Inflation-Adjusted Net Tuition at Private Colleges Drops 4.1 Percent in the Last Five Years

Average inflation-adjusted net tuition and fees (published tuition and fees minus grants from all sources and federal tax benefits) at private, nonprofit colleges and universities actually dropped 4.1 percent, from $13,520 in 2006-07 to $12,970 in 2011-12, according to the College Board. 

The College Board also reported five-year trends for net total cost of attendance. Total cost includes tuition and fees plus room and board charges. In the last five years, the inflation-adjusted net total cost of attendance at private, nonprofit colleges has remained fairly constant, increasing only 1.95 percent from $22,610 in 2006-07 to $23,060 in 2011-12.

Click on chart to enlarge. Note: Prices have been rounded to the nearest $10. Source: The College Board, Annual Survey of Colleges, Trends in Student Aid 2011; calculations by the authors.

The net tuition findings were reported in the College Board’s Trends in College Pricing 2011 report. A statement by NAICU President David L. Warren on the College Board’s findings is here.

Additional Data

Other pertinent data on tuition, student aid, and affordability trends from the College Board.

• In 2011-12, full-time students at private, nonprofit four-year institutions receive an estimated average of approximately $15,530 in grant aid from all sources and federal tax benefits. This reduces the average published tuition and fees of $28,500 to an average net tuition of $12,970.
  
  
• The College Board reports that private, nonprofit colleges increased published tuition and fees by an average of 4.5 percent in in 2011-12. According to NAICU’s own annual tuition survey, the percentage annual increases in the past three years are among the lowest since 1972. They were also outpaced by increases in institutionally provided student aid. In the 10 years preceding the economic downturn, annual tuition increases at private nonprofit colleges averaged 6 percent.

The Bottom Line

By holding tuition increases to some of the lowest levels seen in decades and boosting institutional student aid budgets, private nonprofit colleges and universities are working to keep students’ out-of-pocket costs as low as possible, while still providing a quality academic experience. Through these efforts, private, nonprofit colleges remain the best higher education value for millions of students.

NAICU President Submits Testimony on Nontraditional Students for Advisory Committee Hearing

NAICU President David L. Warren submitted the following statement on under-served students for the fall 2011 hearing of the Advisory Committee on Student Financial Aid Assistance. In it, Dr. Warren addresses the growth in the nontraditional student population and measures by private nonprofit institutions to improve retention and completion rates.

Hearing of the Advisory Committee on Student Financial Assistance

September 30, 2011

Written Testimony on Nontraditional Students

Submitted by David L. Warren, President

National Association of Independent Colleges and Universities

Washington, D.C.

Thank you for soliciting written testimony to supplement the hearing proceedings that are focused on strategies, policies and practices for improving college degree and certificate completion among nontraditional students. The National Association of Independent Colleges and Universities (NAICU) represents close to 1,000 of America’s private nonprofit postsecondary institutions, characterized by campuses both large and small, from the Ivy League, women’s colleges, historically black and Hispanic-serving institutions, as well as the broad spectrum of faith-based colleges, all of whom dedicate themselves to serving a student population as diverse as the nation itself.

Recent postsecondary education projections released by the U.S. Department of Education’s National Center for Education Statistics (NCES) reveal that postsecondary enrollments will continue to grow, reaching 23 million by 2020 (an increase of 13% from 2009) . According to the National Center for Higher Education Management Systems (NCHEMS), this will be insufficient to support the 4.5% annual degree attainment rate increase necessary to achieve President Obama’s ambitious, yet worthy, 2020 goal of making the U.S. first in the world in college completion. Unless we significantly increase the proportion of students that complete their degrees, the nation will not reach the 2020 goal. Nontraditional students – broadly defined as any postsecondary student who is not between the ages of 18 and 24 attending full-time – have quietly come to dominate the higher education college-going landscape. This fact makes them a key demographic in higher education, as well as critical to meeting the nation’s goals. NCES predicts that between 2009 and 2020, enrollment of nontraditional students aged 25 to 34 will increase by 21%, and enrollment of adults 35 and above will increase by 16%. Further, students attending part-time will increase by 16%, and first-time freshman by 11%.

Nontraditional students experience multiple barriers to successful and timely degree and credential completion, and most fail in their efforts to overcome them. Many of these students juggle several competing responsibilities, and their main identity is not tied to that of being a college student; it is an aspect of their lives that frequently takes a back seat to other more pressing responsibilities. Many are employed full-time, have dependents, attend part-time and must periodically “stop-out” of college. These factors present substantial roadblocks to completion, and present a challenge for institutions to find ways to help remove these obstacles. In short, serving nontraditional students requires flexibility, support and multiple pathways to help them achieve their education goals. Fortunately, some national longitudinal data exists (NPSAS, BPS, B&B) that identify and follow students with these risk factors, illuminating the issues they face. Private nonprofit colleges and universities across the nation have already utilized this baseline knowledge, together with on-campus data and experience, to craft programs that have proven to be successful in supporting and serving these students.

While enrolling a highly diversified student body, independent colleges and universities see 79% of their undergraduates earn their bachelor’s degree within six years . Further, among four-year postsecondary institutions, independent colleges and universities enroll 26% of all undergraduate students while conferring 31% of all bachelor’s degrees . This level of student success leads the postsecondary community. It has been achieved while educating a greater proportion of students considered most at-risk for non-completion than in the other four-year institution sector . More than one-fifth of students enrolled at an independent four-year institution have a family income below $25,000 a year, and over one-third are financially independent; approximately one-quarter are employed full-time and almost one-fifth delayed their postsecondary enrollment after high school. Further, more than one-quarter are older than twenty-five, and about one-quarter attend part-time. Finally, almost one-fifth of these students have dependents, many juggling the responsibility of being a single parent as well.

These factors long ago necessitated finding innovative ways to reach out and support the needs of the nontraditional student. The success of this history of sustained effort, emphasis and commitment to the success of all students is well documented. Data show that 68% of first-generation students who attend four-year private nonprofit institutions succeed in earning a bachelor’s degree within six years, compared with only 33% at colleges and universities nationwide . For students enrolling with up to three risk characteristics, the six-year bachelor degree completion rate at nonprofit institutions is just under 50%, exceeding the success rates of peer institutions by almost five percentage points . Further, 61% of students with family incomes below $25,000 attain a bachelor’s degree within six years at a four-year independent college versus 49% at a public four-year; and almost 60% from the lowest quartile of SAT or ACT test scores earn a bachelor’s degree within six years compared to 47% attending a public institution. Despite these successes, we recognize that we can – and must – strive to do even more.

In an effort to identify and highlight the programs driving our sector’s level of student success and achievement, NAICU, in partnership with the Council of Independent Colleges (CIC), launched an initiative entitled Building Blocks to 2020. Our goal is to identify, collect, and publicize proven programs, making them more visible on a national scale. NAICU does so that others can learn from and/or replicate them, leading to higher levels of student success across the spectrum of higher education institutional types and levels. To date, NAICU has gathered information on hundreds of diverse and successful programs, and has made them publicly available on its website in an effort to inform and encourage the postsecondary community in its entirety. The programs themselves demonstrate the many and varied pathways students require, if they are to navigate the complexities in their life circumstances. Further, the personal stories of hard work and achievement that underlie these programs build on the American spirit, and appeal to citizens across political ideologies. We believe that these programs can serve to inform policy makers and other key stakeholders about meaningful, proven programs that are currently underway. They are demonstrating positive gains in advancing both students and the nation toward their respective completion goals.

Following are just a few examples of the progressive and varied programs that have been quietly transforming the lives of nontraditional students, and are among the hundreds that are publicly available on NAICU’s Building Blocks to 2020 website.

1. The Degree Start and Degree Completion programs at Albright College (PA) are accelerated degree programs for working adults and provide a convenient route to earning or completing a degree. Degree Start allows students to earn the general studies portion of their bachelor’s degree in as little as two years, while working full time. After two years, students can transfer to Albright’s Accelerated Degree Completion Program (DCP) or a traditional Albright daytime degree program.
   
2. Mary Baldwin College's (VA) Adult Degree Program serves adult students returning to college. The program provides individualized academic counseling, and flexible course options that facilitate access and completion. Students may attend courses online, in the classroom, in hybrid formats, or in tutorials. Faculty and advisers serve students out of nine regional centers throughout Virginia.
   
3. The Return to Learn program at Rider University (NJ) provides assistance to adult learners who have completed more than 60 credits but have not earned a degree. Funded by a grant from the New Jersey Commission on Higher Education, the program provides prior fee forgiveness, individualized counseling, and online course and degree options to qualified adult learners.
   
4. The Resumed Undergraduate Education (RUE) program at Brown University (RI) targets students that are over the age of 25 and have begun college elsewhere, left before earning a degree, and are now returning after more than a five-year absence in academic study. This program offers the option to study part-time, and also offers social events throughout the year. Each RUE student is assigned an academic advisor who assists in planning a course of study that will lead to degree completion.
   
5. The Women with Children Program at Wilson College (PA) is a residential program offered for single women with children that are 20 months and older. Prospective students and their families undergo a separate interview process to make sure that the family is ready for residential life. Students are able to benefit from all of the programs offered on campus and to participate in co-curricular activities. Child care for children of the appropriate ages is provided without charge to the student.

NAICU and private nonprofit institutions nationwide have been, are, and will remain committed to the success of all students, and will continue to strive for higher rates of meaningful degree and credential completion. NAICU is likewise committed to identifying and disseminating information on the innovative and successful programs of its institutions, and advocating for their expansion and duplication across the higher education community. We support and remain highly engaged in this important national effort, embracing our responsibilities to our students, the postsecondary community, and the nation.


Click here to view the full PDF version of the testimony submitted to the advisory committee including end notes.

NAICU Members in the News

Here is a look into recent happenings that have taken place at our member institutions.

• Carnegie Mellon University will open a branch in Rwanda next year, making it the first American university to operate a full-fledged campus in Africa. The institution will offer master’s degrees in information technology and in electrical and computer engineering, and is hoping to attract about 150 students by 2017. (Chronicle of Higher Education)
  
• Despite the effect of the uninspiring economy on Rochester-area colleges, higher education continues to remain an important part in the local economy. Many of the schools in the Rochester area continue to allot money toward campus improvement including $900 million toward construction and renovation of new facilities. Preliminary estimates by these colleges – among them, the University of Rochester, Rochester Institute of Technology, Nazareth College, St. John Fisher College, and Roberts Wesleyan College – show a fall enrollment total of about 85,500 — about the same as a year ago. (Democrat and Chronicle)
  
• Columbia College President Gerald Brouder has announced a new tuition plan, titled Smart Step, and a new school brand. The plan will hold a student’s tuition constant for up to five years, allowing students and families to plan for future college expenses. The brand change includes a new logo, school flag, and additional school colors. (Columbia Missourian)
  
• After reaching a low point in its financial history, Goddard College shut down the residential program and adopted its low-residency adult program as the sole campus offering. Since then, the school has re-flourished and re-emerged with a record high of students, money to spend, and a plan to expand its program across the country. (Chronicle of Higher Education)
  
• Since hiring new athletic director Diana Cutaia, Wheelock College’s athletic department has drastically improved thanks to a single change in their philosophy: winning doesn’t matter. The more important aspects to the athletic program – such as improvement, enjoyment, character and team building – have brought the department’s collective record from 45 athletes with three wins the prior season, to 122 athletes and 40 wins last year. (Boston Globe)
  
• Converse College President Betsy Fleming was in New York City during the 9/11 terrorist attacks. She was inspired by the events she witnessed during the aftermath, the kindness and compassion of the human spirit, and reminds herself and her students to “live [life] to the fullest.” (Spartanburg, S.C., Herald-Journal)
  
• Ruth J. Simmons will step down as president of Brown University at the end of the 2011-2012 academic year. She became Brown’s 18th president in 2001, and has since dramatically enriched the university and led it through difficult economic times. After her retirement as president, she will continue as a professor of comparative literature and Africana studies. (Brown University)

Legislative Update: What the Debt Deal Means for Student Aid

Last night, President Obama and congressional leaders reached an agreement on a debt ceiling/deficit reduction plan. If approved by the full House of Representatives and Senate, the deal would provide a short-term reprieve to Pell Grants. A key piece of the deal is $17 billion toward the funding of the Pell Grant program in FY 2012 and FY 2013.

From the beginning of negotiations, Pell funding was included in bills offered by both House Speaker John Boehner (R-Ohio) and Senate Majority Leader Harry Reid (D-Nev.). While this infusion of funds sidesteps a massive cut to the Pell Grant maximum for the 2012-13 award year, it is unfortunately paid for through the elimination of the in-school interest subsidy for graduate student loans.

The deal trumps House Budget Committee recommendations to prohibit using mandatory savings from student loan provisions to pay for Pell Grant increases. It also lists Pell Grants as an essential program for low-income individuals that would be protected in the event of an automatic across-the-board cut to meet deficit reduction targets.

However, we still have lots of work to do this year. Even with the additional funding, Pell Grants will need an additional $1.3 billion in this fall’s appropriations process to maintain the $5,550 maximum grant. Funding for the other student aid programs – SEOG, Federal Work-Study, Perkins, TRIO, GEAR UP, graduate programs -- and for university research and the National Institutes of Health also needs to be approved this fall. These decisions will be made under the new spending cap set in the debt bill. The cap is $24 billion more than the House-passed budget, but $7 billion below last year’s total spending level.

The other part of the deal we will need to watch is the Special Joint Committee, which is charged with protecting another $1.5 trillion in cuts. The outcome is likely to be a big budget reconciliation bill, which is likely to target the undergraduate in-school interest subsidy for elimination.

We appreciate all that NAICU members, students, and other student aid advocates have done over the last six months to let Congress know the importance of federal student aid for low-income students and the nation. We look forward to more action in the fall.

--> What the Deal Means for Student Aid 

• Provides $17 billion for the Pell Grant program in FY 2012 and FY 2013
• Eliminates the in-school interest subsidy for graduate and professional student loans to pay for Pell and provide some deficit reduction
• Leaves a $1.3 billion gap in Pell Grant funding for FY 2012
• Protects Pell Grants in the event of automatic cuts.

--> We Still Have Our Work Cut Out for Us

• Pell Grants need an additional $1.3 billion in this fall’s appropriations process
• SEOG, Perkins, FWS, TRIO, GEAR UP, graduate programs and research/NIH need to be funded in this fall’s appropriations process
• Undergraduate in-school interest subsidy will be a target for elimination in the Joint Congressional Committee deliberations this fall

--> Basics of the Debt Ceiling and Deficit Reduction Deal

• Increases debt ceiling by $900 billion immediately, to avoid default.
• Cuts spending now by $1 trillion.
• President can request an additional $1.2 - $1.5 trillion increase in early 2012.
• Sets discretionary spending caps at $1.043 trillion for FY 2012. (That is $24 billion more than the House Budget Resolution, $7 billion less than last year.)
• Sets discretionary spending caps at $1.047 trillion for FY 2013.
• Creates a firewall between defense and non-defense spending.
• Creates a Joint Congressional Special Committee to consider $1.5 trillion in additional cuts to be presented by Thanksgiving, and voted up or down before Christmas this year. (An additional $300 billion in savings will be realized through lower interest payments.)
• If deficit reduction is less than $1.2 trillion, an automatic across-the-board cut will be applied equally to defense and non-defense spending, to make up the difference.
• Requires House and Senate to vote on the Constitutional Balanced Budget Amendment between October 1 and December 31, 2011.
• Amends Congressional Budget Act of 1974 for budget enforcement procedures.

NAICU Members in the News

Here is a look into recent happenings that have taken place at our member institutions. To submit your campus news, email joyce@naicu.edu.

• Amherst College will appoint Carolyn A. Martin, chancellor at the University of Wisconsin-Madison, to become its next president. (New York Times)

• Aquinas College has chosen Sister Mary Sarah, O.P. as its new president as it marks its 50th year anniversary. (Business Wire)

• Starting this fall, Benedictine University’s new program, “Illinois Back to Work” will provide financial assistance to workers who have been unemployed for at least 18 months. (State Journal-Register)

• Carthage College’s president, Gregory Campbell, announced he will retire in August 2012. (Journal Times)

• Duke and Stanford Universities each announced a foundation-supported effort to further the study of humanities. (Inside Higher Ed)

• Franklin & Marshall’s new president, Dan Porterfield plans a new era for the college. (Lancaster Sunday News)

• Hampshire College has chosen Jonathan Lash, president of World Resources Institute, as its next president. (Hampshire College)

• Kettering University’s president, Stanley R. Liberty will end his tenure this summer. (Flint Journal)

• Landmark College has named Peter Eden, Dean of Arts and Sciences and Professor of Biotechnology at Endicott College, as the school’s fourth president. (WCAX-TV)

• McPherson College’s president, Michael Schneider shares efforts to foster entrepreneurship at the school. (Inside Higher Ed)

• New York University will partner with the University of the People, an online school, to further its higher education initiatives. (New York Times)

• Northland College has reduced their debt by more than half. (Ashland Current)

• Pine Manor College’s new president is Alane Karen Shanks who was previously vice president of administration and finance at Roxbury Community College. (Boston Globe)

• Private colleges in Ohio, including Baldwin-Wallace College, Hiram College, John Carroll University, Kenyon College, and Oberlin College, offer programs to help students graduate in four years. (Cleveland Plain Dealer)

• Rev. John Schlegel, recently retired president of Creighton University, discussed his future plans. (Omaha World-Herald)

• Saint Joseph’s College of Maine has entered into a new student transfer agreement with Northern Essex Community College. (Boston Globe)

• Stevenson University will start up a new football program this fall. (Owings Mill Patch)

• The University of Hartford will collaborate with Hartford’s public schools on new measures in education and research. (Boston Globe)

• Union College asks John Wagner to be its interim president for the third time. (Press Release)

NAICU Submits Statement for Upcoming Senate DREAM Act Hearing

NAICU has submitted the following statement for the upcoming Senate hearing concerning the DREAM Act. In it, NAICU expresses its support of the bill and of DREAM Act students in their pursuit of higher education.

STATEMENT FOR THE RECORD OF
The National Association of Independent Colleges and Universities (NAICU)

BEFORE THE

SUBCOMMITTEE ON IMMIGRATION, REFUGEES AND BORDER SECURITY
COMMITTEE ON THE JUDICIARY
UNITED STATES SENATE

AT A HEARING ENTITLED
“S. 952, DEVELOPMENT, RELIEF, AND EDUCATION FOR ALIEN MINORS (DREAM) ACT OF 2011”

PRESENTED
JUNE 28, 2011

Chairman Durbin, Ranking Member Cornyn, and members of the Subcommittee; thank you for the opportunity to submit this statement of support for the DREAM Act of 2011, and for Chairman Durbin and the committee’s efforts to enact this important bill.

The National Association of Independent Colleges and Universities (NAICU) serves as the unified national voice of independent higher education. Since 1976, NAICU has represented private colleges and universities on policy issues with the federal government. With more than 1,000 members nationwide, NAICU reflects the diversity of private, nonprofit higher education in the U.S. Members include traditional liberal arts colleges, major research universities, church- and faith-related institutions, historically black colleges and universities, women’s colleges, performing and visual arts institutions, two-year colleges, and schools of law, medicine, engineering, business and other professions.

NAICU has long-supported the DREAM Act. The DREAM Act is also widely supported throughout the higher education community. It would affect students who came to the United States as illegal immigrants before they were 16 and who have been in the country for at least five years. The bill would grant temporary residency, during which time, these individuals would have the chance to earn permanent residency if they complete at least two years of college or serve at least two years in the armed forces with an honorable discharge.

Many of our member colleges and universities enroll DREAM Act-eligible students. These students deserve a chance to become successful U.S. citizens. They have worked hard pursuing their education. Our country has invested in them throughout their early education and in spite of formidable challenges, many are pursuing a college education. Our nation would benefit by allowing these young adults to become tax-paying contributors to the U.S. economy.

The continuing detainment and deportation of DREAM Act students is not only a waste of scarce federal resources, it is morally indefensible for us to punish these young people who were brought to the United States as infants or young children by their undocumented parents. Until the DREAM Act is able to be considered by Congress, these individuals should be able to continue to pursue their education or military service without the risk of being sent back to a country most of them have no familiarity with. Many of our member institutions with DREAM-eligible students are writing to President Obama requesting that he issue an Executive Order that would defer the deportation of these students until the DREAM Act is enacted.

The DREAM Act of 2011 includes important abuse-prevention measures. Participants would not be eligible for federal grant aid, including Pell grants, so enacting this bill would not add costs to the Pell program. Violation of this would result in tough criminal penalties for fraud. In addition, eligible students must submit to rigorous testing, background checks and medical exams.

In conclusion, failure to enact the DREAM Act will result in the deportation of students who have little or no connection with the country they were born in, and want to be contributing members of the U.S. economy. Our country is at a massive economic loss when we prevent these college educated young adults from legally entering the U.S. workforce. On behalf of the NAICU member colleges and universities, we thank you for your dedication to the DREAM Act and urge its prompt consideration.