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So where is the money going? If the price of something is increasing faster than inflation then I expect something in return for the extra money I am paying li

So where is the money going? If the price of something is increasing faster than inflation then I expect something in return for the extra money I am paying like a bigger house, faster computer, whatever. I went to college in the 1990's. Are college students getting a better education or experience for all the extra money they are paying? I've seen my university's new classrooms, student center, library, dorms, etc. and they are way nicer than when I was there. I don't know if the huge upgrade in facilities is also happening at other schools.

wyldfire 4y ago
The extra money is going into administration. That includes salaries for non-teacher administrators and the fancy new real estate. Meanwhile they also cleverly decided to hire more part time teachers and fewer full time teachers, so they don't have to offer as much in benefits.
chongli 4y ago
The money is going into a bottomless pit of administrative and bureaucratic overhead. Universities are caught up in a zero-sum competition for the top students (and athletes). To attract these students they invest in massive infrastructure projects (new buildings and renovations), often with the support of earmarked donations from wealthy alumni. These new facilities must then be staffed with administrators and maintenance workers. Along with the new facilities come new departments and schools of X and Y which also need their own administration. The short answer is: administrative bloat. That's where all the money is going. Universities employ far more non-teaching staff than ever before. A large bulk of this staff is essentially dedicated to marketing the university to prospective students, a zero-sum competition with other universities. One of the big problems is that wealthy donors love to earmark their donations for big projects that carry their name. It's way less sexy to donate a bunch of no-strings-attached money that the school can use to pay salaries and keep tuition down. For donors who actually want to help future students, the usual route is named scholarships. But then, of course, scholarships also require admin staff to oversee them. And schools can have thousands of these scholarships.
- peteradio 4y ago
  Is the admin always on vacation? I applied to my undergraduate almamater for several positions and wasn't hearing back. I would call every week for about 6 weeks and received out of office messages for each person that entire time. It really gave the impression that people are collecting state funded salaries while doing very very little.
- dap 4y ago
  > The money is going into a bottomless pit of administrative and bureaucratic overhead. Universities are caught up in a zero-sum competition for the top students (and athletes). To attract these students they invest in massive infrastructure projects (new buildings and renovations), often with the support of earmarked donations from wealthy alumni. These new facilities must then be staffed with administrators and maintenance workers. Along with the new facilities come new departments and schools of X and Y which also need their own administration. > The short answer is: administrative bloat. I don't get it -- you're saying it's "bloat" and bad that the competitive market for students is causing universities to invest in themselves? You've actually convinced me that a large chunk of costs for nameless "administrators" might be going to useful purposes because investing in buildings and programs requires non-educational staff to keep things going.
  - chongli 4y ago
    It's a zero sum game. Bob the student can either attend Charles State or Derek University, not both. If Charles State spends a million dollars trying to attract Bob, Derek U spends a million and a half, and Bob decides to go to Derek U, Charles State has wasted a million dollars. Furthermore, the fancy new aquatics complex at Derek U may have been the deciding factor for Bob but it does nothing to make him better at electrical engineering, his chosen major. The building itself may have been donated by some magnanimous billionaire, but the water to fill the pools and run the showers, the chlorine and other chemicals, the electricity to run the pumps and keep the lights on, the lifeguards, the cleaning crew, the maintenance crew, the swim team coaches, management, HR staff, and so on are all part of the school's operating costs. It is these costs that are paid for by tuition money.
fastaguy88 4y ago
Is there really “extra money”? The chart of tuition does not tell us much about the total cost of a year of education, it just tells us the list price. In the 1970’s, the tuition cost at a state public institution was less than 10% of the total cost. Today, in state students pay about 50% of the cost, out of state more than 100% of the cost. Total Higher education costs have risen faster than inflation (as have grades K-12), but mostly not because of student loans.
nonethewiser 4y ago
> I went to college in the 1990's. Are college students getting a better education or experience for all the extra money they are paying? it's arguably worse

wyldfire 4y ago

The extra money is going into administration. That includes salaries for non-teacher administrators and the fancy new real estate. Meanwhile they also cleverly decided to hire more part time teachers and fewer full time teachers, so they don't have to offer as much in benefits.

chongli 4y ago

The money is going into a bottomless pit of administrative and bureaucratic overhead. Universities are caught up in a zero-sum competition for the top students (and athletes). To attract these students they invest in massive infrastructure projects (new buildings and renovations), often with the support of earmarked donations from wealthy alumni. These new facilities must then be staffed with administrators and maintenance workers. Along with the new facilities come new departments and schools of X and Y which also need their own administration. The short answer is: administrative bloat. That's where all the money is going. Universities employ far more non-teaching staff than ever before. A large bulk of this staff is essentially dedicated to marketing the university to prospective students, a zero-sum competition with other universities. One of the big problems is that wealthy donors love to earmark their donations for big projects that carry their name. It's way less sexy to donate a bunch of no-strings-attached money that the school can use to pay salaries and keep tuition down. For donors who actually want to help future students, the usual route is named scholarships. But then, of course, scholarships also require admin staff to oversee them. And schools can have thousands of these scholarships.

peteradio 4y ago
Is the admin always on vacation? I applied to my undergraduate almamater for several positions and wasn't hearing back. I would call every week for about 6 weeks and received out of office messages for each person that entire time. It really gave the impression that people are collecting state funded salaries while doing very very little.
dap 4y ago
> The money is going into a bottomless pit of administrative and bureaucratic overhead. Universities are caught up in a zero-sum competition for the top students (and athletes). To attract these students they invest in massive infrastructure projects (new buildings and renovations), often with the support of earmarked donations from wealthy alumni. These new facilities must then be staffed with administrators and maintenance workers. Along with the new facilities come new departments and schools of X and Y which also need their own administration. > The short answer is: administrative bloat. I don't get it -- you're saying it's "bloat" and bad that the competitive market for students is causing universities to invest in themselves? You've actually convinced me that a large chunk of costs for nameless "administrators" might be going to useful purposes because investing in buildings and programs requires non-educational staff to keep things going.
- chongli 4y ago
  It's a zero sum game. Bob the student can either attend Charles State or Derek University, not both. If Charles State spends a million dollars trying to attract Bob, Derek U spends a million and a half, and Bob decides to go to Derek U, Charles State has wasted a million dollars. Furthermore, the fancy new aquatics complex at Derek U may have been the deciding factor for Bob but it does nothing to make him better at electrical engineering, his chosen major. The building itself may have been donated by some magnanimous billionaire, but the water to fill the pools and run the showers, the chlorine and other chemicals, the electricity to run the pumps and keep the lights on, the lifeguards, the cleaning crew, the maintenance crew, the swim team coaches, management, HR staff, and so on are all part of the school's operating costs. It is these costs that are paid for by tuition money.

fastaguy88 4y ago

Is there really “extra money”? The chart of tuition does not tell us much about the total cost of a year of education, it just tells us the list price. In the 1970’s, the tuition cost at a state public institution was less than 10% of the total cost. Today, in state students pay about 50% of the cost, out of state more than 100% of the cost. Total Higher education costs have risen faster than inflation (as have grades K-12), but mostly not because of student loans.

nonethewiser 4y ago

> I went to college in the 1990's. Are college students getting a better education or experience for all the extra money they are paying? it's arguably worse