The Motive for Indirect Cost Control in Higher Education

Abstract

Colleges and universities throughout the world rely on different funding models to cover costs. Regardless of the model used, these institutions are experiencing intense pressure to control costs. However, controlling indirect costs in traditional not-for-profit institutions of higher learning is in direct conflict with a more powerful survival motive. We propose that actions required to attract and retain students lead to product proliferation in the form of increased programmatic offerings and to other forms of student support, which leads to higher costs. Cost containment is not a realistic priority given the prevailing institutional structures.