Dr. Drumm McNaughton interviews Dr. Lucie Lapovsky of Lapovsky Consulting about higher education finances, including how low enrollment is forcing smaller, non-elite colleges and universities to shift cost functionality, drop majors, consolidate, reset their tuition, price-match the competition, embrace online learning and micro-credentials and retain students.
Podcast Highlights
- Operating online provides campuses with great economies of scale, such as increased amounts of sharing between different institutions.
- The low-cost college coalition Rise helps schools increase the number of available majors.
- Although most mergers benefit larger institutions, some acquisitions complement both schools, including smaller campuses, like when the specialized school Willamette University acquired the Portland College of Art and Design to strengthen its weak fine arts program.
- For a successful merger, presidents need to find a school that can offer some value to their institution by expanding their economies of scale. Merging can allow schools to eliminate costly programs since there will likely be an overlap in offerings.
- Resetting tuition can combat the false impression that higher ed is expensive since the average discount rate at private four-year schools is 54% to 55%. As a result, these institutions are offering financial aid at much lower levels.
- The University of Maine price matches the tuition of any other school in New England that a prospective student has been accepted into. Others offer prospective students admission to their institution before they even apply.
- More students believe online learning is reputable and fewer view living on campus as a requirement. There is also an increased demand for lifelong learning and early college options.
- Some schools are combating data that suggests that nearly 40% of students don’t graduate because of mental health issues by outsourcing services. But many of them choose not to get reimbursed since this could prevent students from seeking help.
To read the full show summary, visit: https://changinghighered.com/navigating-higher-ed-economic-challenges-insights-for-presidents-of-higher-learning/
Resources
Dr. Drumm McNaughton is a consultant for higher education institutions. To find out more about his services and read other thought leadership pieces, visit his firm’s website, https://changinghighered.com/.
The Change Leader’s Social Media Links
Keywords:#ChangingHigherEdPodcast #TheChangeLeader #HigherEdFinance
