Economy, hiring freeze hurt MU's affordability

Last year's average student debt was $19,000.

By Sangeeta Shastry

Published Dec. 9, 2008

With the Dec. 3 release of the National Center for Public Policy and Higher Education's biennial report on the status of higher education came a failing grade for Missouri on the center's affordability meter, as well as every other state except California.

The center's report covers several categories in higher education, each defined with certain indicators specific to each group. The affordability indicators include families' ability to pay tuition, financial aid and the availability of low-priced colleges and students' reliance on loans.

Kathy Love, a spokeswoman for the Missouri Department of Higher Education, said the report highlights the need for a more reasonably priced education system.

"Most higher education institutions took a big budget cut after 2002, and they still have not regained financial footing," Love said.

She said MDHE would have to prove the efficiency of Missouri's colleges for funding.

"We need to show them that institutions of higher learning deliver programs that are useful to the economy, students and their families," she said.

A recent budget memorandum from Sen. Gary Nodler, R-Joplin, and Rep. Allen Icet, R-Chesterfield, indicated planned budget cuts in the coming year.

"The current status of our economy is quite volatile, and it is imperative that we remain ready to act in response to these conditions during the upcoming budget process," the memo stated.

MDHE is planning for general revenue core reduction scenarios of 15 percent, 20 percent and 25 percent, the memo stated. 

National Center for Public Policy and Higher Education focused on decreasing family incomes and the increased burden on lower- and middle-class families.

"In the future, cuts are just going to result in higher tuition costs, asking students and families to bear the brunt of cost," Love said. "Some college presidents are saying that it hits hard on middle-class families."

Leroy Wade is an assistant commissioner at the MDHE. He said the misalignment of financial aid priorities with public policy is also an issue. This new report, he said, may not have a bearing on education as a priority.

"Forty-nine of 50 states get an F," Wade said. "It's hard to point to what exactly we should be doing here to our leaders."

Wade said trends in financial aid can only be understood at an institutional level.

Student debt statistics, however, are similar to national trends.

"Sixty-five percent of Missouri's graduating class matriculated with debt, compared with 59 percent nationally, and the average student debt in 2007 was $19,000," Love said.

Graduate student Seth Graves said he is feeling the effects of increasing costs of college and the sharp economic downturn.

"It's part of the reason why I graduated in three years instead of four," he said.

Graves' parents split his college loan, which he says helped quite a bit, but he worked multiple odd jobs to pay the bills. Graves works as a research assistant for Professor Berkley Hudson, but because of the recent hiring freeze he cannot continue this job next semester.

"There are a lot of times here that I just close my eyes and go with it," Graves said. "The opportunities that you get as a student outweigh the costs."

Graves said there is a disconnect between education and finance.

"I think most people assume that it's built into the American education system that you are in debt when you're in college," he said.