News Release
October 25, 2005
Higher education experts propose solutions to the college cost crisis
Indianapolis—A diverse group of higher education experts has proposed multiple solutions to the rising cost of a college education. The solutions range from significant shifts in distance learning, to tuition reimbursement, to outsourcing, to "unbundled" certificate programs and more.
The proposals were submitted to Lumina Foundation for Education in response to its August 2004 nationwide Call for Solutions to the rising cost of college. The Indiana-based private foundation will feature the solutions at its upcoming College Costs: Making Opportunity Affordable summit, which will be held on November 2 in Washington, D.C.
Presented in collaboration with the James B. Hunt Institute for Educational Leadership and Policy and more than 55 partner organizations, the summit will launch a major initiative to develop and implement higher education policies and practices that effectively address rising costs of college. Costs have increased 240 percent between 1986 and 2004, according to a recent GAO report, more than triple the rate of inflation during the same period (72 percent).
The eight solution papers were submitted by the authors in response to Lumina Foundation's policy brief, Collision Course: Rising Costs Threaten America's Future PDF, which outlined the problem of rising costs and suggested multiple strategies for addressing the problem. That policy brief is available for viewing online at www.collegecosts.info. From a total of 25 papers submitted, eight were chosen for publication by a national editorial review panel. The papers are included in a Lumina Foundation publication called Course Corrections: Experts Offer Solutions to the College Cost Crisis, and will be distributed to state and federal policymakers, secondary and higher education officials, leaders in business and philanthropy, and organizations representing students and families.
"These recommendations represent innovative approaches for solving a problem that is affecting more than 400,000 qualified students every year," said Lumina Foundation President and CEO Martha Lamkin. "No ‘silver bullet' exists to reduce college costs, but these collaborative approaches show real promise. Our aim is to highlight these and stimulate even more actionable ideas."
The proposed solutions will be just one of the focal points of the November 2 summit, which will be held at the Ronald Reagan Building and International Trade Center, located at 1300 Pennsylvania Avenue, NW. Attended by an expected 300-400 state and federal policymakers and representatives of higher education institutions and organizations, business and consumer groups, the summit will be an interactive, day-long event exploring a variety of innovative measures to limit cost while increasing higher education access, affordability and achievement.
Thomas L. Friedman, columnist for The New York Times and author of the highly acclaimed, The World Is Flat: A Brief History of the Twenty-First Century, will be the luncheon speaker. Other presenters include U.S. Senator Richard Lugar, Tom Luce, Assistant Secretary, Office of Planning, Evaluation and Policy Development at the U.S. Department of Education, former North Carolina Governor James B. Hunt, Jr. and former Michigan Governor John Engler, U.S. Chamber of Commerce CEO Suzanne Clark and several other education leaders.
The news media is welcome to attend the summit, but advance registration is recommended. Please contact Chris Beakey at (202) 667-0901 for more information.
Brief summaries of the solutions papers are listed below. To view the complete publication of papers, and to learn more about College Costs: Making Opportunity Affordable, please visit www.collegecosts.info.
Outsourcing of non-mission-critical functions: A solution to the rising cost of college attendance. This paper discusses outsourcing as one solution to the college cost crisis. It briefly reviews why institutions consider outsourcing, the current use and trends, potential new areas and challenges, and solutions to address those challenges. It is authored by Mary F. Bushman, vice president for public policy and communications in the Commercial Services Group at ACS Inc. and John E. Dean, a partner in the Washington, D.C., law firm of Dean Blakey, which specializes in representing clients involved in federal higher education programs.
Improving quality and reducing costs: The case for redesign. This paper examines the significant benefits of technology for lowering college costs, boosting the efficiency of course delivery and strengthening retention. It reveals results of a five-year National Center for Academic Transformation (NCAT) project that enabled participating institutions to reduce their costs more than 37 percent while maintaining and boosting student learning. It is authored by NCAT President and CEO Carol A. Twigg.
Shared solutions: The Kansas perspective. This paper focuses on the benefits of tuition reimbursement programs, both for lowering college costs for the student and for strengthening the workforce, particularly in areas where there is a high need for highly skilled workers, such as the medical profession. It is authored by Lana Oleen, former majority leader of the Kansas Senate; Debra Hollon, senior fiscal analyst for the Kansas Legislative Research Department; and Diane Lindeman, director of student financial aid for the Kansas Board of Regents.
Avoiding a collision course: A state policy agenda for increasing high school students' college readiness. This paper addresses approaches for ensuring that more students graduate from high school college-ready, thereby lowering college costs through savings in remediation, and enabling more students to graduate in four years. It is authored by Kristin D. Conklin, senior policy analyst in the Education Division of the National Governors Association Center for Best Practices.
A question of effectiveness: Michigan's solutions to the college cost issue. This paper reviews two of Michigan's state-supported initiatives to contain college costs. They include a state income tax credit for students attending colleges that limit tuition increase rates to the rate of increase for the U.S. Urban Consumer Price Index (CPI), and restoration of 2003 mid-year cuts in state funds to public colleges that preserved the tax credit eligibility. It is authored by Timothy M. Kuehnlein Jr. and Olin Joynton. Kuehnlein is an instructor of political science and history at Alpena Community College, where Joynton serves as president.
Approaching the dilemma from both sides: PROMISE credits for young students and creating a campus environment more conducive to cutting costs. This paper reviews a concept for the PROMISE program, through which the federal government would award credits annually to students who are eligible to free-and-reduced price school lunch programs or on temporary public assistance. The credits would be used for postsecondary education expenses and would be based on family income levels over the long-term, rather than just the last year before the child applies to college. The paper also discusses how to negotiate conflicts between academic mission and the financial bottom line. It is authored by Sandy Baum, a professor of economics at Skidmore College and senior policy analyst with the College Board.
Tipping point: Controlling college textbook prices. Referencing the 79 percent price increase for attending the University of California between 2001-2002 and 2005-2006, this paper addresses the importance of "reducing smaller, ancillary costs that act as a ‘tipping point' for students on the economic margins" by focusing on textbook costs. It is authored by Merriah S. Fairchild, a higher education advocate with the California Public Interest Research Group (CALPIRG) Education Fund, which promotes affordable education, consumer protection and good government in California.
Seven Steps: Ways to reduce instructional costs and improve undergraduate and graduate education. This paper focuses on seven practices designed to make undergraduate and graduate education more affordable, and the delivery of education more efficient. It is authored by Bill Coplin, professor of public affairs at the Maxwell School and the College of Arts and Sciences at Syracuse University. Coplin is the author of 10 Things Employers Want You to Learn in College (Ten Speed Press, 2003).
Toward a new way of thinking: quality, productivity and college costs. This paper focuses on new models for the delivery of higher education, including cross-institutional collaboration to develop courses, better use of technology and distance learning. It is authored by Dewayne Matthews, senior research director at Lumina Foundation for Education, who leads the Foundation's research on student access and success in postsecondary education.
Other ideas of note: Thoughts on cost-cutting gleaned from unpublished essays. Lumina Foundation has also compiled an essay with a collage of promising solutions taken from several additional solution papers submitted.
About Lumina Foundation
Lumina Foundation for Education, an Indianapolis-based, private, independent foundation, strives to help people achieve their potential by expanding access and success in education beyond high school. Through grants for research, innovation, communication, and evaluation, as well as policy education and leadership development, Lumina Foundation addresses issues that affect access and educational attainment among all students, particularly underserved student groups, including adult learners. The Foundation bases its mission on the belief that postsecondary education remains one of the most beneficial investments that individuals can make in themselves and that society can make in its people.
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