New Hampshire Legislators Examine Student Loan Crisis

There is broad, bipartisan recognition of the fact that college has simply become too expensive for the average student to afford. New Hampshire legislators recently introduced House Bill 1108, which seeks to examine how runaway college spending serves to increase student debt. In ACTA’s 2021 study, The Cost of Excess, we found a clear and significant correlation between increases in college spending and increases in tuition, suggesting that institutions frequently rely on tuition revenue to fund wasteful projects. In addition, we found that when schools were faced with a loss of revenue and were given a choice between cutting spending or increasing the cost of college the majority chose the latter. From our study: 

And make no mistake, this was a choice. Schools could have moved to offset the loss of funds by drawing down the number of nonessential staff, tapping into endowments, cutting pay for employees making more than $100,000, suspending construction and renovation projects, and reducing funding for non-self-supporting campus expenses like athletic facilities. Instead, the decision to continue spending at similar levels clearly contributed to the rising cost of higher education and has proven to be a wholly inefficient way to ensure that students graduate in a timely manner… Institutions need to prioritize access instead of excess by scrutinizing nonessential spending and performing long-overdue cuts with an eye on efficiency and lowering the overall cost of a college education. 

Read ACTA’s letter of support for New Hampshire’s new bill below: 

Dear Representative Belcher:  

I wanted to reach out to you in light of your recent work on House Bill 1108. As a nonprofit organization committed to the preservation of academic freedom, excellence, and accountability, the American Council of Trustees and Alumni (ACTA) appreciates your efforts to establish a committee to study the role of colleges and universities in contributing to the student loan crisis. We share your sentiment that the cost of earning a four-year degree is too high and institutional spending must be scrutinized.  

In this spirit, I would like to offer our aid if there is any way we can be of assistance. Enclosed for your consideration is a copy of The Cost of Excess, a comprehensive analysis of college spending and its impact on tuition and student success. Our findings show that, since the Great Recession, institutional spending has correlated with both increases in tuition and net cost for students. We also found that spending had a minimal impact on graduation rates.    

For over 25 years, ACTA has worked with trustees and public officials across the country to ensure that all Americans can receive a high-quality education at an affordable price. We have testified before various state legislatures and commissions in states including Florida, New Jersey, Alaska, Georgia, Montana, Texas, Pennsylvania, North Carolina, and Ohio, on matters such as curricular quality, academic assessment, and institutional accountability.  

If there is anything we can do to help your efforts to support HB 1108, or in any matter in the future, please do not hesitate to reach out to me directly.   

We are immensely grateful for your commitment to American higher education, and I look forward to hearing from you. 

Armand B. Alacbay  
Chief of Staff & SVP of Strategy