College Professors don't exactly make the big bucks either.
Yet, universities in the US have made put many Americans in lifelong debt.
These colleges are all "nonprofit" (and get significant tax benefits), so where is the money even going?
For state colleges, they're often some of the highest paid employees in the state. [1]
1. https://www.espn.com/espn/feature/story/_/id/28261213/dabo-s...
President of my undergrad college made $884K last year [1], but a medical school professor made nearly $2M.
1. https://nonprofitlight.com/ny/rochester/university-of-roches...
Point is he's making that money for the hospital for patient services, not because of his teaching.
Not only that, for most universities college football (some men's basketball) cover all the other men's and women's sports that hemorrhage money.
IMO the guy in big-10 football who deserves a multi million dollar salary is the guy in the mascot fursuit.
Now do this analysis while paying student-athletes salaries and tell me if the coaches are bargain.
That's not even counting the weird universities like WGU, where you can get a bachelors for less than ~$15,000 without too much trouble.
For people in many European countries, this is an absurd amount of debt to get a university degree.
Edit: For context: About 20 years ago, my university's annual fees was $15000/year for out of state students, and $4600 for in state - in today's dollars. Now that university charges $28K for out of state and $8.3K for in state - almost doubled after accounting for inflation. In other nearby universities I see people paying $15K/year for in state. This is a huge increase in two decades.
I'm just saying that, for someone working an engineering job, that is not generally a life-ruining amount of money, especially in comparison to the increased earning potential that a degree affords you (which is, I suspect, why they get away with charging such exorbitant tuition in the first place).
If we double the number I gave to $60,000, that's a lot more, and starting to approach life-ruining territory, but I'd say still falls a bit shy of it for an engineer.
The first time I attempted school and dropped out, I started getting a ton of advertisements for for-profit universities in the mail. I knew that they were often scams, so I threw them away, but I can totally see an alternate universe in which I don't know that and end up with a boatload of debt for the rest of my life.
And you aren't even paying for the same sort of things: Many colleges have sports teams in the US, for example, and the degrees take longer in the US. For example, you don't have to get an undergraduate degree in Norway to become a doctor so you spend less time actually in school.
Research is also a cost, even though they some of it back, they aren't VCs so this can bleed money there as well, and pretty fast, especially for underperforming institutions.
I'm shocked shocked by the tuition fees in the U.S. But comparing with India and even Europe is a bit silly since those places don't compare in term of university ranking and average income level. Those professors/researchers are packed with long years of studies plus a loan they had accumulated themselves so it's a bit like a positive feedback loop.
I have a family member who works in the “alumni relations” department of a small, regional public university. Probably ranked like #300 or something. There are like 5 people in the department. They make a magazine, email newsletter and schedule alumni events.
It was really surreal when they explained their job and that the department exists.
There’s an admin costs problem in this country. There’s no sufficient governance or oversight in controlling university spending. This is even a public university and it’s just bizarre that they can make up positions that shouldn’t even exist.
Or it might not.
Thats the root of the problem. The administrators are the people coming up with the metrics and arguments to justify their own existence.
I’m sure many of them believe they’re making a positive contribution, and the situation is more complex and tragic than just “these are the baddies” type arguments suggest, but there’s still an accountability problem that needs to be reckoned with.
Further when the engineering firm you started after graduation with some of your classmates wines a National science award. Getting that profiled in the alumni newsletter could be unlocking a range of oppprtunities for your firm from grant funder interest to new commercialisation opportunity, all coming out of the alumni network.
Just cause the work is quiet doesn’t mean it’s pointless.
I’m a big fan of quiet work, but this is pointless. It’s not pointless because it’s quiet. It’s pointless because it has minimal to no positive impact.
My anecdote wasn’t intended as evidence.
But there’s definitely a problem. You can look at official sources [0] for evidence showing that admin expenses are 21% at public, four year schools.
I found this article while looking for the official stats [1] that claims the average university in the US has 45 people in DEI. DEI is very important, I think, but 45 employees boggles the mind and seems to be more of a symptom of runaway costs and lack of controls that would allow for so many admin staff on a single topic.
[0] https://nces.ed.gov/fastfacts/display.asp?id=75 [1] https://www.heritage.org/education/commentary/administrative...
The problem is that these aren’t efficient dollars anyway. Spending $500k to net $500k is not a good return. Schools should focus on better returns, like teaching and research.
The incentive to have a alumni department to increase donations clearly isn’t in the best interests of society.
[1] https://www.cbpp.org/research/state-budget-and-tax/state-hig...
Or monetize research instead of gifting it to large (pharmaceutical) companies?
This isn’t the only way for education to fund itself, and the incentives are not aligned with the mission.
Should schools develop software and the pass the code off to Microsoft or Oracle to deploy it on their servers?
A university couldn’t possibly do it themselves, not without giving away billions to industry!!!
Feel free to download a breakdown of revenues and expenses for the university of your choice at: https://ope.ed.gov/athletics/#/
You are going to find that almost every school is net neutral with respect to their sports programs. Football and basketball typically funding all other sports.
Expenses: 12M, 25M, 13M, 70M
Revenue: 6M, 30M, 13M, 44M
1/4 is making a slight profit. 1/4 is breaking even. 2/4 are making a major loss.
A Kennesaw State University (00157700 )| Total Enrollment: 27,300
B Georgia Institute of Technology-Main Campus | Total Enrollment: 14,476
C Georgia State University | Total Enrollment: 22,276
D University of Georgia | Total Enrollment: 27,877
“University of Georgia Athletics approved a new budget for the 2022 fiscal year on Friday. The budget is set at $150,290,994, which is $7.7 million more than in 2019 and $3 million short of the 2020 budget.
Georgia athletic director Josh Brooks told media that the 2020 budget shortfall is currently $30 million and was previously $53 million amid the COVID-19 pandemic.”
https://ugawire.usatoday.com/2021/05/28/georgia-foootball-ug...
Later in the article, it states that the stadiums were at partial capacity (mid 2021), so once stadiums went back to full capacity revenue surely increase significantly.
This is hyperbole, the government is spending billions on American Universities in a myriad of different ways. And, many ways of support are not direct. One could argue that the guaranteed student loan programs are a roundabout way of supporting universities through tax dollars as well.
No, guaranteed student loans are a way to transfer wealth from future taxpayers and borrowers to beneficiaries of tuition such as university staff and whoever is receiving money from the university such as construction companies and whatnot.
The guaranteed loans with no underwriting obfuscate costs and thus result in a mid allocation of society’s resources. Such as leagues of people spending their valuable years learning “communications” or “business” degrees and then sitting in a call center or other role that does not pay enough to make the degree they paid for in time and money to have any decent or even positive ROI.
The money goes to the college administrators. They're major bureaucracies that plague and control universities money supply and more or less dictate universities' policies.
The money goes to the athletics and the infrastructure. (Not in the sense of "the best infrastructure money can buy", sadly; no, it's more like "raise $300 million to build this new dorm and let the richest donor put their name on it, then spend about 30% of what it needs for maintenance for the next 30 years...and then spend 5x the amount we would've had to if we'd just maintained it in remediation and renovations".)
Athletics for most schools are a net profit center, even for the #100 football program. The smaller schools aren't spending nearly so much on athletics as the schools with football programs.
Meanwhile, the coaches are being paid millions of dollars per year. I don't care how much money the athletic program is bringing in; that's not a responsible use of the money. (I get that it's something of a prisoner's dilemma at the individual institution level; I'm more talking about the broader issue.) If you have the money to pay the coaches $2M/year, that means you could, instead, stop paying your adjunct professors and regular staff sub-poverty wages, and/or perform proper maintenance on the buildings.
And do not get me started on the economics of stadium construction.
Most of these requirements independently make sense, but the sum impact weighs down universities and drives up cost.
The regulations provide the justification for the jobs program needed to soak up the excess supply of non-trade graduates generated by overenthusiastic student loan policy.
They are mostly not optional if you want to receive federal funding. There are some small colleges that are totally private, do not take government funds, and so don't have to implement and administer many government regulations.
This kind of thing would be like saying your typical account manager's job is surreal and perhaps in some cases that might be true :-)
- Too much admin per student compared to 40 years ago
- (Much more likely): Severe decline in funds from the state. I know at least one nearby university that showed the data that the increase in tuition from 1980 to 2010 was almost entirely due to government cuts, and that the budget spending per student hadn't changed in that time frame - adjusted for inflation.
- Fancy buildings
This may be a good explanation for public institutions, but what is the justification for private institutions?
For example, a year at the University of Pennsylvania (a private university) in 1980 cost about $7200 (equivalent to $25K today), but Penn currently charges about $75K per year.
What is the justification for the additional tripling of charges, even after adjusting for inflation?
As an example, here is the UC system:
https://lao.ca.gov/Publications/Report/4511
https://accountability.universityofcalifornia.edu/2021/chapt...
About 70% of the UC budget goes to salaries and benefits. Of that, 70% of staff is non-academic.
Full context below:
Non-academic staff employees constitute nearly 70 percent of UC’s workforce and are responsible for health services, student services, instruction and research support, compliance, and general administration (6.1.1). In October 2020, this group included 143,188 individuals. Overall, this staff workforce represented over 115,577 full-time equivalent (FTE) employees in that month.
STAFF WORKFORCE About six out of every ten UC staff FTE are working for the University of California Health system. These frontline workers (including doctors, nurses, administrators, technicians, and allied health professionals) are playing a critical role in California’s response to the COVID-19 pandemic. Over 97 percent of these employees are supported by non-core funds, typically the revenues generated by hospital services. Students often work part-time on campus as part of their financial aid packages or for research experience. During the pandemic, UC campuses transitioned to remote instruction. With staff, faculty, and students no longer on campus, student employee headcount at general campus halved from 36,000 in October 2019 to 18,000 in October 2020. General campus, non-student employees are the remainder of the University’s staff, at 43,752 FTE. This includes student services employees, career advisors, IT specialists, research administration, laboratory staff, food and auxiliary service workers, accountants, maintenance and janitorial staff, safety workers, and analysts (6.1.1).
These are typically regular (teaching) hospitals, they serve the community not just the university.
I came away with the numbers 232k employees with earnings in 2021. https://universityofcalifornia.edu/about-us/information-cent...
And Fall 2021 has student enrollment at 294,662. https://www.universityofcalifornia.edu/about-us/information-...
Some quick caveats, the employee count is for a year, and the UC system has about an 8% separation rate. The employee count also includes 29k student employees. Even so, that feels like way too many employees to service that student count, a bulk of which are listed as non-student professional and support staff.
Administrative staff, which has ballooned over the past several decades. Many of these people have mediocre ability, don't really do much, but once a position is created it is hardly ever eliminated.
Buildings and renovations. Ever seen a modern student dorm? They are luxurious compared to what they were in the 1980s. It's a constant competitive war as students will actually choose a school based on the living accomodations over the education.
Programs to assist students who should really not be there, and other programs that don't seem to recognize that college students are adults and should be expected to manage their lives by themselves. Do they really need the university to arrange coloring book time to help with the stress of mid-terms?
>don't really do much, but once a position is created it is hardly ever eliminated. Yup. This was true and was a definitely a benefit.
Source: 6 years working as IT for a public university.
For comparison, a mid-range preschool in the Bay Area costs about $30K/year, vs. $14K/year in-state tuition for UC Berkeley. If students get about 24 hours of instruction/week, for two 13-week semesters, that works out to about $22/hour. A nanny is about $25-30/hour, a therapist is $100+/hour, plumbers are about $200/hour, a lawyer can be $750-1000/hour. Given 20-30 students in the classroom, costs are not all that different from lawyers.
Schools in Europe/Asia are government-subsidized, like the public school system in the U.S, so you don't see the true cost.
US schools get far less from the state than Europe and Asia. You can find many school budgets online, including sources of revenue. So this is easy to check. [2] lets you look at country per capita spending on tertiary education - the regions you mention tend to spend significantly more tax dollars than the US does.
The result is that most European and Asian schools get funded by taxpayers, i.e., those not attending university end up helping pay for those who do, while in the US more of the funding is paid by people that attend schools.
Also, the US, as a result, also ends up with a higher percentage of adults with college degrees than those with state sponsored schools [1], since those places tend to make it harder to go to college, since taxpayer pressure on cost reduces opportunity.
[1] https://en.wikipedia.org/wiki/List_of_countries_by_tertiary_...
The link shows government spending per student as a percentage of GDP per capita, rather than overall government spending per capita. This figure can get distorted when there are more students in the system for any reason (such as due to private investment).
> since those places tend to make it harder to go to college, since taxpayer pressure on cost reduces opportunity.
This does not follow. Rather, having more students decreases the per-student government expenditure figure, even as the burden on the taxpayer stays the same.
As a percentage of GDP, US government expenditure on tertiary education is roughly in the middle of what various countries in Europe spend.
https://www.statista.com/statistics/707557/higher-education-...
That does not follow unless students cost zero to educate.
As more students enter, it costs more.
>As a percentage of GDP,....
And the US educates a larger portion of their population than most (if not all?) European countries. This is why using % of GDP is misleading, since the countries are paying for a different rate of educated people. The cost per student is more applicable, since as those other countries scale up the number educated will necessarily spend more, since on the margin people don't cost zero to educate.
This is why I pointed out the rates of education are different. Comparing a country spending 1% to educate 2% to one spending 3% to educate 10%, only looking at the 1% and 3%, is missing important information.
The remaining funding comes from the private sector (e.g. tuition fees).
Comparing the US with Germany, for example, the US spends 0.9% of GDP from public funds and 1.6% of GDP privately for a total of 2.5% of GDP, resulting in 44% of the population being tertiary graduates.
Germany spends 1.1% of GDP from public funds and 0.2% of GDP privately, for a total of 1.3% of GDP, and 27% of its population are tertiary graduates.
So as a proportion of GDP, Germany pays only about half of what the US does, but still manages to have three fifths as many graduates as the US, proportionally. That is better value for money spent overall.
Again, that does not follow. Adding students means more students will apply for government aid, so more aid will be allocated. Lots of places get paid $X per student from the govt - adding students adds public cost.
So yes, more students means more govt cost. Any student can apply for govt help, and if they meet requirements, they get the aid. They're not told sorry, you're number N+1 and we only fund N. You have to go private funded.
>That is better value for money spent overall.
Germany, (and pretty much all countries) pays far less for all advanced jobs. You cannot hire professors in the US for what you get them for in other countries (Baumol's cost disease, for example), so again this is not an accurate comparison.
>That is better value for money spent overall.
Such things are not linear - educating the last % would cost far more per person than educating the first 1%. Just like making something 50% burglar proof is not half the cost to make something 100% burglar proof. As you reach deeper into the pool of candidates they will take more effort, more time, and more money, per person to educate to some fixed level.
Paying for stadiums, sports teams and millions in coach salaries.
Like I said, no idea. Ok, maybe some idea.
U of M spent about $100,000 per student bed (not per room) on those renovations. They could have bought brand new, custom built, state-of-the-art suburban-sprawl McMansions and given every student their own bedroom (vs. mostly-shared dorm rooms) for less money. And had the old dorms left over.
Yes, that money was on UM's Housing (vs. academic) side. But you should not expect other non-classroom, non-academic spending (by any part of UM, or similar institutions) to be any less profligate.
PhD has no tuition, except in an accounting sense (you pay tuition, they pay you back as a stipend).
Also, US incomes are among the highest in the world, everything should seem expensive here compared to the typical European nation. Comparing to eg Japan or Britain doesn't work, our incomes are far higher. If you want to look at costs for the median or above, you have to reference Sweden, Finland, Norway, Switzerland, Denmark, Australia for comps. Simultaneously our costs are still too high even after you adjust for that (in things like healthcare and education).
In CS, graduate students often intern over the summer and can make up for some of the difference.
Tuition is paid by the university, typically from a grant.
1. Non-teaching admin positions, like vice presidents and associate deans of whatever, and all of their organizations and support staff.
2. Large bureaucracies that eat money and grow continuously.
3. Country club campuses and amenities.
4. Student services.
5. Legal departments and regulatory compliance.
Sadly, there are not a ton of universities that offer an online PhD in CS or Math, meaning that I was limited to what I could easily get to via train, at least in regards to schools in the United States. Eventually I found one school in England that was willing to let me do a part time PhD online, which is where I'm enrolled now.
How would you have time to finish? A full time PhD works a LOT. I can’t imagine doubling the time to a PhD.
Do it only if research really interests you - this was my case, so the sense of gratification from learning and finding out things offset many of the negatives. Also, having a patient advisor and good friends helped a lot.
I've started my part-time a month ago, and it's been pretty exhausting already, and I suspect it will get harder. How did you budget time to talk to family, or to do something for yourself to avoid burnout?
I'd often work out of cafes and libraries (I used to cycle between a small set of my favorites), because the change of atmosphere, and often the ambient activity, helps. Not to mention, if you're tired and trying to work from home, it's easier to get distracted (I could justify dozing off), than when you're at a cafe with your laptop in front of you and there's little else to do. I found that university cafes can be particularly helpful because you see a lot of people working around you.
Family and friends: I didn't really plan talk time with my parents or friends but was mindful we talk without too much of a gap in between (at least twice a week with parents). I used to reserve the times when I really needed to unwind for these chats. Note: I was single for most of my PhD, and got married when things were winding down.
On weekends, I would typically allow myself Sat morning off for a change of pace. On most weekends, I would drive off out of my normal ambit of travel, and work from a cafe/library away from home.
Of course, none of above advice worked during the pandemic- working on the PhD became relatively harder then.
Essentially, since I couldn't have changed the amount of work I needed to do, I substituted that lack of variation by constantly changing the atmosphere I worked in. That helped a lot.
(And if it's not, why are you doing both at the same time?)
On the other hand, all the history PhDs I know can't even get work at their own university.
It's not advertised and usually not recommended, but it's definitely possible. The key is to find a supervisor who's fine with it, don't even bother asking the administrators.
Of course, even doing a part-time PhD, you end up spending a fair bit of time studying (on the order of 4-6 hours/night).
When I was looking at programs, as I already had been working at a military lab since I was in HS, I asked every advisor I interviewed with if research work I was doing at the lab could be the basis of the phd if I wanted (i.e. to do the same thing as the labmate mentioned) and almost everyone I spoke to had zero issues with it, with the proviso that the work was appropriate for a phd.
At the end of the day, I did it all on campus (with many summers spent at labs or industry), but a good chunk of the work I did could easily have been done with proper guidance in an industry setting as well (though that's more in retrospect, I wouldn't have known how to sell the ideas to industry back then).