Colleges market education as an opportunity for a better life. However, that opportunity is becoming more of a pipe dream for many Americans thanks to the soaring costs. The average tuition for a public university is now $10,116; for a private university it is $36,800. Keep in mind these costs pertain only to tuition, while other expenses to account for include textbooks and, of course, room and board.
What’s more, the cost of tuition continues to rise at an alarming rate. In the past decade, CNBC noted average tuition prices rose 37 percent. Because of the higher costs, universities would presumably spend their money retaining the best professors and providing more opportunities for students by way of scholarships and research opportunities. Yet this doesn't always end up being the case.
Professors face an uncertain future
Tenure used to be a quite attainable goal for a professor. Now, the opportunity seems more removed than ever. Currently, nearly three-quarters of U.S. professors, or 73 percent, don’t have a clear track to tenure. Earning tenure is often the key not just to job security but to earning a higher salary; the average pay for a professor today hovers around $80,000.
Money aside, professors more broadly are facing uncertain futures without the support they need. The American Association of University Professors reported, “For the most part, these are insecure, unsupported positions with little job security and fewer protections for academic freedom.”
So, just where does all the money go that universities are pocketing from skyrocketing tuition rates? Oddly, much of it gets -plowed back into staff – that is, non-teaching staff whose primary role is to recruit students and student athletes. These staff members are fundraisers, admissions counselors, athletic staff, and other university support members whose goal is to bring in students and cater to them.
Then there are expenses related to new buildings. Colleges continue to spend billions of dollars annually on new buildings. The schools justify these costs because they claim new buildings illustrate the perception of a college’s success, increasing their enrollment numbers.
Then there are athletics, which take up a sizeable chunk of a college budget. Consider the stadiums, facilities upgrades, coaches’ salaries, uniforms and other marketing factors that go into maintaining and growing sports programs. This is far from a profitable venture, as only [37 schools reportedly earn more revenue](https://sports.usatoday.com/ncaa/finances/ ] than they spend on sports programs.
How corporations work with colleges to create value
The concept of the corporate college is two-fold. The public is by now pretty aware that for-profit colleges often cost more than state-run institutions. Many of these colleges epitomize what has become the colloquial definition of "corporate": a big bad organization only interested in taking people's money.
For colleges and universities, working with more ethical corporations that are invested in education can be fruitful partnerships. Many have invested in online programs, whereby colleges partner with corporate online program managers (OPMs) that create programs for many of America’s top colleges, including Harvard, Yale, and New York University.
Companies like Intel, Apple, and Cisco have partnered with colleges to provide curricula based on the needs of the industry. These so-called corporate colleges presumably help students gain the education they need to move from the classroom into a job armed with a specific skill set. But often, those promises aren't realized, forcing students to look elsewhere for their career track.
Finding alternative solutions
The rising cost of college education has led many young people to consider other alternatives, including online resources like as Udemy, Coursera, and the MIT OpenCourseWare that offer free college classes. In the case of some, like Coursera, students can pay a small fee to earn a certificate in each course they complete.
And there are other creative ways to go about getting a higher education while minimizing expenses. One route is to start at a community college and take all core classes there, then move on to a four-year university to finish out one's education. Given the lower costs of junior college, this a financially smart option to take.
You can also use your employment to bypass some of the costs of a college education. Many companies offer tuition reimbursement where they agree to pay for approved classes if a student earns a specific grade or higher. It’s important to note that these benefits usually come with restrictions on which classes someone can take, and they must generally stay with the company for a specified time after receiving the benefit or could be subject to repayment.
Another option concerns working where you attend college. Many universities have entry-level jobs in office, maintenance and other fields where you can get your foot in the door, make some money, and receive tuition assistance. This assistance varies by school but it’s a great way to reduce how much money you would have to borrow.
Overall, the rising costs of higher education are making college too expensive for many American families. Colleges justify these costs claiming they need the income to keep enrollment numbers high, while forgetting to add that their partnerships with corporations only further inflate these fees. Because of the soaring expenses, some are using alternative routes to bypass college and gain the education they need – while not plunging into a lifetime of debt.
