Cody Smith

The issue of the growing higher education bubble is not a difficult one to understand. In fact, it is basically a simple example of the law of supply and demand. For several decades, the demand for college degrees has exceeded the available capacity of the higher education system. This has resulted in ever increasing tuition rates as universities can raise prices while still filling their classrooms.

The simple solution to lowering the cost of education is to increase supply. Yes, I say simple solution because there is an easy in inexpensive way to dramatically increase the supply of education.

When you look at what goes into educating a student you see that it is essentially the same as it has been for many centuries or even millennia. Getting an education means sitting in a classroom, having a professor teach, reading books, writing papers and taking tests. The true cost of these things is actually very low and is really just the cost of a teacher and a building for them to teach in. Both of these are limiting factors, however, and they have combined to limit the supply of education. However, thanks to modern technology, the impact of both of these limiting factors can be diminished.

We have already seen the introduction, growth, and acceptance of online education. Taking courses over the internet eliminates the need for, and cost of, facilities. So, why is college still so expensive? Because the supply is still controlled by colleges and is still limited to a point where it does not meet demand. So, how can the supply of education be increased? The answer to that question has to do with excess capacity within the ranks of current (and retired) professors. Does the current system utilize all of the capacity that is available? In other words, would professors (active and retired) teach more classes if they could get paid well for doing so? I believe the answer is yes!

Without any further dramatics, let me present a simple solution to expand the supply of education while still maintaining high standards. In my model, tenured professors (active and retired) would be given the means to enroll students of any accredited university in courses that they teach online. The professor would be paid directly by the students and would be able to determine their schedules, class sizes, and prices (this is where true competition comes into the equation). Universities would establish degree programs where the majority of classes are taken through the professors offering their courses.

The obvious problems are: 1) Why would a university create a degree program where they do not get to determine the tuition, and 2) Why would a university allow it's professors to offer classes outside of the universities programs and facilities? Question 1 is easily addressed by requiring a small payment from the student to the university for accepting the credits from each class taken from an outside professor. The second question has a similar answer, in that the university would require a small payment from the professor for each student enrolled in the professor’s classes.

These fees to the universities would shrink as more universities and professors began participating. As the supply of classes increased, lower prices would be necessary to attract students to the classes. The university offering the degree programs would have very low costs in administering those programs, they could sign up students anywhere in the world, and could therefore charge very lowl fees.

I understand that there are some degree programs that require certain facilities (like sciences, for example). And there are many good universities that would be hesitant to risk their reputation by granting degrees to students that never set foot on campus. In order to address these concerns they could require a certain amount of credits be taken on campus. Or, maybe they require freshman to take on campus courses, and then if their grades meet a certain benchmark then they are allowed to participate in the online program.

There are some administrative requirements that would have to be met by the universities or private companies. I envision a private company building and maintaining the online learning technology, signing up professors, checking credentials, maintaining course catalogs, processing payments and reporting grades to the university offering the degree program. Additionally, the university offering the degree would need advisors that would to the catalog and determine which courses meet their requirements.

So there it is. A simple solution that utilizes existing technology and resources that will dramatically reduce the cost of higher education. Any questions, class?

I will be releasing my second album sometime next year. This one has been in the works for a while but I want to take my time and do it right. We are about half way through recording.

For now, I decided to give away three songs from my first album. Just go to my music page and you can download them from there. If you don't mind, sign up for the email list so I can let you know when the new album comes out. Thanks everyone!