The $150 million question—what does federal regulation really cost colleges?

Jon Marcus:

In the intensifying debate over whether to reduce federal government regulations on universities and colleges, one number has been at the forefront: $150 million.

That’s what Vanderbilt University says a study found it spends each year complying with government red tape: 11 percent of the university’s entire budget.

The figure was in a report drafted by the principal higher education lobbying organization, the American Council on Education, or ACE, at the request of the U.S. Senate Committee on Health, Education, Labor, and Pensions. It was the headline of a news release from the committee’s chairman, Republican Lamar Alexander of Tennessee. Alexander cited it again in an op-ed in the Wall Street Journal. And other advocates for easing rules on colleges and universities have repeated it, adding that it averages out to $11,000 per year in additional tuition for each of Vanderbilt’s 12,757 students.