As tuition fees in the U.S. continue to skyrocket, Republican-led states are raising concerns about the ever-increasing costs imposed by universities.
Indiana Governor Mike Brown is taking a direct approach to this issue. On June 24, it was announced that all 15 public universities in Indiana would freeze tuition for the upcoming school year at the governor’s request. While some politicians seem eager to go along with these educational institutions, they’re often hesitant to push for more affordable options for students and families.
“You have to be a bit entrepreneurial, really push the limits,” Brown remarked about his initiatives. “It’s too easy for a governor or state government to think there’s nothing that can be done, leading schools to believe they can endlessly raise fees.”
This agreement to maintain the current tuition rates for the 2025-26 and 2026-27 academic years follows a petition submitted to the state’s Board of Higher Education. As a result, institutions are expected to maintain prices at 0% increase.
In contrast, several prestigious universities like Cornell, Duke, and the University of Michigan have recently increased their tuition fees by over 4%. Students at the University of Minnesota may see an increase of 7.5% in the coming year.
“Healthcare and education aren’t really driven by market forces, so there’s no real incentive to keep costs down,” Brown explained. “When there’s a reliable source of revenue, it becomes too easy for schools to ignore expenses, and then parents and kids are led to believe that getting a four-year degree is the only path to success.”
According to Brown, some companies are beginning to recognize the declining value of a university degree, which has led them to drop the requirement for employees to have a post-secondary education. “Many businesses are now saying, ‘You don’t need that degree; they’re just too costly,’” he noted, highlighting a shift in how both parents and kids perceive higher education.
Interestingly, while universities often blame federal funding cuts or rising costs for tuition hikes, the reality frequently points to school administrators as the real drivers of these price increases. Tuition has been steadily rising for decades, outpacing inflation.
Between 1950 and 2013, while the student population grew by 92%, university administration roles surged by 702%. With federal student loans available, institutions have capitalized on this stability, allowing them to raise tuition prices, knowing students will secure loans to cover the costs.
Brown believes that a significant part of the tuition issue relates to how universities have managed their finances. “Federal Covid-19 funding has allowed schools to overextend themselves beyond their normal operations,” he commented.
In Indiana, Purdue University has become a model by keeping its tuition unchanged since 2012, demonstrating that it’s possible to maintain affordability. “We understood Purdue’s standards, and it has helped set the bar for everyone else,” said Brown.
Some universities offset reductions in in-state tuition by raising costs for out-of-state students or increasing the enrollment of international students. For example, Harvard University has a large percentage of foreign students while providing free education to many others.
Although Harvard has successfully navigated changes in enrollment policies, Brown pointed out that institutions that make excuses not to adapt will ultimately struggle. “If they want to attract out-of-state or international students, they’ll need to find a way to remain competitive,” he emphasized.
As the job market evolves, especially with a concerning number of graduates remaining unemployed, students are increasingly questioning the value of degrees in areas with limited job prospects. In light of changing dynamics within elite universities, employers are beginning to rethink their recruitment strategies.
Furthermore, Brown suggested that a reset may be necessary for institutions as students explore alternative educational routes. “I think private institutions are facing serious uncertainty right now. They must adapt to remain relevant, or they risk going out of business,” he warned.
He also mentioned that the focus might shift toward further improving K-12 education. “This could potentially reduce the demand for higher education,” he suggested. “But change often creates opportunities for innovation within the industry.”
