Student debt linked to rising school administrator pay?

Student debt has increased at a record rate in the past few years.

Also, compensation for university leaders—presidents, provosts, and administrative faculty—has increased at a record rate.

According to a Institute for Policy Studies paper:

At the 25 public universities with the highest-paid presidents, both student debt and the use of part-time adjunct faculty grew far faster than at the average state university from 2005 to 2012.

The tenuous connection is likely due to executive compensation requiring larger budgets, which are funded with higher tuition rates requiring students to take out more loans and increase their debt.

The salary rates for these top executives is surprisingly high:

While the average executive compensation at public research universities increased 14 percent from 2009 to 2012, to an average of $544,554, compensation for the presidents of the highest-paying universities increased by a third, to $974,006, during that period.

Public universities have to publicly disclose employee compensation. So if you or your child is currently looking for a university to attend, take a look at the compensation for top employees. It might give you a window into future tuition increases and whether or not your dream school is affordable.

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