There has been a lot of press lately about the skyrocketing
cost of higher education (and the corresponding rise in student debt). One of
the “culprits” that proponents of deregulation love to point to is the
burdensome expense of regulation. This issue was brought to the forefront
earlier this year when the Chancellor of Vanderbilt University testified before
Congress that Vanderbilt spends $11,000 per student on complying with federal
regulations and accreditation costs.
That figure was immediately picked up and cited over and
over again by anti-regulation folks in Congress. Senator Lamar Alexander (R-TN), in an op-ed
piece in the Wall Street Journal said, “In one year Vanderbilt University
spent a startling $150 million complying with federal rules and regulations
governing higher education, adding more than $11,000 to the cost of each
Vanderbilt student’s $43,000 in tuition." The implication, of course, is
that if the federal regulatory burden went away, Vanderbilt’s tuition would be
reduced by $11,000 per student. But it isn’t quite that simple!
In an article posted on August 3, 2015, InsideHigherEd.com
pointed out at least one major flaw in the numbers being cited by Vanderbilt:
“Of the $146 million the university spent that year on
compliance, according to its calculation, $117 million went toward complying
with research regulations. Research at a major institution like Vanderbilt –
which received $473 million in federal funds for research in 2013 and is one of
this biggest conductors of federal research in U.S. higher education – is mostly
faculty driven. And the federal government picks up part of the tab for
compliance, with additional funding to cover the overhead costs of university
research.”
Now comes a follow-up study that expands on the one cited
earlier this year. This one looked at data from 13 institutions and through
extrapolation, it concludes that collectively they spend $27 billion a year
complying with federal regulations. Of course that $27 billion is the headline
but when totals for research activities and other federal regulations governing
all businesses get subtracted, what remains ($11.1 billion) is said to be
specific to complying with federal regulations related to higher education and
is estimated to include $6 billion for accreditation – $3 billion for regional
and $3 billion for programmatic.
Of course this new report is already causing controversy and
the numbers will be “sliced and diced” as the political battle between pro and
anti regulation proponents unfolds. But any way you look at it, there’s no
question that regulation and accreditation cost money. But rather than looking
just at costs, it will be important that policy makers look also at the benefits.
And it will be our job to make sure that they understand the value of quality
assurance through accreditation.