for example, was reported to be 6.5% higher than in 2008-2009 while public two-year colleges' in-state tuition and fees was 7.3% higher than 2008-2009. Not-for-profit four-year institutions experienced a 4.4% increase while for-profit four-year colleges and universities had a 6.5% increase. Further, the "average published tuition and fees for public four-year colleges and universities in 2009-2010 ranged from $5,802 in the South to $9,391 in New England" (p. 10). The Middle States Region average rate for tuition and fees was reported to be $2,180. In addition to the increases in tuition and fees, state appropriations declined from 82.2 billion in 2007-2008 to 78.5 billion to in 2008-2009. This is a 12% drop from previous years. This type of information can help guide potential students as to what type of college or university and geographical area they can afford. College and university chief financial officers can also use this information in their comparative studies and in budget planning. That is, chief financial officers and other college administrators can use the trends mentioned in this report to predict what may occur in the next fiscal year and plan appropriately for it.

The report also included some interesting information on enrollment trends that can be useful to parents, students, and college administrators. According to the report, "the percentage of first time student undergraduate enrollment in public colleges and universities declined from 81% to 76% between 1990 and 2007" (p. 17). In contrast, first-time student enrollment in for-profit institutions grew from 2% in 1990 to 8% in 2007. Enrollment in non-profit institutions also grew "from 2% in 1990 to 10% in 2007" (p. 17). This type of information usually draws the attention of high school students and their parents. These individuals, for example, could see the enrollment trends presented in this report as a signal that there may be problems with public colleges and universities and consider enrolling in the for-profit or non-profit institutions. Chief financial officers and other administrators in postsecondary institutions can also use this type of information to determine the changes and trends in the consumer market. This information can then be used in making budget decisions and in strategic planning.

The College Board's Trends in College Pricing is an extensive and informative report. Even though the information offered in this report is designed to assist potential students as consumers of higher education, chief financial officers in colleges and universities can certainly benefit from this information as well. It provides trends and projections that can serve as a reference for institutions especially in planning and research. Finally, the College Board emphasizes researching and tracking data associated with enrollment and college costs. It is this experience that helps make the organization an opinion leader in higher education finance.

References

The College Board (2009). Trends in college pricing. Retrieved October 28, 2009 from http://www.trends-collegeboard.com/college_pricing/pdf/2009_Trends_College_Pricing.pdf

Unit 3: National Education Association (NEA)

Having been a teacher in the public school system, I was a member of the National Education Association (NEA). As a mater of fact, it was a required membership for the first year employees of the district where I was employed. From that time up until recently, I thought the NEA was an organization that simply protected k-12 school teachers and employees and had an influence in policy only in the K-12 sector of education. As it turns out, not only does the NEA have an influential voice in the K-12 sector but also in higher education.

By NEA's (2009) own admission, "We, the members of the National Education Association of the United States, are the voice of education professionals. Our work is fundamental to the nation, and we accept the profound trust placed in us." Therefore, NEA's agenda is to use its voice in higher education as an advocate for professionals within higher education. "Today, NEA is the largest college and university faculty and staff organization in the United States, representing more than 200,000 higher education employees in public as well as private institutions nationwide" (NEA, 2009). To further describe NEA's important role as an "opinion leader" in higher education finance: "On Capitol Hill, NEA lobbyists work effectively for increased financial support for higher education, including reauthorization of the Higher Education Act, the mainstay of higher education funding, and for increased funding for research. In addition, NEA lobbyists monitor legislation on issues such as tax reform, retirement, health care, intellectual property, distance education, internationalization, and other subjects that have a significant impact on all higher education personnel" (NEA, 2009).

The NEA newsletter, The NEA Higher Education Advocate, is published six times per year in newsletter format. It highlights trends, legislation, resource material, and local, state, and national news in post-secondary education. A "Special Salary Issue" of the newsletter was released this year. This issue highlighted that the average salary for faculty over a ten year period, 1996-2006, increased less than .5%. The Advocate stated that this trend is a replica of the changes in state and local appropriations. Reports like this one publicize the salary issues that are also a part of higher ed finance. Since NEA advocates for professional higher education employees, the salaries of these employees is just one of the financial aspects that this organization speaks on behalf of.

Recession salaries. (2009). NEA Higher Education Advocate. Retreived on October 28, 2009, from http://www.nea.org/assets/docs/HE_ADV_09_SpecialFull.pdf

Unit 3: The Department of Education: Postsecondary Institutions and Price of Attendance in the United States

Perhaps one of the most recognized opinion leader in higher education finance as well as other areas of education is the federal government. Through the Department of Education, programs such as the National Center for Educational Statistics (NCES) and the Integrated Postsecondary Education Systems (IPEDS) provides data and reports on the various areas of higher education free of charge to the public. The reports are generally presented in a straight forward and objective manner. The Department of Education's agenda is simply to provide the public and governmental agencies with information about the various areas of education. With this being said, a great deal of time and effort is placed on data collection and analysis thus making the Department of Education an opinion leader. Governmental agencies, for example, uses the data to determine if postsecondary and other areas of education are meeting regulations while the general public uses the information for research purposes and to obtain a snapshot of our educational system.

The Department of Education's Latest Report

The Department of Education's (2009) latest report Postsecondary Institutions and Price Attendance in the United States: Fall 2008, Degrees and Other Awards Conferred 2007-2008, and 12 Month Enrollment is directed towards federal and state governments as well as college and university administration including chief financial officers at Title IV institutions. This comprehensive report offers data obtained from Title IV institutions. The following are some highlights relevant to higher education finance and our class discussions.

During 2008-09, it was the private-for-profit institutions that reported the highest overall price of attendance for first-time undergraduate degree-seeking students living on campus. The average costs of attendance for private-for-profit institutions was $35,021. This is slightly higher than the not-for-profit private four-year institutions price of attendance for first-time undergraduate degree-seeking students living on campus which was $32,670. The lowest overall price of attendance was reported by public four-year institutions. The average cost of attendance for in-state, first-time, undergraduate students living on campus was $17,655 and for out-of-state students the cost was $26,219. This type of information provides chief financial officers with an overall national view of the price of attendance. Chief financial officers along with other college administrators, for example, could use this information to compare their costs with the national average.

On the non-financial side, the report provided some interesting data on enrollment in Title IV institutions. This is just a snippet of the non-financial information provided in the report. According to the report, "41 percent of four-year Title IV institutions offered a bachelor's degree or higher, 14 percent reported offering just a bachelor's degree, and 19 percent reported offering the associates as their highest degree" (p. 5). In addition, 4-year Title IV institutions "awarded 2 million degrees while 2-year institutions reported awarding almost 572, 000 degrees" (p. 5). State and federal appropriations are based on this type of data making the report of great interest to the federal government and of course to chief financial officers at colleges and universities.

Even though this posting only offers snippets of the Postsecondary Institutions and Price Attendance in the United States: Fall 2008, Degrees and Other Rewards 2007-2008, and 12-Month Enrollment report, it provides a comprehensive look at institutions that receive Title IV funds and would be a good read for those working in the field of higher education finance. The federal government can use the information presented in the report to determine if Title IV institutions are meeting guidelines.

Conclusion

It is felt that the Department of Education offers a valuable service to our society. The information given in this report along with others provide the public and the government with vital information about our entire educational system. The Department of Education employs professionals in the field of education many who have training and experience in higher education finance. With this being said, it stands to reason that the Department of Education can certainly be considered an opinion leader in higher education finance.

Reference

U.S. Department of Education (2009, October). Postsecondary institutions and price attendance in the United States: Fall 2008, degrees and other other awards conferred 2007-08 , and 12 month enrollment. Retrieved October 23, 2009 from http://nces.ed.gov/pubs2009/2009165.pdf

Unit 3: Council for Opportunity in Education

The Council for Opportunity in Education (COE), founded in 1981, is a non-profit organization that works to "further the expansion of educational opportunities" to low-income students. In conjunction with colleges and universities that host TRIO programs, the organization endeavors to help students overcome "class, social, academic, and cultural barriers" (COE, 2009). With accessibility being one of the key focuses of higher education today, COE serves as a major speaker for the needs of low-income students as well as a help to ensure that these students "enter college and graduate." Accessibility issues make COE a very prevalent voice. Because COE is an organization mostly interested in furthering the interests of low-income students, it values their needs. "As mandated by Congress, two-thirds of the students served must come from families with incomes under $33,000, where neither parent graduated from college. More than 2,800 TRIO Programs currently serve nearly one million low-income students" (COE, 2009).

COE publishes a Fair Share State Report that displays the "budgetary responsibility needed for the Council to operate based on the relative number of TRIO projects in an area" (COE, 2009). It shows all sources of income to COE for each state. These sources include membership fees, donations, and state appropriations which all help to make college possible for low-income students.

Because COE seeks to provide financial resources that could be the determining factor for getting and keeping low-income students, they have a voice in deciding which student services programs are worthy of funding. The types of programs that COE finances are another source of "free" money for students who suffer "class, social, academic, and cultural barriers" because of their income status. Some Student Support Services programs provide money for gas, babysitting, and other services that low income students cannot otherwise afford AND attend school. COE makes a way for this and even sponsors field trips for students to gain cultural exposure. The tutoring that assists students in learning can also be through Student Support Services by COE. While most other financial aid money can only be used for tuition, fees, and books, COE has the flexibility to pay for those "costs" that have to be covered in order for a low-income student to go to college and succeed.

The Council for Opportunity in Education (2009). Retrieved on October, 21, 2009, from http://www.coenet.us//ecm/AM/Template.cfm?Section=Home

Solutions for the Future

Solutions for Our Future is a national project to increase awareness of the impact that higher education has on society by preparing people to solve world problems and teaching the people that will change the world. Launched on 2006 the project is sponsored by the American Council on Education on behalf of public and private colleges, community and business partners and Campus Compact.

The main reason for launching the project was to impress upon the public the need to invest in human capital to meet the economic, social, and global challenges the country is facing. The project places at the forefront of its purpose investment in higher education. Funding reductions for higher education at both the state and federal level have forced increases in tuition and cuts in access at a time when American can ill afford to fall further behind other countries in education. Funding should be increased because higher education generates social and economic returns for the country. Students that earn bachelor’s degrees generally earn higher salaries, contribute more to the tax base, are less likely to be unemployed, in jail, or dependent on public assistance.

Three goals for the project are:

1. Not only increase the public’s awareness of the contributions of colleges and universities to our collective well-being, but to also see that that awareness is reflected in public discourse.
2. Increase support for higher education as a public policy priority.
3. Ensure that each campus is able to fully engage in doing its part to see that higher education meets the needs of our society.
   

References

Solutions for Our Future. (2006). Retrieved October 18, 2009, from http://tsp.convio.net/site/PageServer?pagename=about_us_r
http://www.solutionsforourfuture.org/site/DocServer/WaysToGetTheWordOut_2008.pdf?docID=921
http://www.solutionsforourfuture.org/site/PageServer?pagename=tk_facts
http://www.solutionsforourfuture.org/site/PageServer?pagename=tk_core_messages

Squeeze Play 2009

The National Center for Public Policy and Higher Education and Public Agenda have been tracking public attitudes toward higher education since 1993. This report, based on a survey conducted in late December 2008, repeats an early 2007 survey. The 2007 was conducted in healthy, robust economic times; the repeat survey was conducted when the country was in the midst of what appeared to be a prolonged economic recession.

Over the last eight years the percentage of Americans that feel that a college education is essential to moving into the middle-class has steadily increased from 31% in 2000 to 55% in 2008. During the same time the percentage of Americans that feel that qualified students have the opportunity to attend college has decreased from 45% in 2000 to 29% in 2008. An increasing number of Americans believe that college has become financially out-off-reach.

What are the implications? Americans taxpayers are becoming more and more concerned about the justification of educational costs. The study states that 53% of Americans believe that colleges could spend less and still maintain a high quality of education. The perception of unjustified costs has resulted in a public that is not willing to spend more on education. This has lead to a decrease in the general good will that colleges and universities have enjoyed over the years. Because of this decrease in good will and support, state and national policymakers have found it easier to exert more influence on higher education. This influence comes in the form of calls for “greater accountability” and more aggressive regulation.

Reference

Immerwahr, J. & Johnson J. (2009). Squeeze play 2009-The public’s views on college costs today. Public Agenda and The National Center for Public Policy and Higher Education. Retrieved October 15, 2009, from http://www.highereducation.org/reports/squeeze_play_09/squeeze_play_09.pdf.

Arkansas Department of Higher Education

The Arkansas Department of Higher Education (ADHE) was created WHEN to coordinate higher education within the state and to promote orderly and effective development of each public college and university in the state. ADHE acts to promote higher education to train a more effective workforce that will encourage economic development within the state. The director, Dr. Jim Purcell, states that, “At ADHE, we understand that one of the barriers standing between many of our citizens and higher education is the process of finding an institution to attend, applying to that institution, and then figuring out how to pay for it.”

ADHE acts as a coordinator for courses across the state. For example, they are the organization that ensures the course called “College Algebra” means the same thing at each institution. In addition, there is a department of Institutional Finance within ADHE. This Department works with the finances offices of the public institutions in Arkansas. It compiles that data to provide reports about the State’s higher education financing to the general public, government officials, and college and university staff. Some of the recent publications are available at http://www.adhe.edu/divisions/institutionalfinance/Pages/InstitutionalFinance.aspx .

The Financial Aid division provides a list of the state scholarships that are administered through ADHE. This Division’s webpage aims to educate the public about the different scholarships that are available as well as the policies and procedures for attaining one of the scholarships. There is a scholarship listing is available at http://www.adhe.edu/divisions/financialaid/Pages/fa_programs.aspx . (I was a recipient of one of these ADHE scholarships when I was an undergraduate, and I am grateful for their service!)

Reference
Arkansas Department of Higher Education (2009), Retrieved October 19, 2009 from http://www.adhe.edu .