Daniel Nelson writes for the Martin Center about the value of Christian colleges.
In his recent article, “Are Christian Colleges Worth the Debt Burden?” Douglas Oliver argues that Christian colleges have a responsibility to reduce the tuition they charge their students to avoid excessive borrowing. He invokes a version of the Bennett Hypothesis, stating that “the business model for most Christian colleges is based on high levels of student debt” and that “Christian colleges need to ‘walk the walk’ by discouraging their students from taking out large life-altering levels of debt.”
Oliver states that, as a group, Christian colleges have 1) lower-than-average default rates, 2) lower graduation rates, and 3) average long-term earnings for alumni.
While I share Oliver’s concern for students who drop out of college with onerous debt levels, that is not a phenomenon unique to Christian colleges.
I believe that students fare better at Christian colleges, both the well-prepared and those with lesser preparation or ability. I also believe that, rather than being motivated to raise tuition due to the availability of student loans, market forces push Christian colleges (and all private colleges) to control the net costs incurred by students and families. That effort has led to relatively flat loan levels over the past decade. …
… But why should grad rates be lower at smaller schools? That has to do with the mission of the schools and the diverse populations they serve. Fifty years ago, when I enrolled at Bethel University, a small Christian college, most families sent their children to the school for a grounding in their faith before transferring to a larger school to complete a specialized major not on offer. The six-year grad rate hovered around 40 percent. Since then, the school has grown, added majors, and maintains a grad rate approaching 75 percent.
Our smallest Christian colleges are much like the school I attended a half-century ago.
