EDITORIAL: How much is too much for college?: Our view

Feb 26, 2010 — The Arizona Daily Star

Feb. 26, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- How much is a college education worth? That's a question both the leaders of our state and the students who attend our three public universities need to answer.

They'll get a chance next Monday when the Board of Regents holds a hearing on proposed increases of 6 to 31 percent in tuition and fees.

The question -- How much is a college education worth? -- should be answered by each key player.

No. 1: What is government's role in underwriting a college education?

For at least two generations, Americans have viewed education as a public good worthy of taxpayer subsidy. This is true even though many people don't "consume" higher education; just over half of Americans age 25 and over have ever attended college.

The idea is that society as a whole benefits when individuals are better-educated, and the evidence certainly supports that. From strictly a cost standpoint, college graduates pay more taxes, use fewer government programs such as welfare and land in prison far less often. Over the long haul, countries and states with better-educated citizens have grown their economies faster, proving that education drives innovation, creativity and entrepreneurship.

But without much discussion, taxpayer subsidies are being cut dramatically -- especially by state governments. Data presented to the regents a few weeks ago shows that Arizona's contribution to operating revenues per full-time student has fallen from 73 percent to 58 percent over the past 20 years -- and that doesn't include the most recent state budget cuts. We wonder what sort of economic future Arizona expects if it continues to withdraw support for the universities it owns.

No. 2: How much should students pay for their own education?

As the cost shifts to individuals, students have to take a harder look at the costs and benefits. An often-quoted figure is that the average college graduate earns $1 million moreover a lifetime. But in the past few years, that's been debunked by plenty of economists. A 2008 study by a national organization of state universities put the present value of the future income gain at $231,000. The cost of college has to be subtracted from that.

If the UA implements its proposed 31 percent increase in tuition and fees next fall, that would put the full-price, four-year cost at about $40,000 (including books).

So now the average lifetime income gain drops to $191,000. There are also quality-of-life benefits. As a group, college graduates are healthier, live longer and enjoy better working conditions.

A degree remains a good personal investment in the future.

But not so fast.

No. 3: How is a student supposed to come up with that $40,000, up front?

In Arizona, 54 percent of undergraduates finish with no debt. But for those who must borrow, the average debt is up 12 percent to $19,110 over the past six years. A college degree remains a good lifetime investment, but tell that to a 25-year-old with a pile of college bills. Buy a house? A car? Start a family? All of those things become less affordable as the cost of college rises.

And climb it does. Mandatory tuition and fees at the UA increased an average of 9 percent a year between 2004 and 2009. That compares with average annual inflation of 2.5 percent over that period. All this at a time when household incomes are flat or down for all but top earners.

There's simply no question that the path Arizona is on makes a college education less affordable. Students and their families must re-examine their budgets to see what more they can sacrifice to pay for tuition. And even more donors must step up so schools can make larger financial-aid gifts to needy students.

No. 4: Short of increasing tuition, what are the universities doing to control costs and to make college more affordable?

The UA has had layoffs and hiring freezes. It's consolidated academic programs and eliminated others.

The universities and the regents have an ambitious plan to offer lower-cost options that will actually pull in and graduate more students by 2020. At the moment, though, it's hard to see how the funding -- from the state and from students -- will bring that vision to reality.

Arizona Daily Star

If you go

The public can participate in the hearing on tuition by appearing at any of nine locations across the state on Monday from 5 to 7 p.m. The Southern Arizona locations are:

--The main UA campus, Harvill Building, Room 211

--The Sierra Vista campus, public meeting room 203

--The UA Science and Technology Park, Building 9040; Room 2270

Newstex ID: KRTB-0014-42386320