“Congratulations, Class of 2014, you’re totally screwed”—that was the graduation message offered this season by Thomas Frank, Salon columnist and author of Pity the Billionaire. The average student-loan borrower graduating in 2014 is $33,000 in debt, according to the Wall Street Journal—the highest amount ever. And a new study of public universities shows that student debt is worst at schools with the highest-paid presidents.
The “most unequal” public university in America, according to the report, is Ohio State. Between 2010 and 2012 it paid its president, Gordon Gee, a total of almost $6 million, while raising tuition and fees so much that student debt grew 23 percent faster than the national average.
The only people on campus worse off than students with loans are the part-time faculty members—and they too were worst off at schools with the highest paid presidents. OSU, while paying its president $5.9 million, focused its faculty hiring on low wage part-timers, hiring 498 contingent and part-time but only forty-five permanent faculty members.
At the same time that the regular faculty has been shrinking, the number of administrators has been growing. During the period when OSU hired forty-five permanent faculty members, it hired 670 new administrators. A similar pattern is found throughout American universities.
The Institute for Policy Studies report, “The One Percent at State U: How University Presidents Profit from Rising Student Debt and Low-Wage Faculty Labor,” examined the relationship between executive pay, student debt and low-wage faculty labor at the twenty-five top-paying public universities. Co-authors Andrew Erwin and Marjorie Wood reported that money spent on administration at the highest-paying universities outpaced spending on scholarships by more than two to one.
“The high executive pay obviously isn’t the direct cause of higher student debt, or cuts in labor spending,” Ms. Wood told The New York Times. “But if you think about it in terms of the allocation of resources, it does seem to be the tip of a very large iceberg, with universities that have top-heavy executive spending also having more adjuncts, more tuition increases and more administrative spending.”
Why is this happening? “The motor force behind these trends is the hiring of ‘professional administrators’ whose primary commitment is to their own careers and advancement,” says William R. Schonfeld, former dean of social sciences and emeritus professor of political science at the University of California, Irvine (where I teach history). “They take jobs as stepping stones to other positions higher on the ladder.”