Some experts in the educational field are predicting that 25% of U.S. colleges and universities will close in the next 20 years due to financial problems and low enrollment.

https://www.cbsnews.com/news/expert...es-will-fail-in-the-next-20-years-2019-08-31/

However, failure to provide skills that will prepare students for the job market is a big factor in declining enrollment and many consider going to college a waste of time and money.

It's quite obvious that higher education has become just another "industrial complex" and a jobs program for public employee unions and government contractors.

 

Interesting...in spite of the availability of student loans people cannot afford to pay tuitions. Or maybe they are too smart to fall into the trap, but what will replace college as young people prepare for their careers?

I worry about my great grandchildren.

 

From my own experience, vocational education might be the best option for people with a technical aptitude.

Most jobs will be in the STEM fields, but today's vocational education also provides a lot of theoretical knowledge in addition to just hands on training. I've known several people in the elevator trade that were able to acquire the theoretical knowledge of power electronics and motor controls which enabled them to get a 2 year certificate at a community college and some were also able to get a BS degree in electrical engineering.

Maybe it's time to "Think Outside The Box" and offer some new ideas for building an educated workforce. .

 

Here are some data from Middlebury College in Vermont (http://www.middlebury.edu/newsroom/archive/2019-news/node/615929 ). As a parent who had 4 children go to other private colleges/universities, these numbers are not exceptional. To me, the "Value" line was important. Why should one pay a premium of 44% (1/69.3%) ?

Note: Middlebury data are based on "Full Cost," which includes tuition, room and board, and fees. Tuition only data were not available from that source. For some colleges/universities those date are available. As one who has lived off campus during college with 2 roommates on $5/wk each for food, there might be substantial savings in room and board. We even had money left over for parties. We ate a lot of beans, eggs, and spaghetti.


55% of the students do not get subsidy and presumably pay: $71,830
45% of students get an average of $49,000 in aid and pay: $22,830
Number of students = 2500

Thus, total revenue is:
1375 X $71,830 = $98,766,250
1125 X $22,830 = $25,683,750
Total = $124,450,000 (assume this is total operating revenue for year)
Total/student = $49,780

Assuming Middlebury has no other income and no surplus:
Value received for non-needy = 69.3% (total cost to Middlebury/amount paid to Middlebury
Value received for needy = 218%


As my grandchildren head off to colleges, this type of accounting is hitting my children and in-state public universities are more attractive. What will happen to the small, private colleges? Ideally, they will respond by becoming more efficient and providing more value. In reality, they probably won't and their their properties will end up being sold to developers. Burlington College is one such example (https://www.nytimes.com/2019/06/21/us/politics/jane-omeara-sanders-burlington-college.html ).

 

Here in Georgia, we started the HOPE Scholarship in the 90s which has since been adopted by other states. The State Stupidity Tax (otherwise known as the Lottery) funds the program which pays for books & tuition of all students maintaining a 3.0-grade average. You are on your own for food and housing. Paid for 3 of my kids. I can remember when many state college tuitions were free for its residents and there were always a few students "living" with their in-state grandparents who had graduated high school out of state and were avoiding out of state tuition add-ons. Of course, they still offer education for "Degrees" in areas that will never pay back the cost of education and as always Caveat Emptor if you elect to receive a degree in "Basket Weaving" or other such esoteric degrees. The Mrs. degree also seems very popular even today.