College costs are rising even as small, private colleges face enrollment and other challenges. Here in Iowa, a local college has closed, some consider mergers, and others attempt to weather enrollment and retention challenges.

Since I’ve written a novel about a college for monsters in a small town, I had to address some of these challenges and consider the causes. I found some things that surprised me. For example, this is a highly partisan issue. Republicans blame colleges and Democrats wish to make more money available to keep costs down. This is what my research taught me:

1. College costs have been rising rapidly since the 1980s. Here’s a chart showing this rise. What happened in the 1980s? Reaganomics. Reaganomics is an unproven economic theory which is pretty much the boat that Republicans cling to even today–cutting taxes, especially at the top, and shifting spending to the military will stimulate growth in all areas. Thus, government support for education came crashing down, and falls down whenever Republicans are in charge of the budget. I’ll leave it up to you to decide if this policy works for the nation or not. All I can say is that this is when it all began.
2. The costs per student have risen over time, even as student-faculty ratios have decreased, meaning that faculty salaries can’t be the cause of rising college costs. Here are some references, although you will have to wade through them. However, let’s look at personnel as a cost factor for a moment. As Central College President Mark Putnam points out, colleges are “professional services.” They require on face to face contact with educated and sought after professionals. Doctors, dentists, and lawyers are other examples of such professionals. These sectors of our economy can’t increase productivity without decreasing quality. They can’t replace workers with robots or outsource to another area of the globe and retain the same quality of service. Yes, there are on-line colleges but they aren’t as valuable as being on campus in classrooms, doing hands-on things such as research with professors. I’ve created many do it at home labs but these are not as technology rich as on campus experiences.

In fact, faculty salaries are NOT the main reason for tuition increases.  Not only have faculty salaries risen slowly, slower than inflation, they account for around thirty cents of every tuition dollar. Also, college and university faculty get paid less than their private sector counterparts. Professors are considered underpaid. Why do they still teach? Besides finding it enjoyable and a public good, they are willing to take less salary in order to have job security. This is why getting rid of tuition is a dumb idea. It will increase costs and reduce stability.

Like other areas of the private sector, colleges are faced with rising medical and dental benefits for their full-time staff. However, instruction quality increases when faculty have adequate benefits.

3. Extra administration has often been cited for the increase in college costs. Non-teaching staff and administration make up the bulk of a college’s cost nowadays. That’s right. It’s not the teaches! Some of these positions, in IT for example, did not exist in the days of low tuition. Others are in areas such as counseling and fund raising that either meet a need or secure funds for the future. More administration is most certainly is a reason for higher costs. However, colleges have a lot of extra accountability these days and parents do want their students to have access to many of these services. In fact, studies have shown that college students today are more needy, perhaps due to helicopter parenting or life’s harsh realities or even parental demands that colleges assist the students with every challenge. Students and parents do not want any surprises. In my own experience, not only have administrative costs risen, what needs to be put on a syllabus has skyrocketed as well. I suspect that much of this comes from the diverse group of students who attend college. No longer is it just for the privileged few who have parents who went to college and can give advice. It’s been, thankfully, opened to many and administrators and advisers are needed to keep pace with the demands. Still, I can’t help cringing when my alma matter adds another administrative or marketing position.
4. Colleges face huge costs when it comes to technology. I personally oversaw a fleet of measuring instruments. Many were not commonly used when I began teaching and now are so routine that every lab must have one in order to teach students the skills they need for the future. I got outside grants to pay for them but they still add expense as they must be maintained. Having a high technology program on campus such as an engineering or medical college also raises costs.

This was once the science building at Central College but it’s way too small for all the equipment and technology that go with science these days. It’s the happy home for English and History now.

5. Colleges get about half of the money it takes to run them from tuition. Even as tuition is rising, it doesn’t pay the full cost of educating students. Other sources of money to pay for college include private donations, government money, and grants from private and government sources. Personal giving has helped keep colleges and universities affordable.
6. A few reasons floated for the tuition increases include cushy dorms, multiple sports, and other attempts at branding. There is a joke going around about how often colleges pay for “re-branding” and new logos. This occurred in the past ten-fifteen years as colleges struggled to differentiate themselves from each other. 
7. Another idea is that costs have gone up because there is too much demand for college. Those who can’t afford it simply shouldn’t go. College costs rose after the GI bill so there might be some credibility to it. Yet, it doesn’t hold up because at least in Iowa, we have fewer students going to college and less demand.
8. Perhaps the most cited reason for tuition increase is this one: politicians. Less support from the government has helped raise tuition costs. Tuition is lower in states that support higher education. Here in Iowa, the change in state appropriation for higher education has decreased nearly 20% over the past fifteen years while college tuition has gone up just 7%. Colleges are trying to hold the line on tuition increases and making do with less. This LESS is due to cutbacks. Reaganomics. 

Recently in Iowa, some colleges asked for financial help from COVID relief funds. COVID did put a strain on colleges, and it makes sense to spend money to help them. Our governor said NO and sent National Guard troops to the border with some of the money. Elected officials don’t support college and even complain about some majors. I’ve seen numerous memes and articles about certain majors, mostly social science based with Gender Studies topping the filed. But as my students enlightened me, many video games use these principles, and things like black history to enhance the games. And look at the success of the Barbie movies! Gender studies pays off more than the critics let on. In my novel, the college will face challenges from outsiders who want the monsters to prove themselves useful. It’s not lost on me that politicians support STEM, not because knowledge is beautiful and enriching but because they expect it to make money, especially for their donors.

Is college worth it? There are many statistics to say that it is.

Unemployment rate for college graduates is 2less than for non-degree holders. Yes, some majors will get you a specialized job but there are no useless majors. I repeat, there are no useless majors. It’s a fib. Study what you love. 

Only 4% of college graduates live in poverty vs 12% for non-college graduates.

College graduates earn over 60% more.

College graduates are happier, healthier, and live on average seven years longer. 

I’m not an expert on college tuition and the rise in costs are complicated. Feel free to disagree with me! For simplicity’s sake, if you are angry about the cost of college and want something to put on a dart board, I offer this official photo of the man who started it all.

Ronald Reagan is an example of someone born poor and helped by the government who later made sure that the poor got less help than he did.