Skip to Content

All Posts for The President's Blog

Does Wealth Inequality among Universities Pose a Threat to the American Economy? (Part 5)

July 13th, 2015 by dfarish

For the past several weeks, we have been considering the ramifications of a Moody’s study done in April of this year that noted a widening gap in wealth between a handful of very rich colleges and universities, and all of the other institutions of higher education in America.

Even as I was writing the posts in this series, something occurred that dramatically underscored my concerns about the wealth gap in higher education. John Paulson, a hedge fund manager and multibillionaire, gave $400 million to the world’s richest university: Harvard.

A Modest Proposal

January 28th, 2013 by dfarish

Readers of this blog are aware of my none-too-subtle concerns with wealthy campuses that do not exemplify best practices: rather than use their wealth to lower their sticker prices and create greater affordability for more prospective students, they have done just the opposite – they have raised their tuition prices and increased their already obscene levels of per-student expenditures.

But it is more than just a few well-known campuses behaving badly. At a time when American families are only too aware that colleges have become less and less affordable, the underlying cause of this unaffordability is the skewed distribution of revenue to institutions of higher learning in general.

More than one-third of all undergraduates are enrolled in two-year colleges. Some are focused on a two-year degree, but many of them plan to transfer to a four-year school and earn their baccalaureate. This is the least expensive level of higher education, with annual tuition generally around $3,000 – and it is the low cost that has led to swelling enrollments in community colleges.