In February, we held a discussion focused on financial challenges in academia, specifically how they affect students and faculty and how the situation could be improved in STEM research. Students and faculty from Penn State shared insights on research costs, graduate student stipends, and faculty salaries, and graduate student unions. This discussion highlighted the need for greater transparency, equity, and support in compensation practices, as well as the importance of financial stability in fostering a more diverse and inclusive academic environment.

Key Discussion Points:

1. Compensation for students and faculty can vary widely.
   Compensation varies across universities, and even within Penn State, differences exist between departments and programs. Graduate students do have a minimum stipend guaranteed by the university (Grade 12 half-time), but departments have flexibility to offer more, which can lead to significant disparities across the university. Faculty salaries vary based on market demand and funding sources. For instance, engineering faculty often earn more than those in social sciences, and newer faculty may be hired at higher rates than previous hires.
2. Standardization of compensation and financial protocols
   The idea of standardizing compensation across departments or the university was raised. While it could offer more equity, it may not be feasible or desirable across different fields where market rates differ significantly. Beyond monetary compensation, participants discussed standardization of other financial protocols. Reimbursement processes for research-associated costs (such as travel for conferences or research) are inconsistent across labs: some students and researchers lack access to purchasing cards (P-cards) for research expenses, forcing them to cover costs out of pocket. Reimbursement processes can be slow, which disproportionately affects those already in tight financial situations. Standardization of these processes could help minimize those effects.
3. Is the current compensation enough?
   Many stipends are below the living wage. For example, the MIT Living Wage for Centre County, PA is $37,951, but the minimum Penn State stipend is $29,340, leaving a significant gap. Beyond wages, health insurance is part of compensation, but is often inadequate, particularly for those with chronic health conditions. Retirement benefits and childcare support are not included in compensation for students and often not for faculty or staff, adding to financial strain. A study of biology PhD stipends across 161 U.S. universities shows that many stipends fall below the MIT living wage for a single adult, making it difficult for students to cover basic living expenses without external support.
4. Impact on Diversity, Equity, and Inclusion (DEI)
   Financial instability can prevent students from underrepresented backgrounds from even entering graduate school and provide barriers to retention once in graduate school. This “selects” for those who can afford the high costs, limiting diversity in the field.

Actionable Items:

Increasing awareness about available financial resources such as food pantries, travel awards, and student care and advocacy funding can help alleviate some of the financial pressures faced by students and researchers.