Douglas Olsen
Universities have long been accused of exploiting students for financial gain. This includes the use of students as cheap labour, with many universities employing their own students as teaching assistants, graduate students, or adjuncts, often paying them low wages with no benefits or guarantee of continued employment. Additionally, universities have been criticized for their role in the accumulation of student debt, with the rising cost of tuition and fees contributing to a multifaceted crisis in higher education. Furthermore, the pandemic revealed universities' widespread inability to respond to student and worker needs, leading to a wave of activism and strikes on university campuses. Beyond this, the private sector and universities themselves have been accused of exploiting students' spending power through targeted marketing and discounts, encouraging students to spend more while creating an illusion of saving. Finally, the rise of fake universities, particularly during the COVID-19 pandemic, has led to the exploitation of students seeking quick and affordable degrees, with these institutions providing degrees that have no accredited academic or professional value.
| Characteristics | Values |
|---|---|
| Cheap teaching labor | International students are hired as language assistants and paid $12/hour, while full-time lecturers make almost 10 times that amount. |
| Unpaid labor | PhD students often face late or non-existent payments, inadequate facilities, and a lack of formal training and support. |
| Insecure employment | More than half of teaching faculty are "adjuncts", who are paid per class with no benefits or guarantee of continued employment. |
| Predatory financial practices | Universities market their facilities and discounts to students, profiting from their expenses and tuition fees. |
| Union-busting | Universities leverage students' positive relationships with advisors and mentors to campaign against unions, making it harder for graduate students to organize. |
| Unaccredited degrees | Fake universities in the UK exploit individuals seeking quick and accredited degrees, providing degrees with no legal recognition or academic value. |
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What You'll Learn
Unpaid/underpaid labour of PhD students
PhD students are often employed as teaching assistants, graders, and researchers, performing various academic tasks that universities rely on. However, these students are often underpaid or not paid at all for their labour, receiving meagre stipends or “per-class" payments that amount to less than minimum wage when preparation time is considered.
A 2012 report by the National Union of Students revealed that almost one-third of postgraduate teachers earned below the minimum wage, with half deeming their pay unfair, especially given that many are required to teach to receive funding. The University and College Union's research further emphasized this reliance on cheap labour, showing that over a quarter of teaching staff in universities are on hourly-paid contracts, with at least half on insecure employment terms.
The issue is exacerbated by the lack of representation for PhD students within students' and staff unions, who may consider campaigning for these students as conflicting with their core objectives. This leaves PhD students with little power to negotiate better terms, and they often fall into a cycle of competitive short-term contracts, with only a small percentage obtaining permanent academic positions.
The pressure and insecurity take a toll on the mental health of PhD students, who report higher rates of problems. While some universities are recognizing the need for better support, skills development, and career advice, there is still a prevalent issue of universities exploiting PhD students for cheap labour, perpetuating an unsustainable academic careers pipeline.
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Predatory financial practices
Since the 1970s, universities have increasingly been criticized for their predatory financial practices. These practices include the exploitation of students and staff, the targeting of international students, and the promotion of a consumerist culture among students.
One of the most prominent ways in which universities engage in predatory financial practices is through the exploitation of their staff, particularly graduate students and adjunct professors. Graduate students are often required to take on teaching, demonstrating, marking, and other academic duties as a condition of their funding. However, they are often paid below the minimum wage, with some making as little as $12 per hour or $2,700 per course. This is despite the fact that their labor is a vital source of income for universities, with over a quarter of teaching staff in universities being hourly paid. The use of graduate students and adjunct professors allows universities to cut costs and exploit the academic aspirations of their staff.
International students are also vulnerable to exploitation by universities, particularly in language teaching programs. Universities often pay international language assistants very low wages or no wages at all, taking advantage of their visa status and presenting the opportunity to teach as a "great opportunity" rather than a job. This practice is prevalent at many highly ranked schools, including Grinnell College, Wesleyan University, and Pomona College.
Universities have also been criticized for promoting a consumerist culture among students. Student discount schemes and university marketing campaigns create the illusion of affordability and saving money, encouraging students to spend more and generate revenue for the university and the wider economy. This exploitation of students' expenses and tuition fees contributes to the perception of universities as predatory financial institutions.
The neoliberal university model, characterized by the channeling of public goods into private hands, has been identified as a key driver of these predatory financial practices. The focus on privatization and profit-driven motives has led to the exploitation of both students and staff, with universities prioritizing financial gain over the well-being and fair treatment of their community members.
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Unaccredited degrees
These degree mills often have no campus or faculty and are not recognised by the relevant accreditation bodies. They may be based in one country but target students in another, creating an unfair advantage in the job market for those who hold these fraudulent qualifications. For example, in the Middle East, some "universities" consist of little more than a website, offering tempting shortcuts to a degree certificate.
To appear legitimate, these fake universities may use similar names to accredited institutions, register as private educational companies, or exploit legal loopholes such as notarial confirmation. For example, in Norway, "Bay Ridge University" offered certificates with genuine stamps on the back, which merely confirmed the authenticity of the signature on the front, rather than the degree itself. In the UK, all university websites end in ".ac.uk", so a legitimate university is likely to have this URL ending.
The consequences of the degree mill industry are far-reaching, eroding the quality and reputation of education providers and diminishing the value of accredited degrees. This not only impacts students and graduates but also society as a whole, as unqualified individuals may put others in danger, particularly in fields such as healthcare. To combat this issue, students are advised to check the accreditation status of their chosen university with government and official bodies, such as the Quality Assurance Agency for Higher Education (QAA) or the Office for Students (OfS) in the UK.
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Student discounts
However, the concern is that these discounts encourage students to spend more than they otherwise would. A 10% discount on a £20 order only saves £2, a negligible amount. Yet, the perception of a good deal may influence students to make purchases they might not otherwise make. This dynamic benefits businesses and the economy, with students injecting significant revenue.
Universities themselves may also market their facilities and offerings in a similar way to student discounts, creating an appealing image that obscures the reality of high tuition fees and expenses. This commercialisation of higher education can lead to a cycle of exploitation, where students are encouraged to spend more, and universities profit from their expenses.
While student discounts can provide financial relief, it is essential to recognise their potential role in a broader system of commercial incentives targeting students.
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Poor working conditions for language assistants
Universities have been accused of exploiting students for cheap teaching labor, with some language assistants being paid as little as $12 per hour, which is not a living wage. These students are often international students who are constrained by their visa status and are therefore easier to exploit. The labor performed by language assistants is often framed as a "great opportunity" for young adults to make some money while enjoying the "main" experience of studying and socializing abroad. However, this does not change the fact that they are being taken advantage of, as full-time lecturers at the same universities can make up to ten times more per hour of teaching.
At Grinnell College, the student newspaper attempted to report on the underpayment of language assistants but was unable to do so as the language assistants they reached out to declined to comment, possibly out of fear of losing their jobs. This suggests that the university may have issued some form of gag order. Similar systems have been reported at Wesleyan University, Pomona College, Middlebury College, and Williams College, as well as many other schools that participate in the Fulbright Language Teaching Assistant Program.
The exploitation of language assistants is not limited to underpayment, as some universities do not pay their student workers at all. For speakers of less commonly taught languages, universities are not required to pay wages and are instead recommended to provide a monthly stipend of $500 to $600 or free room and board for up to 20 hours of work per week. This arrangement is extremely exploitative and takes advantage of the students' labor to generate surplus value for the university.
The issue of exploitation in higher education is not new, and it has been argued that universities have become predatory financial giants, with students graduating with mountains of debt. The academic job market is also in a state of crisis, with graduate students trained to be professors unable to find tenure-track positions and instead piecing together classes that pay a few thousand dollars each to survive.
In addition to poor working conditions for language assistants, universities have also been criticized for their role in encouraging students to spend more and profiting from student expenses and tuition fees. Student discounts and offers from companies are marketed as desirable deals, creating an illusion of saving money. However, the average university student still spends a significant amount each month, including on rent and utilities, contributing a large amount of revenue to the economy.
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Frequently asked questions
Universities exploit students financially by marketing their facilities as desirable and hiding the reality of profiting from student expenses and tuition fees. For example, student discounts create an illusion of saving money and encourage students to spend more.
Universities exploit student workers by paying them low wages and presenting the work as a "great opportunity" to make some money while enjoying the "main" experience of studying and socializing. Student workers are also constrained in their ability to find alternative employment, making them easier to exploit.
Universities exploit postgraduate students by relying on their unpaid labour. Postgraduate students are often forced to teach as a condition for receiving funding and are paid below the minimum wage. They also face issues such as late or non-existent payments, delays in getting proper contracts, inadequate office facilities, and a lack of formal training and support.
