What does the free market say when a business plan just isn't cutting it? Try a different plan, that's what. Texas Gov. Rick Perry's push for a $10,000 undergraduate degree at state colleges and universities comes from government, sure, but its nerves and neurons are classic free enterprise. Says the governor: Let's be willing to break a few molds; try something fresh; see what happens.
The result: new approaches at 10 Texas colleges to the enormous challenge of giving students first-rate educations at a reasonable cost. That's more than American college students in general are presently getting as student debt rockets skyward-$904 billion nationally last spring-in tandem with tuition and housing costs.
Half a century ago, a four-year University of Texas degree-food and housing included-could be had for $5000 (about $37,000 in 2012 terms). Try wrapping up a single academic year nowadays for less than 30,000 current bucks. By the way, median American income, last time the government counted, was $50,054. Feel like writing a check to UT-or another state school-for three-fifths of your annual income? The problem suddenly comes into focus.
Perry's challenge to the state's public universities and colleges was: See whether you can't devise a four-year degree program costing $10,000. Responses to the challenge range from awarding course credits as soon as students demonstrate competency in a subject (Texas A&M-Commerce) to a combination of on-line courses, bigger class sizes, and larger scholarships (Angelo State University).
Who says, eureka, we've found the key to academic cost-cutting? Nobody. What we can say is that we're working on it: innovating, trying, testing. Yes, and in a government setting! The governor has other options at his disposal, but for now he's started the rethinking process. And bringing in market principles is exactly the right place to start.
October 19, 2012