Dive Brief:
- The National Association of Independent Colleges and Universities is calling on Congress to provide a five-year exemption to antitrust laws for all private, nonprofit colleges and universities.
- Higher ed leaders say the antitrust policies have resulted in the large spikes in the cost of college, as institutions compete for a limited number of students, often discounting at a loss, which drives the sticker price up for everyone else.
- College leaders say allowing them to consult with each other will help promote collaboration, rather than competition, which will lead to lower tuition discounts and more price stability. But dissenters say allowing such collusion will lead to higher-than-average tuition increases, and will disadvantage students who currently benefit from the discounting.
Dive Insight:
In a recent interview with Education Dive, American Council of Trustees and Alumni President Michael Poliakoff said increased collaboration between institutions is the only way the industry will survive. And while Poliakoff was referring mostly to sharing administrative costs and collaborating on research, it is likely this same idea that is driving leaders to say they can provide more benefits to students if they work together.
But several surveys of public trust indicate a widespread belief the industry will look out for its own interests above the interests of students, and some worry allowing institutions to confer will drive up administrative spending. Perhaps more than the rising cost of attendance, this public distrust of the industry is a huge threat to the higher ed complex. If students and families don't feel the value they're getting from higher ed is worth the investment, even those who can afford to pay the inflated prices will be less inclined to do so. And, while the majority of Americans still see higher ed as being good for the country, that number is declining — and it's heavily divided along partisan lines, with Republicans overall less convinced of its value.