Hefty Tuition Hike at Public Universities Threatens Maryland’s Future

As students at Maryland’s public universities and community colleges head back to school this fall, they can expect to pay historically high tuition rates. Thanks to stagnating public investment, inflation-adjusted tuition at these institutions is higher than it has been in at least a decade, according to a recent report. This means more students may find they can’t afford to attend college and earn the degrees they need to succeed in today’s economy, and those who attend will have a harder time paying off their loans.

At public four-year universities in the state, tuition for the 2015–2016 school year was 5.4 percent higher than the previous year—Maryland’s largest tuition hike in more than a decade and the seventh-largest in the country. Tuition at community colleges rose more slowly, increasing by 3.3 percent, but it was still the second-largest increase at Maryland community colleges in the past ten years. At the same time, the state’s public investment in higher education increased by less than 1 percent per student. Following deep cuts during the Great Recession, the current, inadequate funding level has meant furloughs, unfilled vacancies, and years without even modest raises for university employees, which, in some cases, has led to reduced course offerings and reductions in upkeep of campus facilities. As these cuts inevitably take their toll on educational quality, Maryland students are likely paying more for less.

When tuition rises faster than wages, people who have borrowed money to invest in their future have a harder time making payments on their student loans. In Maryland, wages have not kept pace with rising tuition costs. Earnings for a typical Marylander with an associate’s degree declined by $2,900 from 2009 to 2014 (adjusted for inflation), while a typical bachelor’s degree holder lost more than $1,500, according to data from the American Community Survey.

This challenge is greatest for black and Latino borrowers, who often have fewer assets, which results in both higher borrowing for college and higher delinquency rates in paying back student loans, according to an analysis by the Washington Center for Equitable Growth. Inadequate public investment in education contributes to further disadvantages for Marylanders who historical have been excluded from opportunities – preventing them from seeking graduate education, some types of employment, and entrepreneurship opportunities.

Perhaps most troublingly, researchers have found that rising tuition discourages high school students from considering college, even when financial aid is available. Not only do students who decide against college because of rising costs bring home less income in adulthood, but the entire state economy does worse as well. In a modern, interconnected economy, communities with a well-educated workforce see higher productivity for everyone, with the societal benefits far exceeding the cost of providing education. When policymakers neglect public universities and community colleges, Maryland misses out on those gains.

Maryland currently has the country’s fourth-best educated workforce, with 38 percent of adults holding a bachelor’s degree. Policymakers should continue to improve on that legacy by investing in higher education rather than prioritizing short-sighted cuts that could harm our economy.