Confidence In Universities Continues To Fall
Last week, The Atlantic ran a piece, Higher Ed Is Very Sorry: Universities are studying how they lost the public’s trust:
Just 10 years ago, almost 60 percent of Americans said they had a lot of confidence in higher education. By last year, that number had fallen to 42 percent. Seventy percent of Americans told Pew last fall that higher education is moving in the wrong direction. The disdain has become so difficult to ignore that, over the past year, several universities and higher-education organizations set out to study how they lost the public’s trust—and how they might restore it.
The most insightful of theae studies appears to be from Yale:
The report, released in April, is nominally about Yale, but it could just as well be about the Ivy League in general. It identifies three main areas where elite universities have fallen short.
First, according to the report, these schools lost trust because of their convoluted pricing system; many set exorbitant tuition and use revenues from the richest families, who pay full price, to subsidize the cost of attendance for everyone else. The sticker price of attending Yale, for example, is $94,100 in annual tuition and fees. But families making less than $200,000 receive free tuition. The problem is that many Americans—according to one survey, 48 percent—wrongly assume that everyone pays full price. This contributes to the overwhelming, but incorrect, sense that college keeps getting more and more expensive. (On average, Americans are paying less for college than they were a decade ago.)
This is a peculiar observation, and certainly counterfactual. I asked Chrome AI mode, "Has the cost of higher education exceeded the rate of inflation for several generations?" It answered,
Yes, the sticker price of higher education has drastically exceeded the rate of inflation for several generations, stretching from the Baby Boomers through Millennials. Since 1980, undergraduate tuition and fees have surged by roughly 1,200%, whereas the general Consumer Price Index (CPI) grew by only about 300% over the same timeframe.
Then it added a qualifier that may be behind the statement that "Americans are paying less for college than they were a decade ago":
However, looking strictly at the "sticker price" obscures a major recent shift: over the last decade, the actual "net price" (what students pay after accounting for grants and scholarships) has finally stabilized or even declined when adjusted for inflation.
But this simply transfers the cost to other payers, for instance government aid or the increasing proportion of foreign students who pay full freight, it doesn't mean a college education costs less. And this leaves out studenet loans:
The amount of student debt in 2023 totaled $1.6 trillion, more than twice the amount outstanding in 2008 ($600 billion). That growth in debt significantly exceeds changes in the number of students over that period, which the Department of Education estimates has decreased by three percent among undergraduates and increased by 12 percent at the graduate level.
If college costs are decreasing, why has the total for student loans ballooned? This is counterintuitive at best. The piece continues,
Then there’s the opaque and at times seemingly arbitrary way that elite universities determine whom to admit. Although Yale shields most details of how it makes its decisions, the available evidence suggests that the university often privileges wealth, status, and athletic ability over purely academic considerations. Finally, the report argues that Yale has strayed from its focus on rigor and academic excellence. At the college, the median grade is an A. “Grades, like colleges and universities, no longer seem trustworthy,” the committee observes.
These are two completely separate issues. Admissions criteria, particularly in the Ivy League, are a closely guarded secret, but I've occasionally looked at the makeup of Ivy entering classes here, and that data is public and likely reflects admissions criteria closely. Around 25% are foreign students, just for starters -- they pay full freight and must certainly come from elites. Around 25% are legacies, preppies, and children of major donors.Around 25% are athletes and DEI, leaving only about another 25% admitted on merit, although there are preferences even within this category -- an applicant from Idaho will get in with lower grades and SATs than one from Long Island. The reputation of the Ivies for being meritocratic is entirely undeserved, and it fed a major crisis for me when I couldn't figure out why so many of my Ivy classmates were such dummies.
The question of "academic excellence" is entirely separate, but in some ways it's related to the cost of college: if the price keeps rising, the parents in particular will want to see a benefit, and if their kids aren't getting As, they won't think they're getting what they paid for. But there's also a direct benefit for the professors and their deparments: if they don't give lots of As, the students won't enroll in their classes, and if their classes don't make enrollment, they're out of money.
So Yale senses that the univewrsities are giving away the game, but the game is the game, you can't change the incentives, especially when you keep raising the price. In a related story, Education Department cuts loan eligibility for college degree programs yielding 'low-earning' jobs:
Bachelor’s programs will now be required to prove that their graduates earn higher median annual earnings than the average high school graduate, and masters programs that their graduates earn higher median annual earnings than the average bachelor’s degree recipient.
If a program's graduates do not meet this threshold in two-out-of-any-three consecutive award years, the program is categorized as ‘low-earning’ and loses eligibility for Direct Loans. Bachelor’s programs in Religion/Religious Studies (53.3%) and Graphic Communications (17.7%) most frequently failed the earnings test, according to agency data.
“If a program cannot show that it leaves its graduates financially better off than if they had never enrolled, it should not be underwritten by federal taxpayers,” said Under Secretary of Education Nicholas Kent.
Oh, no! Those philistines are daring to measure the value of an education by money! But education is far, far more than just money!
[T]he National Education Association, the nation’s largest teachers union, called the new earnings test a “severe regression in consumer protection.”
The union also argued that “an earnings premium alone does not go nearly far enough to ensure that programs lead to true financial stability" and that the rule “abandons advanced degree seekers,” as well as “unfairly penalizes essential but lower-paying public service fields,” which carry non-monetary value.
But if prestige schools charge a premium -- now in the $100,000 per year range -- on the basis of the claim that the're meritocratic, and the degree is an endorsement of the student's merit, then if the claim is hollow, consumers need to be informed and spend their money elsewhere. By the same token, people take out student loans on the expectation that the increased income from their degrees will make it a good economic choice to pay the loans off. Consumers need to be informed if this isn't the case. The Atlantic piece notes that the Yale report notes that "vague and contradictory aims" make it "difficult to judge whether universities are living up to their own standards, and have led to confusion about what universities are even for."Back in May, I noted Elon Musk's remarks that “You don’t need college to learn stuff. Everything is available basically for free. You can learn anything you want for free.” Especially with the internet and now AI, this is correct, you can get free web access at a public library. An AI query can certainly point you in the same direction as a sophomore-level college course, and the universities themselves are now terrified that students can turn in AI-generated papers, and no one will be the wiser.
So where's the value added?



