Unit 4: Possible Solution: Private Colleges Containing Costs Through Student Employment And Other Initiatives

Public colleges and universities are not the only institutions seeking ways in which to contain costs. The National Association of Independent Colleges and Universities (2009) noted that private colleges and universities are implementing and even expanding practices that are designed to control operating costs, enhance efficiency, and give students a quality education at the lowest price possible. To accomplish such a task, several private institutions are controlling the high cost of having permanent full-time employees by replacing them with students while other schools are using more creative methods.

Rhodes College

Some private schools are using students as employees to control costs. Rhodes College in Memphis Tennessee is a good example of this approach. The institution's Student Associates program has been in place since 2004 (NAICU, 2009). After completing a rigorous selection process, students are placed in areas related to their academic field of study. The positions help solve departmental needs at a fraction of the previous cost and results in improved services, extended programming, and greater student satisfaction. Rhodes College generally pays students staff wages while reaping the savings associated with having permanent full-time employees. During the third year, Rhodes College experienced a savings of $725,000 with 60 students involved. This is a great way for students to gain valuable training and experience while helping colleges to cut costs.

Juniata College and Marquette University

Other private colleges and universities have replaced some of their full-time positions with students. The entire information tech support operation at Juniata College in Marion Alabama, for example, is run entirely by its students (NAICU, 2009). Students manage, direct budgets, and conduct research and development for new software or products. Likewise, Marquette University supplements its finance staff by hiring student accounting interns to apply classroom knowledge while providing a needed service. The data on how much these institutions saved has not yet been made available.

Unique Cost-Containing Methods

Other private colleges and universities are looking for creative ways in which to control costs. Adelphi University, for example, has installed a geo-thermal heating system in its residence halls (NAICU, 2009). This system has reduced the university's energy consumption by at least 30 percent. In a different situation, Clark University changed its budgeting system to one that is more enterprising. That is, certain departments are treated as self-containing business. This new budgeting approach has yielded an annual savings of 33 percent. Finally, Emory University has restructured itself by consolidating departments. In order to obtain the lowest prices and greater discounts, the institution is also combining outside contracts (for various services) when possible. Emory has just implemented this initiative and there is not data on their savings at this point.

Conclusion

By nature, the culture of higher education is not that of cost efficiency. Private non-profit and for-profit institutions are not immune to this. A recent article in the Chronicle of Higher Education, for example, reported on the high cost of attending private colleges and universities. While there is still a great deal that can be done to contain the costs, at least private colleges and universities are looking outside of the box for possible solutions.

Reference

The National Association of Independent Colleges and Universities (2009). Campus affordability and cost cutting initiatives. Retrieved October 31, 2009 from http://www.naicu.edu/special_initiatives/affordability/news