nelsonmuntz
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This is in response to your post above and the follow-up re kids staying local. For perspective, I live outside Connecticut and I have a kid that is starting to look at schools, so the parents talk a bit about what they're looking at, and we've been paying attention to where kids apply/enroll. I was kind-of shocked to see a lot of kids looking at the mediocre SEC schools. These aren't honor students. If I had to make a comparison, they were the kids that would have gone to bad private school or maybe a URI type in the past (no insult meant to those schools). Those kids are not going to Alabama, LSU, even Ole Miss (?!) because of any academic quality. I don't think they care one iota about the academic prestige. They talk about football games, fraternity/sororities and the weather. The only person that ever touched on academics just focused on the Alabama alum network and the huge flow of money the government (according to them it's state and fed) into the campuses.
My family has our demographic reasons for not even briefly looking at those southern schools, but I think you might be myopically focused on academics. There appears to be a separation between academic prestige and popularity of a school. I think if that cliff is coming, the SEC might be well positioned to survive. Interestingly, UConn gets a lot of applications from my town. More than the SEC schools, but only 0-2 enroll each year. Penn State and Maryland have a much higher enrollment to acceptance rate. I don't know if that is because of the Big Ten vs. Big East/Independent, or whatever other reason.
The kids you are talking about are probably targeting schools that are basically open admissions. These schools have to buy students. For example, URI, which has a reputation for being generous to good students, is already buying students, which kind of supports my argument. It is unlikely that a kid is going to go to Kentucky or Tennessee over UConn for anywhere close to the same price. A 3.8 gpa kid with 1400 SATs is not going to make a life decision because the school has an extra few weeks of warm weather a year. The kids that make that kind of decision probably don't have 3.8 gpas and 1400 SATs.
My point is that the entire university system in the United States is way overcapacity for the number of American kids that are going to be attending college by the end of the decade. There are only four ways to for a school to address the shrinking market:
1) Go hard after international students. The U of California system already does this successfully. I could see UConn doing this. It is unlikely that the SEC schools will go this route.
2) Raise the caliber of the university. How many SEC schools are going to be investing in professor salaries when the market is shrinking? SEC schools seem to be going the other way, taking away tenure and leaning more heavily on adjuncts. They were able to do this because the better schools were hyper competitive and at capacity. That is about to change.
3) Cut price. I see this happening regardless, but this is expensive for the universities, will result in schools needing more help from the state and alumni. Ironically, if the quality of students goes down, alumni donations will go down because the school is less likely to produce successful alumni that can donate back to the school.
4) Lower standards. I think this will happen regardless, but it is going to be flowing downhill. The Top 20's will take more students from UConn, and schools like UConn will take the better students that would have gone to the schools ranked 70-100. It will be Lord of the Flies for schools outside the Top 100. A lot of them will simply fail.