Rising Student Debt Linked to Higher-Paid University Presidents
Writer: Mike Randall
Editor: Lillian Guevara-Castro
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A new report published by the Institute for Policy Studies (IPS) finds student debt is rising faster at state universities with the highest-paid presidents.
In addition, these schools have higher numbers of low-wage adjunct faculty labor – meaning part-time and contingent instructors.
The report, titled “The One Percent at State U,” is the result of a study looking at the 25 public universities with the highest executive pay when compared to the nationwide four-year university average.
It examined statistics from 2006 through 2012 and found a disproportionate compensation structure for executives at the top 25 schools.
Points of interest:
National student loan debt continues to rise, registering $1.2 trillion in 2012.
• The sharpest rise in student debt levels occurred in schools where executive compensation rose the fastest.
• At state schools with the highest-paid presidents, administrative spending outpaced scholarship spending by more than two to one.
• Part-time adjunct faculty grew 22 percent faster at schools with the highest-paid presidents when compared to the national average (adjunct faculty costs the university far less).
• Executive pay at the top 25 schools increased more than twice as fast as the national average to nearly $1 million on average.
So where does your alma mater’s president rank?
| Rank | Institution | Total Compensation Awarded to Top Executive of Main Campus FY 06 — FY 12 | Average Yearly Total Compensation in 2012 dollars FY 06 — FY 12 |
| 1 | Ohio State University | $10,223,733 | $1,533,286 |
| 2 | Pennsylvania State University | $7,658,372 | $1,134,067 |
| 3 | University of Delaware* | $7,083,950 | $1,089,663 |
| 4 | Auburn University | $6,237,411 | $925,941 |
| 5 | University of Virginia | $5,774,436 | $873,488 |
| 6 | University of Michigan | $5,659,043 | $858,333 |
| 7 | George Mason University** | $5,636,489 | $844,265 |
| 8 | University of Washington | $5,404,009 | $821,315 |
| 9 | Virginia Tech | $5,004,070 | $758,098 |
| 10 | University of Texas | $4,733,280 | $716,644 |
| 11 | University of Central Florida** | $4,712,161 | $714,369 |
| 12 | University of Minnesota | $4,425,889 | $669,874 |
| 13 | Arizona State University | $4,382,001 | $664,503 |
| 14 | University of Florida | $4,327,277 | $656,238 |
| 15 | Temple University | $4,302,599 | $651,943 |
| 16 | Washington state University | $4,301,950 | $652,655 |
| 17 | Rutgers University | $4,289,298 | $653,821 |
| 18 | University of Kentucky | $4,284,203 | $647,349 |
| 19 | University of Houston | $4,273,040 | $648,216 |
| 20 | Georgia State University | $4,199,291 | $641,036 |
| 21 | Pittsburgh University | $4,136,562 | $628,210 |
| 22 | Georgia Institute of Technology | $4,116,997 | $625,918 |
| 23 | University of Georgia | $4,088,151 | $620,958 |
| 24 | University of Connecticut | $3,925,372 | $595,586 |
| 25 | Florida State University | $3,694,233 | $561,876 |
According to The Institute for College Access and Success (TICAS), student loan debt reached $1.2 trillion in 2012, overtaking total credit card debt for the first time in history.
And with part-time adjunct faculty at universities making an average annual wage of just more than $22,000 per year, we know the increasing costs aren’t going to them.
So one has to ask — are university professors worth the salaries they receive?
*FY 2009 compensation was unreported. Total compensation for FY 06 – FY 12 reflects an FY 09 estimate based on the yearly average of total compensation reported for Patrick Harker in FY 08, FY 10, FY 11, and FY 12.**FY 2006 compensation was unreported. Total compensation for FY 06 — FY 12 reflects an FY 06 estimate based on average of 23 other top 25 compensation figures for FY 06. Given subsequent year totals at this institution, the FY 06 — FY 12 total is likely an underestimate.Photo credits: Flickr/Backbone Campaign; credit.com
