Private Colleges' Perspective on College Board's 2003-04 Tuition Survey; Statement of David L. Warren, NAICU President 10/21/2003
From: Tony Pals of the National Association of Independent Colleges and Universities, 202-739-0474; 202-288-9333 (cell); e-mail: tony@naicu.edu WASHINGTON, Oct. 21 -- Following is a statement of David L. Warren, president, National Association of Independent Colleges and Universities, on the College Board's 2003 Tuition and Student Aid Trends reports: "Private college and university presidents understand the apprehension that annual increases in tuition sticker price create in students and families. Our colleges have responded by increasing institutionally provided aid by more than twice as much as tuition in the past year (15 percent vs. 6 percent)-as well as over the last decade (197 percent vs. 86 percent). New data from the Education Department show that net tuition (list price minus grant aid) at private institutions has actually declined by $100 over the past 10 years, when adjusted for inflation. "For most students at private colleges and universities, annual increases in their out-of-pocket costs trail tuition increases, because of faster growth in institutionally provided aid. Eighty-four percent of undergraduate students at private colleges pay less than the list price thanks to a partnership of federal, state, institutional, and corporate and foundation aid dollars. In 1999-2000, these students received an average of $13,700 in aid from all sources. "This year, private colleges kept the average increase for 2003-04 at 6 percent, despite several years of poor endowment and fund raising returns, sharp increases in family financial need, and costs for health care, library resources, and technology that have long increased faster than the Consumer Price Index. This year's increase is only half a point higher than the 5.5 percent average for the last 10 years, and significantly lower than the double-digit increases that were common during the last economic downturn. According the College Board's tuition survey, the average tuition list price at private colleges and universities for 2003-04, before student aid is considered, is $19,710. "The first priority of private colleges and universities is continuing to bolster oversight of costs and enhance operating efficiency, while maintaining educational quality and access for students from all backgrounds. The competitive higher education market, and the importance families place on the value of their college investment, ensure that college presidents will stay committed to a quality education that is accessible to students from all backgrounds, at the lowest possible net price. "Private colleges and universities are using innovative cost-cutting and affordability initiatives to keep the impact of tuition increases on student out-of-pocket costs as low as possible, without cutting into the academic quality that makes them the envy of the world. "There is no one-size-fits-all approach to affordability, because of differences in mission, student population, and fiscal resources, but that hasn't stopped private colleges and from taking creative steps. "They are entering into more consortial arrangements that leverage their purchasing power to obtain lower costs for energy, insurance, information technology, and other services. They are outsourcing campus services, such as grounds and facilities maintenance, residence hall management, and bookstores. "At the same time, private colleges are using creative ways to make their institutions more affordable. Some institutions have cut tuition, while others have locked in the tuition rate for a student's four-year enrollment. Others offer three-year bachelor's degree programs, and more than 200 private institutions expect to launch their own prepaid tuition plan (the Independent 529 Plan) this fall. "I encourage legislators, consumers, and reporters to explore the lists of cost-saving and affordability initiatives that the National Association of Independent Colleges and Universities maintains on its Web site at http://www.naicu.edu/news/campusinnovations.asp. "It isn't cheap to provide a world-class academic experience for students who will be America's future leaders and innovators in industry, business, science, and public service. Despite the cost, private institutions have made sure their students are learning in modern laboratories and using the latest in information technology. They provide access to specialized periodicals and other learning materials, and compensate their employees fairly. "A private college education can be a large investment for students and their families, but it is an investment with a big pay-off. Over the past 25 years, the value of a bachelor's degree has grown at an amazing rate. During a lifetime, the college graduate earned nearly a million dollars more than a high school graduate ($2.1 million versus $1.2 million). "Private colleges and universities work hard to give students a high-quality education, prepare them for the workforce, and make them much more likely (79 percent vs. 49 percent) to graduate in four years as their counterparts at public institutions. Generous student aid opportunities, small class sizes, personal attention from professors and staff, world-class academics that foster intellectual growth and train tomorrow's leaders, and campus environments that promote student engagement with one another and their surrounding community make private higher education the best investment a student can make." --- NAICU serves as the unified national voice of independent higher education. Since 1976, the association has represented private colleges and universities on policy issues with the federal government, such as those affecting student aid, taxation, and government regulation. With nearly 1,000 member institutions and associations, NAICU reflects the diversity of private, nonprofit higher education in the United States. NAICU members enroll 85 percent of all students attending private institutions. They include traditional liberal arts colleges, major research universities, comprehensive universities, church -related institutions, historically black colleges, Hispanic-serving institutions, single-sex colleges, and two-year colleges. | |