A disturbing new report from IPS, Institute for Policy Studies, show a correlation between administrative salaries and student debt, the more administrators are paid, the more the students owe.
Other findings from the report called The One Percent at State U:
The student debt crisis is worse at state schools with the highest-paid presidents. The sharpest rise in student debt at the top 25 occurred when executive compensation soared the highest.
As students went deeper in debt, administrative spending outstripped scholarship spending by more than 2 to 1 at state schools with the highest-paid presidents.
At state schools with the highest-paid presidents, part-time adjunct faculty increased 22 percent faster than the national average at all universities.
At state schools with the highest-paid presidents, permanent faculty declined dramatically as a percentage of all faculty. By fall 2009, part-time and contingent faculty at the top 25 outnumbered permanent faculty for the first time.
Average executive pay at the top 25 rose to nearly $1 million by 2012 — increasing more than twice as fast as the national average at public research universities.
(Here’s more on the subject from Think Progress.)
The Higher A College President’s Pay, The Faster Its Students’ Debt Increases | ThinkProgress
Student debt is rising faster at state schools with higher-paid presidents, according to a new study by the Institute for Policy Studies.
In the study, “The One Percent at State U: How University Presidents Profit from Rising Student Debt and Low-Wage Faculty Labor,” co-authors Andrew Erwin and Marjorie Wood show that student debt rose by 10 percent between 2010 and 2011 at the top 25 universities with the highest executive pay, 43 percent faster than the national rate.
Public university presidents suffered fewer pay reductions shortly after the 2008 recession compared to other professions, the study concluded. Between 2009 to 2012, presidents at the top 25 universities saw their salaries increase by a third. Meanwhile, national student debt reached $1.2 trillion in 2012. Seventy-one percent of graduates in 2012 had student loan debt, averaging $29,400 per borrower, according to the Institute for College Access and Success.
“Top-heavy, ’1% recovery’ occurred at major state universities across the country, largely at the expense of students and faculty,” the study concluded. “Soaring compensation for college presidents has come at a familiar price: worsening inequality.”
From Around the Web.
From the web site, Texas Education.
Posted by Texas Education on November 20, 2008
The Dallas Morning News is reporting on something that we all should wake up and pay attention to: Texas college presidents’ pay rises with tuition.
As college tuition has risen and financial aid has lagged, paychecks for higher-education leaders in Texas and the rest of the country have continued to grow, according to a new national survey.
I believe in people getting paid for what they do, I won’t argue with that, but…and the article has some comments like:
The leaders of nine public universities and systems in Texas earned more than half a million dollars in 2007-08, the most recent year available, according to the survey by The Chronicle of Higher Education, released this week. And most of them received generous raises from the year before – as much as 30 percent.
Heads of private Texas colleges were well compensated, too, with four receiving more than a half-million dollars in 2006-07, also the most recent year available.
I can’t argue with this:
“Whatever happened to public service? The president of the United States makes less money than the president of the University of Texas,” said Zack Hall, a UT-Austin senior from Frisco who has lobbied for lower student costs.