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One of the recently released project report deals with the current spending trends in colleges and universities. The Delta Cost Project report by Jane Wellman, executive director deals with the issue of lowering education quality due to financial crisis. According to her, the crisis in funding should not be used as a reason for reduced access or quality of education. The data is based on the IPEDS or the Integrated Postsecondary Education Data System. This system requires all educational institutions to provide data to the department of education, US.

The five years between 2002 and 2006 were highly significant as they saw the highest increase in student enrolments. There was an increase of 1.6 million students during these five years in all educational institutions excluding the for-profit and private sector. Data from this sector and the public community colleges which saw a great increase in enrolment was not taken into account due to inconsistent trends.

According to the report, funds roll into colleges through various sources including local and state appropriations, tuition fees, private gifts, federal funds, endowments and bond revenues. The report focuses on making the aspect of student tuition fee transparent and provides details on how the fee is spent. The report specifies that there can be two reasons for a rise in tuition fee namely, a rise in overall cost and a decline in revenue in certain other areas in the institution. This results in the increased fee being utilized for purposes other than for maintaining the quality of education, especially when local and state appropriations come down.

Statistics show that only 8 percent of the tuition fee increase goes towards improving quality of education and the other 92 percent towards adjustments in cost shifting. The report reaffirms that situation will worsen and result in parents and students staying away from institutions which do not reconsider their traditional spending outlook. There is a clear trend where the increased tuition fee amount is diverted elsewhere and students do not benefit in any manner from it. The day is not far when consumers will be tired of spending more for a product of lowered quality which offers no significant features or benefits.

Parents and students have till now been patient and putting up with the situation due to the high importance they place for higher education to secure a good financial future and livelihood. The reason for the decline in student enrolments today and the increase in drop out percentage is the financial crisis as well as the attitude of educational institutions. If colleges and universities are looking to attract students and parents on a continued basis, they have to rethink on their strategy, appoint knowledgeable and expert staff and improve drastically the quality of education. This is vital for the overall development of the country as otherwise, just in a few years’ time; the percentage of uneducated in America will decline.

In order to maintain its place in the world as one of the best education provider, higher education institutions in America have to wake up soon and start realigning and redesigning the system to adapt to the current requirements and needs.