Roundup: News You Need to Know, Wed., Dec. 20th

Top Public Universities Focused on Improving Rankings

Public universities are increasing selectivity and cost in order to boost their rankings, according to a New York Times article. These universities are competing to gain national status by recruiting high-performing, affluent, often out-of-state students who will improve their numbers and bring in more tuition money. In the process, access to public higher education is being lessened for low-income, in-state students. Some public flagships have attempted to achieve both goals by instituting financial aid programs that cover full tuition for low-income students, such as the Carolina Covenant at the University of North Carolina. The Times profiles the University of Florida, where the money from a recently instituted $1,000 surcharge will be used to hire more professors and reduce class sizefactors that influence U.S. News & World Report rankings. Dont be fooled, though. College admissions is a zero sum game, and we know of no university that devotes 100% of increased revenue from upper income, "merit" students to low-income enrollees.

Three Universities in Michigan Granted Delay on Affirmative Action Ban

A federal judge has granted three Michigan universities a short-term reprieve from complying with the states affirmative action ban. The universitiesthe University of Michigan, Michigan State University, and Wayne State Universityhad asked to delay the ban until the end of the current admissions cycle in order to ensure that all students were evaluated fairly. Mike Cox, Michigans Attorney General, issued a statement emphasizing that, in the agreement, the universities promised not to challenge Michigans "Proposal 2" in court on the basis of their academic freedom rights under the First Amendment. However, a pro-affirmative action group believes that the language of the agreement only prohibits future academic freedom claims in regards to this specific request, not broader challenges of Proposal 2.

ED Proposal to Limit Collection Fees for Defaulted Perkins Loans

According to the Boston Globe, the Department of Education is planning on proposing limits on collection fees for defaulted Perkins loans. A previous Globe article had documented routine collection fees of between 33 and 50 percent of the original loan balance. The report found that Northeastern University charged fees of up to 66 percent. The university has since recommended changes to its collection policies. Collection fees on defaulted loans administered by the Department of Education are capped at 25 percent. But because Perkins loans are managed by universities, they are allowed to set their own fees, as long as they cover only "reasonable" collection costs. The Department of Education plans on presenting a formal proposal around May 1st and, after seeking public comment, instituting the new policy by November 1st. These folks should be happy.

Unprecedented Building Boom at Universities

A feature article by Reuters investigates the recent building boom at universities in the United States. Reuters attributes the building boom to several factors: increasing enrollments, demands from students for better amenities, and the need to upgrade and expand high-tech, biomedical infrastructure. In 2006, new campus construction rose 18 percent. By 2009, new construction on university campuses could reach 34.5 million square feet. While many schools say they "really need the space," others are looking to improve students quality of life by building large recreation centers and condominium-style residence halls.