institutionalfinance

Report says administrative bloat, construction booms not largely responsible for tuition increases

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A new report suggests that while growing personnel and construction costs are a factor in the rising price of public higher education, a decline in state funding is the real culprit. 

Howard U Turns to Alumni to Help Students Pay Bills

Wayne A. I. Frederick, president of Howard University, last month sent an appeal to alumni on behalf of 180 seniors who were on track academically to graduate this month, but who would be blocked from doing so because they owed money to the university. The Washington Post reported that Frederick described the seniors' circumstances (hometowns, majors, grades and debts) without giving their names. Their balances ranged from $313.50 to $27,871.75. The students collectively owed about $380,000 when Frederick sent out the appeal. So far the university has received $160,000 in response.

 

Cheyney U Didn't Track $50M in Student Aid

For three years, Cheyney University failed to meet its requirements to track federal student aid awarded to its students, The Pittsburgh Post-Gazette reported. Colleges and universities are required to do such tracking to make sure students are eligible, and Cheyney could have to repay funds for which it can't document student eligibility. Just under $50 million in aid awards was not tracked, and that process has now started. It is unclear how much the university could owe. Cheyney, a historically black college in Pennsylvania, is already facing significant financial problems.

 

Jury Rejects Suit Over Cal State's 2009 Tuition Increase

A California jury has rejected a class action against the California State University System over a 2009 tuition increase, City News Service reported. Students challenged the increase as illegal since they had already paid tuition. But the university argued that it had warned repeatedly of the possibility of tuition increases as the state imposed deep cuts in appropriations for higher education.

 

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Sanders enters presidential campaign and touts free tuition plan

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Bernie Sanders, the Vermont Independent, enters Democratic presidential race with a pitch for his free tuition plan, possibly putting some pressure on Hillary Clinton's left flank.

Performance-Funding Bill Advances in Texas

The Texas Senate on Thursday passed a bill that would require public colleges to meet several performance standards in order to increase tuition rates beyond the rate of inflation. Performance-based funding formulas, while controversial, are becoming more popular among state legislatures. The bill in Texas, which now goes to the state House for consideration, likely will draw national attention.

The 11 performance requirements in the proposed legislation include measures of graduation rates, student completion milestones, the number of degrees earned by at-risk students and the institution's administrative costs. 

In 2003 the Texas Legislature ceded its ability to set tuition rates at the state's public institutions. That move was a response in part to deep budget cuts, The Dallas Morning News reported. But tuition has risen quickly since then, said lawmakers who support the bill.

“The cost of college education has skyrocketed to where students are being priced out of higher education altogether or required to take out exorbitant student loans to finance their education,” said State Senator Charles Schwertner, a Republican, according to the Dallas newspaper.

Job Cuts at Concordia Moorhead

Concordia College in Moorhead, Minn., is cutting its workforce by 5 percent to respond to declining enrollments, Forum News Service reported. The cuts are a mix of faculty and staff positions, and a mix of “separation agreements” and of not replacing people who have left the college.

 

LSU Prepares Financial Exigency Plan

The Louisiana State University System is drafting a plan to declare financial exigency, The New Orleans Times-Picayune reported. Governor Bobby Jindal, a Republican, has proposed massive cuts for higher education and the Legislature's various versions of his budget have added to the cuts, which now appear to total more than 80 percent of state funds for LSU. While various plans have circulated to restore some of the money, those plans haven't advanced, which has prompted the financial exigency plan. Under financial exigency, it is generally easier for a university to make deep cuts. And because such statements mean that the survival of an institution is in danger, the American Association of University Professors permits layoffs to include tenured professors.

F. King Alexander, president and chancellor of LSU, said that declaring financial exigency would send a terrible message about the state of the institution. “You'll never get any more faculty,” he said.

Alaska-Fairbanks to Cut Several Academic Programs

A monthslong review by the University of Alaska at Fairbanks has concluded with a decision to eliminate six degree offerings in an effort to cut $14 million, Newsminer.com reported. The philosophy, engineering management and science management degrees will be eliminated, and certain degree offerings in chemistry, music and sociology will also be ended.

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State budget projections for higher education look bleak thanks to Medicaid costs

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Medicaid costs will lead to a bleak decade for state spending on higher education, a new study predicts.

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