Most did not notice. This past year total student loans in America surpassed $1 trillion. Yep. That’s not a typo. That’s 1 trillion and rising. I would have used the numeral format but the number of zeros was just unmanageable in this short space. Consider this disconcerting news from Jeffry Sparshott at the Wall Street Journal:
“College graduates this year are leaving school as the most indebted class ever, a title they’ll hold exclusively for all of about 12 months if current trends hold. The average class of 2015 graduates, with student-loan debt, will have to pay back a little more than $35,000, according to an analysis of government data by Mark Kantrowitz, publisher at Edvisors, a group of websites about planning and paying for college. Even adjusted for inflation, that’s still more than twice the amount borrowers had to pay back two decades earlier (2015, May 8). ”
That’s why, at Williamson College, we’re working hard to provide quality higher education that’s affordable and accessible, right here in Williamson County, Tennessee. We’re borrowing some advice from the father of modern management, the late Peter Drucker, who suggested, success in the 21st century, would come from “price-based costing” rather than the traditional “cost-based pricing” (1999). This approach is not easy. But, embracing it provides the motive to resist runaway costs, which, in turn, drives up tuition.
Our plan: maintain control of costs. With that comes a secondary benefit: our students avoid excessive student loan debt.
Drucker, P. F. (1999). Management Challenges for the 21st Century. New York: HarperBusiness.
Sparshott, J. (2015, May 8). Congratulations, Class of 2015. You’re the Most Indebted Ever (For Now). The Wall Street Journal. Retrieved from http://www.blogs.wsj.com
Ed Smith, Ph.D., is President of Williamson College, a liberal arts Christian college located in Williamson County, Franklin, Tennessee.