BY BRIAN C. MITCHELL American colleges and universities operate on an unsustainable financial model. They are heavily tuition-dependent at all but the best-endowed institutions. In fact, of the more than 4,000 non-profit colleges and universities, the number that have the flexibility to rely on revenue, whether from endowment drawdowns or other sources, may be less…
BY BRIAN C. MITCHELL In our new book, How to Run a College: A Practical Guide for Trustees, Faculty, Administrators and Policymakers, Dr. W. Joseph King and I assert that the current operating model by which colleges meet their expenses no longer works. This financial crisis is best viewed through one revealing statistic – the…
BY BRIAN C. MITCHELL For the American consumer, there is a good deal of persistent confusion about the cost of higher education. Media reports usually point to the high “sticker price,” which does not reflect the actual cost of an education that most American families pay. On the public side, it fails to incorporate the…
BY BRIAN C. MITCHELL In our new book, How to Build a College: A Practical Guide for Trustees, Faculty, Administrators and Policymakers, Dr. Joey King and I argue that the sky is not falling around higher education. By and large, colleges and universities are nimble and resourceful institutions, most of which will prosper in the…
BY BRIAN C. MITCHELL Many public research universities face a dilemma: how to balance a commitment to educate in-state students with the value that out-of-state applicants contribute to the university. As Nick Anderson illustrates recently in the Washington Post, the facts are clear. Public (and private) research universities contribute mightily to a state’s economy, providing a…
BY BRIAN C. MITCHELL American colleges and universities are reaching for every means through which they might increase net tuition revenue. Net tuition revenue is the revenue that the college takes in from tuition after factoring in (i.e. deducting) all institutional financial aid. Net Tuition Revenue is Flat or Decreasing at Many Colleges The harsh…
BY BRIAN C. MITCHELL American higher education is a complex, decentralized, and interlocking network of institutions that provide education to a disparate group of learners. Historically, many of the fundamentals build around an applicant cohort of 18- to 22-year olds. The demographics of the 21st century predict that this group will not be able to…
BY BRIAN C. MITCHELL Swirling around the debates over the high sticker price of higher education is a deeper conversation about the broken financial model that most colleges and universities continue to use to pay their bills. While the largest universities have more options based on the scale of their endowment, fundraising prowess, and research…
BY BRIAN C. MITCHELL A hotly debated topic making the rounds in higher education now is whether American colleges and universities – public and private – face a round of mergers and acquisitions over the next several years. There are a number of reasons that the discussion of this topic had gained momentum. Tuition discount…
POSTED BY BRIAN C. MITCHELL The results of the most recent Tuition Discounting Study from the National Association of College and University Business Officers (NACUBO) are telling and worrisome. The study, released last week, examined how much colleges and universities awarded students in scholarship and grants and how deep tuition discounting has become. The NACUBO study…