1. MATHEUS FALCAO, NILOUFAR SAYYADI, JACOB TANTI, HAROLD PIJPELINK, FILIPPE SILVA THE ECONOMIC CRISIS IN AMERICAN HIGHER EDUCATION

2. INTRODUCTION The crisis in a nutshell Causes for rising tuition fees Solutions to solve the crisis

3. ARE YOU BETTER OFF?

5. STATE BUDGET CUTS State budget cuts due to recession Direct effect on tuition cost Less State money than before recession Some states still lower budget yearly

6. STUDENT LOANS AS “FINANCIAL AID PACKAGES” The growth of student debts Poor students Time to pay

7. FINANCING COLLEGE More government money State money (Proposition 30) Federal money (Pell Grants) Income share agreements with companies A less demanding loan forgiveness program A more inviting job market

8. SPENDING FOR STUDENT LUXURY FACILITIES The symbolism of this is worse than the reality of it Investments in pools and gyms generally don’t have a positive effect on enrollment Campuses that make large investments in new facilities, usually have existing facilities that are in need of repair The big problem that higher education faces today is at the public side.

9. SPENDING IN ATHLETIC PROGRAMS College sports generate high revenue Less than 4% of the Athletic Programs are self- supporting Coaches at state universities are the highest paid public employees in most states Transfer from tuition revenues to athletics departments to fund deficits Students pay directly through special fees The greater the deficits of those athletics departments, the higher the tuition and fees must rise

10. STOP THE SPENDING Less focus on revenue Budget cuts all across the board Cultural change: a more frugal college More corporate sponsoring Government cap on private lending

11. RECAP 1.Tuition increases are not sustainable 2.Solutions are limiting loans and frugal spending 3.We need to change the way we look at college

12. WORKS USED Dynarski, Susan, and Judith Scott-Clayton. "Financial Aid Policy: Lessons from Research." The Future of Children, 23.1 (2013): 67-91. Norman, Charles H. "The ADA Examines Student Debt." Journal of Esthetic and Restorative Dentistry, 25.6 (2013): 365-366. Craig, J. Dean, and Samuel R Raisanen. "Institutional Determinants of American Undergraduate Student Debt." Journal of Higher Education Policy and Management, 36.6 (2014): 661-673. Felton, David A. "Will Student Debt Impact Our Specialty?." Journal of Prosthodontics, 22.6 (2013): 431. El-Khawas, E. (2011). The impact of economic crises on american universities: Lessons from the past.Higher Education Management and Policy, 23(2), 1-14.