Is the College Experience Worth the Cost to Taxpayers?

by Doug Raymond

There was a time when it was perfectly acceptable in America to rent a house for most of your adult life.   But at some point, home ownership became more of a necessity than an option, a result of government programs that relaxed age-old lending standards,  leading to a rash of mortgage holders without the economic safety net that years of saving for a large downpayment provided.  Perhaps it’s time we evaluate whether the current push toward the necessity of a college degree might be a well intended but misguided notion as well.

The UNC Board of Governors has proposed a goal of having 37% of the adult population of North Carolina hold college degrees by the year 2025. With our current percentage standing at about 27%, the knee-jerk reaction would be to encourage even  more young people to attend college.  However, a look at the numbers indicate we have plenty of students attending, just not enough graduating.

Citizens bemoan North Carolina’s 23% high school dropout rate and rightfully so.  But how many know 71% of college freshmen fail to earn a degree in 4 years.  That’s right, only 29% of students entering college earn a college degree in the traditional 4 years.   In fact, it is so uncommon to wear the mortarboard & tassel in 4 years that most agencies have gone to a 6 year cycle when reporting rates. Unfortunately, that number is still an abysmal 47%.   (The numbers don’t include those that left college rolls due to death, serious illness or injury, military or missionary service and those few Bill Gates types out there who have career paths already charted)  When you realize that 20% of college students are done with their education before their sophomore year, it seems clear that there are large numbers of students  that either lack the proper motivation to earn a degree or lack the proper tools to achieve one.

In all fairness, some of our schools seem to be getting it right when it comes to graduation rates and first year attrition.  U.N.C. Chapel Hill, N.C. State, Appalachian State, and U.N.C. Wilmington hold the top graduation rates, some of the lowest first year attrition rates and also graduate a larger percentage of their students in 4 years.  The graduation rate at Chapel Hill is one of the best in the nation for public universities at 88%.   (Duke leads the state’s private colleges at 94% followed by Davidson at 91%)   So what can we learn from the top performing public universities that could help those lagging behind?

There is little doubt that strong admission standards play a part in the success and undoubtedly some of our state universities need to consider toughening their standards as well.  But in addition to strong admission standards, the top 4 universities are also in the top 4 when it comes to out of pocket tuition costs, while being in the bottom 4 in the ranks of students receiving financial aid. It seems the institutions where the students are paying more for their education out of pocket, while getting less from the government, are not only graduating at a higher overall rate but also in less time.

Am I saying that students who pay more of their own way are more intelligent than students who have most of their bill paid for by the government?   Not at all.   But I am saying it might be possible that students have different priorities when it’s more of their own money (or their parents) paying the bill.

And let’s not forget about the taxpayer money that students receive to go “experience college” for a year.

Students in our state’s 15 public universities who did not return after their first year racked up $87.8 million in federal, state, local & institutional grants and subsidies.   Add another $81.8 million for their share of college operating expenses and the total comes to an eye opening $169.6 million a year.   That’s quite a price tag to experience college life on the taxpayers dime.

So before we start looking toward increasing the number of college students, maybe we should take a long look at the admission standards and payment models of our top universities as blueprints for our lower performing institutions. Increased accountability, both academically and financially, might well translate into more students gaining a college degrees with an actual decrease in overall enrollment and costs. Or perhaps, if we really strive to be honest with ourselves, it’s time we ask if we are pushing too many unprepared and under-motivated students toward our universities where they have little chance for success.  Studies show that a college degree, not college attendance, is a strong indicator of future financial stability.   Let’s not confuse the two and leave taxpayers footing the bill for students to get the “college experience”.

Doug Raymond owns and operates Campaign General, a political consulting company, and is a panelist on NC SPIN.