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OUDAILY
For 100 years, the student voice of the University of Oklahoma
special edition: focus on finance
DEBT BUT NO DEGREE CAROLINE CORLEY/THE DAILY
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Steep costs, rocky finances force some out of school
ulius Janes was halfway through earning a mechanical engineering degree from OU when he hit a life changing road block. Today, he still gets calls about the money he owes to the school that kicked him out. As a sophomore in the fall of 2011, Janes owed OU roughly $10,000. As a full-time student and part-time worker, he found himself in a bind. He was withdrawn from classes for failing to make payments. “It kind of threw me for a loop,” Janes said. “At 19, you don’t know what to do.” Janes had moved to Norman from Houston after falling in love with OU during a high school road trip. He planned to get his bachelor’s degree, work a couple of internships and start a life in Oklahoma. But with no resources and no options, Janes had to put school on hold after his balance grew too high. “Moving back home isn’t an option,” Janes said, adding that his family is unable to help financially. The 22-year-old still lives in Norman, working two jobs just to make a living. But this has barely made a dent in his debt to OU,
PARIS BURRIS • @PARISBURRIS
still totaling about $8,000. Between his full-time job at Wagner Dining Hall on OU’s campus and a part-time job at Best Buy, Janes makes roughly $1,500 each month. This doesn’t leave much room for debt repayment. “That plus bills, blase blase, it’s not realistic,” Janes said, adding that rent for his two-bedroom apartment is $600 a month. “You can’t enjoy your money because it’s all somebody else’s,” he said. While Janes realizes he could possibly cut back in other areas to make room for small loan payments, he said the sacrifice would be too great. “I’m not going to give you my money to be homeless,” Janes said. It is rare for students to be withdrawn from classes for failing to meet financial requirements, and it is usually a last resort, said Matt Hamilton, vice president for Enrollment and Student Financial Services. “Basically, the student has proven time and time again that they cannot meet financial arrangements or cannot follow through on things that they say they’re going to do,” Hamilton said.
Before withdrawal happens, however, the bursar’s office attempts to help students by offering them counseling sessions, Hamilton said, adding that enrollment holds are typically the first action taken.
“College isn’t for everybody, but I do encourage college education.” JULIUS JANES, FORMER OU STUDENT Hamilton was unable to provide specific details about Janes’ situation. However, it is representative of issues across the nation: rising college costs and a lack of resources to get past such road blocks.
Ne a r l y 4 1 p e rc e nt o f stu dents who start college will not graduate, according to the U.S. Department of Education. While 65 percent of students who leave school plan to return, only about 38 percent do, according to a recent survey. A survey of students who left college revealed 54 percent of students said they needed to work to support themselves or their families and could not balance both work and classes. Another 31 percent say they could not afford college. While college costs vary widely, OU’s in-state tuition and fees are $7,695. Out-of-state tuition and fees are $20,469, according to the OU Fact Book. Additionally, room and board is $9,126. The four-year graduation rate at OU is 37 percent. While college enrollment has increased in the U.S., graduation rates have stayed stagnant. About 68 percent of Americans don’t have a bachelor’s degree or higher and 62 percent don’t have an associate degree, according to a U.S. Census Bureau study. Janes’ situation is met with a hint of irony, since money and job security were some of his motivations for pursuing engineering.
“I heard about all the money t h e y c a n m a k e ,” h e s a i d . “Engineers graduate with a job.” However, if Janes were to go back to college, which he cannot do until he pays off his debt, he would probably major in business or marketing, he said. “I’m a people person,” Janes said. “Thermodynamics and differential equations are not what I do ... It’s not in the cards for me.” Janes suggests “ridiculous” out of state tuition is a huge problem at OU. “I see so many Texas license plates here and so many people from Texas,” Janes said. “I feel like out of state tuition should at least be lowered.” Even though Janes’ experience has been less than ideal, he still sees the value of a college education. “College isn’t for everybody, but I do encourage college education,” Janes said. His advice for anyone pursuing college? “Know what you’re getting into.” Paris Burris
parisburris@ou.edu
Professor weighs in on OU tuition increase Faculty member explains college prices JESSICA JAMES @jessjames43
Throughout the United States the cost of higher education is climbing, and OU is not exempt. The bursar’s office and OU’s records show annual resident tuition increased by 50 percent and nonresident tuition increased by 64 percent from 2005 to 2015. What is behind this increase? According to OU economics professor Alexander Holmes, three things are to blame. First, he notes that a university is a service industry and, as such, its costs are impacted more by inflation. The average yearly inflation
over the past decade was 2.2 percent, according to the U.S. Bureau of Labor. To maintain its purchasing power the faculty must be paid slightly more each year; if they are paid the same amount while prices go up, they will have effectively taken a pay cut. “If you want to be competitive with other people, other universities, you’re going to be facing inflationary costs,” Holmes said. “It’s more dramatic in a service industry than it is in say, the manufacturing industry, because a service industry’s primary input is people.” OU records show the 2015 average instructional faculty salary was $93,267, up from $70,840 in 2005. “Overwhelmingly, the largest part of our budget is personnel costs,” OU President David Boren said at the last Board of Regents
meeting. The second cause of increasing tuition is the increase in the amount of students at OU. This year’s incoming class is the largest in OU history with more than 4,175 students. Holmes said these students cannot be accommodated without an increase in spending. “It’s a fixed production process,” he said. “If we fix the size of our classrooms in terms of how many students are in it, then you’re going to end up with pressure.” This pressure is relieved by raising the price or lowering the perunit cost by decreasing the quality of the service provided. Holmes gave larger class sizes, more group projects and less experienced instructors as examples of the latter, all of which he said have been implemented.
SUPRIYA SRIDHAR/THE DAILY
The third cause of tuition increase is reduced state funding. OU records state in 2005 state appropriations were $145,151,221, adjusted for inflation. In 2015 they were $137,111,445. Per student, state appropriations during the same period decreased from $7,182 to $6,773.
Most recently, the state’s revenue shortfall resulted in a $20 million cut to OU’s budget, which OU has decided to absorb through a retirement incentive plan and other personnel cost reductions. Boren see TUITION page 2