HEARING RECAP: Owens Exposes Higher Ed’s “Best Kept Secret” on College Costs
WASHINGTON — Higher Education and Workforce Development Subcommittee Chair Burgess Owens (UT-04) led a hearing on deceptive pricing practices in higher education and reforms to bring honesty and transparency to students and families.
Click here or above to watch.
Rep. Owens opened the hearing by stressing the urgent need for clarity in college pricing and the impact hidden costs have on students, families, and taxpayers.
Rep. Owens: “The process of determining the true cost of college is clouded in mystery. Colleges and universities routinely advertise prices that bear little resemblance to what families ultimately will pay. … Yet when it comes to college degrees, an investment that can rival or exceed the cost of a home, students are left in the dark. … Students and families deserve honesty and transparency.”
Rep. Owens questioned Lee S. Wishing III, Vice President for Student Recruitment and Chief Marketing Officer at Grove City College, about tuition discounting practices, which Wishing described as higher education’s “best kept open secret.”
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Mr. Wishing: “It’s just remarkable to see how the whole industry knows this is happening. … Everybody knows, but the students and the parents. And we have a heck of a time cutting through that morass of misinformation to help students understand what’s going on.”
Rep. Owens also pressed Justin Draeger, Senior Vice President for Affordability at Strada Education Foundation, on which students are most harmed by unclear pricing systems.
Mr. Draeger: “Three groups stand out. First are low-income and first-generation students, they’re the least likely to have family experience to help them navigate a really complex system. The second are adult learners, they’re debt averse and want to understand the ROI the most. And third are middle-income families, who earn too much to qualify for maximum need-based aid but don’t make enough to pay the sticker price. … The bottom line is when students don’t understand the price, the most vulnerable ones are the ones who pay the highest cost, not just in dollars, but in lost opportunity.”
Rep. Owens closed by emphasizing the importance of shedding light on these practices: “This is [an] extremely important conversation, and for many of us to understand some of what’s happening behind the curtains is very, very enlightening to say the least.”
The full hearing is available to watch here.
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