Jul 222013
 

Owen Courreges

The outlook wasn’t brilliant for Loyola U this year,
Freshmen enrollment was down 30 percent, with layoffs now to fear.
And then when Liberto quit in shame, and Kaskel took his place,
A sickly silence fell upon each ‘n every alumni face.

All of Uptown began to rise their voices in despair, as the rest
Clung to that hope which springs futilely in the human breast;
They thought, if only Casey could recruit for the freshman class  –
We’d put up endowment money, now, and shove it up Tulane’s smarmy [expletive deleted].

The sad truth for Loyola is that there is no “mighty Casey” waiting in the wings.  Freshman enrollment has plummeted by nearly a third with only a short time left until the Fall semester begins.  It appears that the main culprit for the massive shortfall was an adjustment to Loyola’s financial aid offers.  Apparently, Loyola’s high tuition left little margin for error with respect to financial aid.  Prospective students today are savvy; their market responds quickly.

There were other factors involved.  Loyola chose to make its tuition packages less attractive at the same time as it has been tearing up its campus with renovation projects.  Campus tour guides were left giving the pathetic spiel: “Our tuition might be high, but at least our campus will be pretty after all this massive, noisy construction is over! Wait, where are you going?”

Loyola’s obvious incompetence is only part of the problem here.  If colleges held all the cards in the education marketplace, it wouldn’t matter whether they made blunderous miscalculations of this sort.  For decades, this has actually been the reality.  Following World War II, the federal government began to massively subsidize college tuition and student loans, and it worked out because hey, the country was rich and a college graduate could get a good job, perhaps throw on a few bucks to the ol’ alma mater down the road.  The sheer size of the baby boom generation, creating a huge demand for college degrees, was also a huge factor.

Those days are gone, and they probably aren’t coming back.  The country managed to limp along well enough before the last major recession, but society is (thankfully) sheepishly starting to acknowledge that perhaps there are a few too many bartenders and waitresses with liberal arts degrees that are saddled with a crippling amount of student loan debt.

Loyola’s problem is that the margin-for-error with recruiting efforts has shrunk precipitously.  One day Loyola was thinking about all the ways it could stick it students with higher tuition and fees, the next it realized it should have been cutting prices to stay competitive.  Although Loyola has managed to limit the damage, they are still a day late and 9.5 million dollars short.

You can’t really blame Loyola too much.  Universities, especially those of the old, established variety, often aren’t used to acting like real businesses.  Alas, only a few universities can avoid it these days.  Sure, Harvard could probably replace it’s the faculty with denizens of local homeless shelters and still turn a profit, but most schools aren’t similarly situated.  They aren’t used to lean times and a national market for students.

The evidence is everywhere.  Over the past ten years average tuition and fees at private, four-year colleges have increased 26% past inflation (at public universities, the situation is even worse at 66% past inflation).  Meanwhile, the number of administrators at universities has been exploding, vastly outpacing any growth in faculty.  Johns Hopkins University Professor Benjamin Ginsberg refers to this trend as “administrative blight.”  Although universities have generally avoided gutting their faculties, they have instead chosen to save money by relying heavily on adjunct professors paid pennies on the dollar relative to full-time, tenured professors.   It’s a great time to be a bureaucrat in higher education.  It is a terrible time to be a student or a new professor.

The final ball actually dropped as of the beginning of this month.  On July 1, 2013, student loan rates doubled from 3.4% to 6.8%.  The conventional wisdom is that the higher rate is still a “good deal” for students, but it still changes the calculus when deciding whether to go to college and study kinesiology, or just go for that correspondence course in air conditioning repair.  Lower-ranked schools with higher tuition remain the most vulnerable.

It remains to be seen how Loyola will deal with this problem.  Ultimately, they will be better off if they have both the will and skill to trim the fat and slash tuition.  They might even need to prepare for a smaller student body.  Alas, even that may not be enough to keep their finances in order.  Even mighty Casey may still swing out.  And if that happens…

Oh, somewhere in the Big Easy, the finances are not ill,
A Jazz trio is playing blithely, and wallets are full of bills,
And somewhere alumni give, and somewhere students mass ,
But there is no joy in Loyola – mighty Casey’s out on his [expletive deleted].

Owen Courrèges, a New Orleans attorney and resident of the Garden District, offers his opinions for UptownMessenger.com on Mondays. He has previously written for the Reason Public Policy Foundation.

  11 Responses to “Owen Courreges: Loyola at the Bat”

  1. Sorry to sound rude, but I find this rude and hurtful.
    If yours and other weekly UM bloggers main goal is to gain clicks and comments from fools like me (this is my last on this), go back to the basics.
    Do gun rights for unborn immigrants- and or can their transgendered children legally marry aliens?
    Write anything with the word gentrify-
    or Blame the Mayor for (fill in the blank)…
    I value Loyola- and
    http://academic.regis.edu/ghodne/Orientation/themes.pdf
    they are- and will be just fine.
    Best from Freret,
    Andy Brott

    • Hey Andy, I totally agree with your statement. But don’t apologize for sounding rude. This wannabe pundit has been using the UM for self-promotion for months, making offensive statements about our community. UM is at its best when it highlights people like you that are actually contributing to Uptown and making it a better place. But for some reason it has become a forum for this Lionel Hutz to sow discord with dishonesty.

      Keep up the good work on Freret!

      • Yet another,

        Seriously, your obsession with me and the trolling it produces has become profoundly creepy. You made your point; you don’t like me or my viewpoints. Everybody gets it. You can stop fixating now.

        • I am obsessed with making Uptown a better place to live. That means giving props to people like Andy and calling out people whose actions hurt our community. Your over sized ego may think this is about you, but unfortunately you are just one of a number of people who are holding Nola back.

          • Yet another,

            Heckling me in the comments to virtually every column I write cannot be explained away with some empty verbiage about your supposed civic mindedness. You’re not even here to address the issues I raise anymore; you’re just insulting me over and over.

            It’s creepy. Please stop being creepy.

          • Would it seem less creepy if there were more people joining Yet Another in pointing out that your consistently atrocious columns are a blight? I’ll be happy to help out there.

          • will_k2,

            Not really. Actually trying to argue points regarding the issues I’m addressing is fine and not at all creepy, even if the presentation might get my dander up. Throwing out exchangeable drive-by insults in response to virtually every column, conversely, is pretty creepy.

    • Andy,

      I didn’t mean to be rude or hurtful, and I do want to emphasize that this problem isn’t restricted to Loyola. It’s a problem throughout higher education. I don’t believe Loyola is on the verge of failure or anything, but this was a major blunder and it doesn’t bode well for the future.

      • blun·der
        [ blúndər ]
        1. make serious mistake: to make a serious or embarrassing mistake as a result of carelessness or ignorance
        2. move clumsily: to stumble or move clumsily
        3. act in confused way: to act or speak in a manner that is clumsy, ignorant, or thoughtless

        Hi Owen,
        Choose your words wisely. Perhaps a review of the following would help you prevent such distortion in the future.
        http://www.spj.org/ethicscode.asp
        Kellie Grengs
        Department of Theatre Arts
        Loyola University

        • Kellie,

          What? At Uptown Messenger I’m an opinion columnist, so yes, I’ll call things “blunders” when they are, in my opinion, blunders.

  2. As a Loyola alumni I have to say that the cost of attendance is outrageous. I would never advocate that my children attend Loyola at that price. A large part of the reason that I chose to attend Loyola was due to the very competitive price and grant/scholarship opportunities which actually made the cost comparative to in state tuition at a public school, which was wonderful as I got a small school private education at a reasonable price. That no longer holds true and I am ashamed and outraged as an alumni. I will certainly not support any Loyola fundraising efforts as long as this trend to gouge the students while faculty and administration continues to land on the front page for all the wrong reasons continues.

    Loyola isn’t a Tulane or an Emory type university, price is huge factor in attracting students. Get your act together Loyola.

    I also have to laugh at the professor commenting on this blog. Was it not a careless mistake to raise tuition to the point that it killed attendance? I would say it was. I guess the quality of the education hasn’t risen with the price.

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