Denial -- and disapppointment -- along the Mohawk...and Hudson...and Schuylkill, Susquehanna, Mississippi, and Willamette

"HOW IS IT that so many higher ed leaders (and so many that we know and believe are “smart”) live in professional denial?

"It is unbelievable, and so discouraging to hear/tell the same story over and over and have the status-quo be so tightly held onto...."

So ended an exchange between me and a friend, a dad with two kids in private colleges (who attended independent high schools) and who, himself, went to an independent school and then a private college.  My friend is a sophisticated, successful guy who is feeling slowly torn away from familiar educational cultural roots, and is feeling a heartsickness for himself and others. 

Part may be sentimentality and part may be frustration of the financial squeeze he feels but his views are far from unique, as we see “full pay” applications declining at all but the Marquee Name colleges, and yield on the more affluent admits dropping too.

As I recently told a college president friend “your per-family net revenue – what people pay after financial aid – can fairly be seen as your school’s public auction value, plain and simple.”

 

Here is my reply to my friend's message that his appeal for financial aid was denied, followed by his response:

 

"I’m sorry your financial aid appeal was unsuccessful.  You did all you could, so you can't fret about leaving any stone unturned.

"Many factors squeeze families....and colleges: families are pressed by escalating cost-of-attendance (outpacing earning and retirement savings) and colleges have investments in expensive overhead, ironically, intended to cater to the market.

"We are all 'living the stress' and will see what happens.

"You know my own wish is that more places try to do something like what Sage has done: holding price AND overhead expenses down…what it lacks in glamour and prestige, it makes up for in practical utility.  The market speaks: Sage’s enrollment and revenues have never been better."

 

"So true – something has to give as we have discussed. As long as the supply of students holds up, trustees have no real incentive to downsize the model to hold the price down or even cut it. In ten years Connor will be faced with a SUNY option or a scholarship option if it exists. Every parent has the same choice and hope. In the end, unless I’m missing something, schools will lose this tug of war once foreign students see the lack of value in exchange for their full pay admission."

"Twenty five years from now no one (domestic or foreign) will be willing to pay $100K+ per year for a four year romp in the 'expensive overhead' environments while the masses have used the same time to obtain specific skills for specific jobs. I’m all for a liberal arts education but the concept is becoming as quaint as it has become unaffordable.

"To that end, thirteen years at prep school is an equal waste of money – their 'classic basics' model is already way outdated. Their strength remains their ability to teach reading comprehension and writing to marginal students who wouldn’t otherwise develop those skills. However, if your kid doesn’t need that wind at his/her back then public school is the cost effective choice.  Admission stats (public-private ratio) have supported this shift for at least ten years.

"The current bump in admissions will fade and then what? Same old same old IMO.

"If I had my way I’d yank her after this year – have her finish at SUNY – leave some $$$ room for graduate school but only if more education is absolutely necessary. She wants a degree in psychology - she’d get as much from the Peace Corp at zero cost. The problem is reversing course mid-stream - very abrupt – hard to accept for the student. However, she might thank me later if she doesn’t carry $50K in debt into her young adult life. Tough decision."