“New” Business Models for Higher Education: What, Me Worry?

So I’m listening to Marketplace Money (Sept. 8), and hear host Bob Moon lament that “the lousy economy is causing colleges to keep raising their prices or lowering their quality,” or both. A “vicious, unsustainable cycle–until now.” But here’s commentator Kim Clark with an “example of something done right.” The something right is Clarkson University’s adaptation of Milton Friedman’s old idea to let some poor students in without tuition, and collect a surcharge on their later earnings instead. Clarkson is admitting a few go-getters, free, “in return for a 10-percent share of their start-ups.” It’s investing in two, this year; Read More …

Deregulation Comes to Public Higher Education

At the moment of this writing, New York Governor David Paterson is playing a game of political chicken with the state legislature.  Paterson (a Democrat) is counting on the state senate to pass a budget that effectively deregulates tuition at the state and city universities, SUNY and CUNY.  At the CUNY campus where I teach, the cost of each year of college for full-time students who are residents of New York State is $5,050 ($4,600 tuition + $550 in fees).  It’s not much by today’s standards, but it’s not nothing either…which is exactly what CUNY used to cost.  Should Paterson Read More …