Will University Students (Finally) Vote with Their Feet? Maybe!

"I’m hearing from friends frustration at paying out of state tuition for online learning classes. How far away do you think the breaking point is when colleges are going to make some concessions? Your uncle is writing a big check for Zoom medical school classes," asked my mother over text message.  

My answer: Far. 

Why?

Colleges aren’t going to make price concessions. Not because they would not want to consider it, but because most can not. They’ve pushed their financial model to the limits. They are over-levered. They are stretched to make payroll. If they start cutting tuition, will it really stem the bleed in terms of enrollment numbers? Unclear. It's simply too risky for them to make cuts and even more so to be the first one who does. 

Now, of course, the situation varies highly by institution and degree program. 

Cousin Lucy still wants to be a doctor, so she still has to go to med school. And medical schools have a very strong moat. 

Non-vocational degree programs where the accredited degree doesn't necessarily translate into employment is an entirely different matter.  But my answer still stands: Nothing will change until students and their parents vote with their feet. 

But! There are signs that might be happening.

Just today, Forbes reported that 340 or roughly 20% of first-year students at Harvard have chosen to defer. That's a big number from the top-ranked University that every other University aspires to be. 

Maybe, this fall, an avalanche of change will finally come to higher education. It is up to the innovative. The customer-centric. The prepared. To seize the moment and show a new way to do higher education with better outcomes at a lower cost. Passion economy, are you ready?

From Declarative Statements w.55 ‘Ablaze’