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I’VE LIVED IN OREGON most of my life. When I was growing up, agriculture, logging and fishing were the state’s dominant industries. In the 1970s and 1980s, the economy began transitioning from one based on natural resources to one rooted in technology, travel and manufacturing. A few decades ago, companies like Weyerhaeuser and Georgia-Pacific were among the state’s leading employers. These days, Intel is the largest, keeping more than 20,000 Oregonians gainfully employed.
But it isn’t just Oregon’s private sector that’s seen plenty of change. There’s also been upheaval among the state’s colleges and universities—the world where I’ve made my living for the past three decades.
In 2018, Marylhurst University, a small, private, liberal arts college—located in one of Oregon’s wealthiest areas—abruptly closed. The school had struggled financially for years. Student enrollment, which peaked during the Great Recession, had steadily declined as the economy rebounded.
Other small colleges are also showing signs of financial fatigue. At the beginning of February, the Oregon College of Art and Craft announced it, too, would be closing its doors. The college reported a nearly $700,000 operating loss in its 2017 tax filings. Earlier this year, Concordia University, a private college located in the greater Portland area, announced it would be discontinuing six of its degree programs. Concordia officials announced the change as part of an ongoing effort to stabilize the school’s finances. The university had reported a $7.9 million operating loss in 2017.
Public universities in the state are dealing with declining enrollment numbers. In 2018, officials at Portland State University saw the number of students registering for classes on campus drop by nearly 3%. Several other in-state schools reported similar declines. With the average cost of tuition and fees at private colleges topping $32,000 per year—and public universities charging between $9,000 and $24,000 per year—it perhaps isn’t surprising that schools are finding it more difficult to attract students.
I suspect “degree inflation” is beginning to alter the way both employers and high school students view the value of a college degree. Employers may be beginning to realize college graduates aren’t necessarily prepared to fill the jobs they’re creating. Young people may be beginning to realize they aren’t necessarily prepared to take on a large amount of debt to fund an education that might not lead to a high-paying job.
Intel recently announced they’ll be expanding their computer chip manufacturing facilities located in Oregon. Jobs at the facility, including positions like manufacturing equipment technicians, require a high school diploma and a few months of relevant experience. Such experience can be obtained by participating in a school robotics club, shop class or a variety of extra-curricular activities. With an average salary of $45,000 per year, entry-level manufacturing technicians at Intel would be making about $10,000 a year more than the average high school graduate.
Indeed, not all higher education institutions in Oregon are struggling. Mt. Hood Community College recently announced the formation of a new partnership with Subaru. Students at the college can enroll in an automotive technician program—a two-year, degree-granting program that comes complete with an internship at a local Subaru dealership. A recent New York Times article noted such partnerships between car manufacturers and colleges are becoming more commonplace as dealerships look for innovative ways to fill a plethora of auto mechanic jobs.
Mt. Hood Community College estimates that students enrolled in the automotive technician program will spend a total of $17,000 for tuition, fees and books. Because the students earn a salary while completing the internship portion of their education, their overall cost for the two-year program will likely be significantly less than that. With experienced, top-level mechanics earning salaries of up to $100,000 per year, the program should create a cohort of college-educated adults who have far less debt—and much better employment prospects—than many other college graduates.
Kristine Hayes’s previous articles for HumbleDollar include A Better Trade, as well as her series of blogs about her 2018 home purchase: Heading Home (I), (II), (III), (IV) and (V). Kristine enjoys competitive pistol shooting and hanging out with her husband and her two corgis.
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Great article. The sooner the bill comes due for these inefficient institutions, the better. The logical solution to reverse this and increase the quality of the product is to let the market have greater input by weaning them off tax payer subsidy. Propping them up just delays the inevitable at a huge cost. Another problem for many is the one-sided ideological bias in opposition to the free exchange of ideas that parents thought they were paying for.
For those bent on getting a four year degree, the best advice I got — and eventually followed with two of our kids — was to cover the basics at a community college then transfer. It enables a lot of mistake-filled teen learning where those mistakes are cheap. In the end your diploma still has the name of the degree granting school. I do wish this country had a stronger system — perhaps like Germany? — for guiding kids who would hate the kind of work which requires a degree and are brilliant at other things. So much untapped potential here.
What does the Government run educational system, K-Ph.D. do best? Brainwash students into the Socialist/Progressive agenda.
Take your Stone Age political biases elsewhere.
Although I’m pretty sure I come from the same side of the ideological fence as you, many others do not. I know I stepped in it a bit with my earlier post, but my goal was to convey as politely as I could one of the reasons that much of the modern system of higher education has lost my support, particularly at the college level. I try to stay on topic in an attempt to generate light with as little heat as possible. Your statement largely does the reverse and is unlikely to persuade anyone to change their mind.
I do have a few data points to add re: college and grad school. I went to a fancy private college (’81) and thought I’d do law and majored in political science. The prof’s were a mixture from the left and right, but respectful. Then I went into business for a year, realized I loved finance and got an MBA with that focus. A mix of left and right and once again respect for everyone. The one huge difference I noticed about the students in grad school is they were there on purpose. Very little parental influence. My favorite profs were temps from the business sector that moonlighted as teachers. They put up with zero crap – late on the assignment? Excuses were useless just like the real world. When the prof came in the room it was like the green flag dropping at a race. I loved it.
I also have (5) kids, each of whom went to college. Their experiences were such that I will never be involved with financing anyone going to a traditional college again. Nevertheless I am very hopeful about the alternative formulations of higher education for reasons Kristine nicely illustrated above.