Where College Presidents Stand on Institutional Financial Health, Tuition 'Gimmicks'
By Allie Bidwell, NASFAA Senior Reporter
College presidents by and large feel confident in the financial sustainability of their own institutions, and of the business models of certain sectors. But many are starting to question the outlook for community colleges, non-flagship public universities, non-elite private nonprofit institutions, and proprietary institutions. They're also skeptical of institutions' attempts to address college affordability by implementing tuition resets or freezes, according to Inside Higher Ed's annual survey of college and university presidents.
The survey, which was conducted in conjunction with Gallup in early 2018 and polled more than 600 college presidents, found the majority of college presidents (63 percent) agree or strongly agree that their own institution will be financially stable over the next five years. Over the next 10 years, 53 percent of those surveyed answered similarly.
However, when broken down by sector and by time frame, the answers shifted. Community college presidents, for example were less confident about their institutions' financial sustainability over the next 10 years, with 19 percent disagreeing or strongly disagreeing their institutions would be stable.
College presidents overall also expressed other concerns about community colleges. According to the survey, just 44 percent said the community college business model will be sustainable over the next 10 years. They were even less optimistic about other business models. Only 25 percent said non-flagship public universities would be sustainable. Eleven percent said non-elite private four year universities would be sustainable, and 8 percent said the same about the for-profit business model. On the other hand, 93 percent said business models for elite private universities—defined as those with endowments above $1 billion—are sustainable over the next 10 years. Another 79 percent responded similarly for elite private liberal arts colleges, and 67 percent were confident in the viability of public flagship universities.
It may not come as a surprise then that many college presidents said they expect more colleges will merge or close in the next year. Thirty percent of the respondents said there will be at least one and as many as five closures in 2018, and another 40 percent said they would predict between six and 10 closures.
The presidents said they also expect to see an increase in tuition resets and freezes, as more colleges look to address concerns with high cost. Most presidents—67 percent—said they expect to see more resets at private institutions. Another 62 percent said they expect to see more tuition freezes at public institutions in 2018. However, the presidents expressed concern over these tactics.
"Most presidents do not view tuition resets as a solution for the long-term—63 percent strongly agree or agree that tuition resets are more of a gimmick than a viable long-term strategy," the survey said. "Presidents also express concerns about the effects of tuition freezes on public institutions. Seventy-nine percent strongly agree or agree that such freezes can be damaging to public institutions without additional state appropriations."
Stay tuned to Today's News for more articles in the coming days on insights from the Survey of College and University Presidents, including issues surrounding enrollment management and perceptions of the value of higher education.
Publication Date: 3/19/2018
You must be logged in to comment on this page.