Money and Finance
- The Barbarians Are At The Gate! Of Universities, Moats And Disruption! - By Aswath Damodaran
Link to: The barbarians are at the gate! Of universities, moats and disruption!In my last post, I attempted to break down the bundled product that comprises a college education into its component parts, and closed by arguing that the future of universities...
- Colleges Lose Pricing Power
The demand for four-year college degrees is softening, the result of a perfect storm of economic and demographic forces that is sapping pricing power at a growing number of U.S. colleges and universities, according to a new survey by Moody's Investors...
- The College-cost Calamity
WITH its leafy avenues and Gothic buildings, the University of Chicago seems a sober, solid sort of place. John D. Rockefeller, whose money built it, said it was the “best investment I ever made”. Yet Chicago and other not-for-profit American universities...
- Unlv President’s Somber Warning On Budget Cuts Moves Faculty To Tears
Found via the Mises Blog. To repeat Sir John Templeton’s 2005 prediction: “Most of the methods of universities and other schools, which require residence, have become hopelessly obsolete. Probably, over half of the universities in the world will disappear...
- Academic Bankruptcy - By Mark C. Taylor
WITH the academic year about to begin, colleges and universities, as well as students and their parents, are facing an unprecedented financial crisis. What we’ve seen with California’s distinguished state university system — huge cutbacks in spending...
Money and Finance
Inside Higher Ed: Tuition Revenue Down
The comments the article linked to below bring back to mind:
John Templeton (June 2005): “Most of the methods of universities and other schools, which require residence, have become hopelessly obsolete. Probably, over half of the universities in the world will disappear as quickly in the next 30 years.” (LINK)
Clayton Christensen (June 2013): “Historically there has never been competition on the basis of price. Colleges would compete by adding professors, enhancing programmes or building nicer facilities. So they competed by making institutions better. This initiates retribution [from other colleges] which make things better and better. And every step adds cost. So the cost of higher education has increased faster than healthcare. And there just isn't any more space in the budget to do this. So this year you are seeing, in a fixed cost environment, that colleges need to fill all their spaces. And there are fewer people applying. So this year for the first time there is real competition on price. For online universities, like Liverpool and the University of Phoenix, if prices drop by 60% they still make money. But for the vast majority of traditional universities, if the prices fall by 10% they are bankrupt; they have no wriggle room. So I'd be very surprised if in ten years we don't see hundreds of universities in bankruptcy.” (LINK)
After years of leaning on tuition increases to make up for declining state support, about four in 10 public universities now report tuition revenue is not keeping pace with inflation, according to a new report by Moody’s Investors Service.
Moody’s surveyed 114 four-year public universities and 173 four-year privates and found that negative trends -- inability to raise prices, declining enrollments and heightened regulatory and political pressure to keep down tuition -- are “now buffeting public universities with greater intensity.”
- The Barbarians Are At The Gate! Of Universities, Moats And Disruption! - By Aswath Damodaran
Link to: The barbarians are at the gate! Of universities, moats and disruption!In my last post, I attempted to break down the bundled product that comprises a college education into its component parts, and closed by arguing that the future of universities...
- Colleges Lose Pricing Power
The demand for four-year college degrees is softening, the result of a perfect storm of economic and demographic forces that is sapping pricing power at a growing number of U.S. colleges and universities, according to a new survey by Moody's Investors...
- The College-cost Calamity
WITH its leafy avenues and Gothic buildings, the University of Chicago seems a sober, solid sort of place. John D. Rockefeller, whose money built it, said it was the “best investment I ever made”. Yet Chicago and other not-for-profit American universities...
- Unlv President’s Somber Warning On Budget Cuts Moves Faculty To Tears
Found via the Mises Blog. To repeat Sir John Templeton’s 2005 prediction: “Most of the methods of universities and other schools, which require residence, have become hopelessly obsolete. Probably, over half of the universities in the world will disappear...
- Academic Bankruptcy - By Mark C. Taylor
WITH the academic year about to begin, colleges and universities, as well as students and their parents, are facing an unprecedented financial crisis. What we’ve seen with California’s distinguished state university system — huge cutbacks in spending...