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Roughly 70% of a typical college budget goes to compensate faculty and administration; but ironically, the real cost increases have not been in the teaching side of personnel costs but in the administrative side.Over the past few decades, colleges have managed to hold the line on instructional budgets by relying increasingly on instructors who are lower paid and receive fewer benefits—currently about 68% of faculty are non-tenure track.

And by doing that, we’ll be able to help push the conversation towards a new, more modern understanding of America’s middle class challenges—and spur fresh ideas for a new era. Too many young people and their families carry crushing burdens of educational debt.In fact more than 90% of the students who sign up for a MOOC drop out.Technology is no replacement for person to person teaching.This paper takes a dramatically different approach and instead focuses on reducing the actual price of a degree.It looks at the causes of rapid increases in the cost of a college degree and at innovations in higher education that could bring about a revolution in productivity and a dramatic reduction in the cost of a degree.

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