Cross & Crescent

In this month’s feature about Rhodes College President Dr. William E. Troutt (Union 1970), we did not have the opportunity to completely report about his insights and creative ideas in regard to higher education costs.

As reported in the article, Troutt is well-known nationally for his contributions to higher education, and he has appeared before Congress and on CNN expressing his opinions and recommendations.

He was named one of the nation’s most effective college presidents in a national study funded by the Exxon Foundation, and has served as chairman of the American Council on Education and the National Commission on the Cost of Higher Education.

In addition, he is currently chairman of the American Council on Education and is a former chairman of the National Association of Independent Colleges and Universities

Innovative Program Example

Unlike traditional work/study programs, one of the innovative program Trout has implemented at Rhodes is the nationally-recognized Rhodes Student Associates Program.

This program was established to give students meaningful work experiences on campus while defraying a portion of their college costs. In addition, there is a cost benefit for the college as the highest costs today for colleges are with salaries and benefits.

“At a college like Rhodes having small classes is really at the heart of what we do to support students,” he says. “So it’s difficult to think about how you might have a faculty that’s smaller than you have now to save costs and then you would be hurt on the quality side. But think about what you might be able to do on staff costs and be able to moderate costs on that side.”

What makes the Student Associates Program at Rhodes unique is the ability to offer a higher salary to the students, plus the real-world applications, which then translates into true resume building experiences.

“What we’ve done at Rhodes is create really I think an amazing program,” he says. “We will pay you very good wages…think of going through college with kind of an internal internship where you have responsibilities as a student.”

For example, much of the work done on the Rhodes website is done by students. These jobs will help the students make better decisions when they graduate and move into the real world.

“Think of a resume for a liberal arts graduate who’s done all these sophisticated things…taking on more responsibilities, also helped finance their education,” Troutt says.

For colleges, it is much more efficient to pay students well than to have a staff person with healthcare benefits, which is one of the big drivers of costs for everybody.

Higher Ed Economics

Higher education economics is a concept that most people often do not understand because it’s so different from the world of business.

“In the world of business, price equals cost plus profit.” he says. “In education, it’s fundamentally different. Price equals cost minus subsidy. It’s been very difficult for policy makers and the American public to really understand it.”

Troutt has been on a personal mission through Congressional testimony to help raise this issue. He also works very hard on this issue at Rhodes.

“I’ve tried to both articulate the cost picture to policy makers and Congress, been on CNN in different venues to try to explain to the American public better what the challenge is….but I’ve also tried to set a good example here at Rhodes of what we might do innovatively to make education here affordable and available to the best students,” he says.

For parents, the cost of higher education can be a complicated issue and often leads to a lot of frustration. Trout says it is important for parents to have better insight into what actually happens and where the money goes.

“The reality is most colleges put their money in the right places,” he says. “It mostly goes to students one way or the other.”

For the foreseeable future, all colleges are searching for new and better ways to make the financial aid system work more efficiently and effectively for American families.

“It’s a topic I’m very devoted to,” Trout says.