NAICU Extra Credit

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

2011-11-07T14:04:00.055-05:00

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

2011-10-13T10:28:00.008-04:00

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.

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.
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.
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.
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.
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

2011-09-21T13:48:00.006-04:00

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

2011-08-01T16:48:00.000-04:00

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

2011-07-12T15:53:00.009-04:00

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

2011-06-23T13:52:00.010-04:00

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.

University Endowments Continue to Dig Out

2011-06-10T15:02:00.005-04:00

In a time of continuing financial uncertainty, a new survey by the Chronicle of Philanthropy brings some measure of reassurance as early reports of fiscal year 2011 endowment performances point to a second straight year of growth. Although college and university endowments have not fully recovered from the historic losses of the Great Recession, the16 institutions that responded to the Chronicle’s survey had earned a median 15-percent investment gain so far in FY 2011. Among the institutions surveyed, the University of Texas made the highest year-to-date investment return, with 18.5 percent on its $16.4 billion endowment.

Despite these steady gains, many endowment managers are taking protective measures against inflation and another economic downturn. The survey found that endowment-management companies have cut their assets in stock to 43 percent in 2010, as compared to 55 percent in 2006. Universities have also followed the trend by allocating only 31 percent of their funds to stocks.

It is important to note that most private colleges have modest endowments. Only 41 private universities have endowments worth at least $1 billion. Among the remaining 1,559 private colleges, the median endowment is just $18 million.

Media coverage: Chronicle of Higher Education

By Joyce Kim

NAICU Members in the News

2011-06-10T14:55:00.011-04:00

Within the past couple of weeks, many newsworthy changes have occurred at our member institutions. To submit your campus news, email joyce@naicu.edu.

Amherst College president Anthony W. Marx will resign on June 30, 2011 to become president of the New York Public Library. (Chronicle of Higher Education)
College of Wooster president Grant Cornwell’s new vision for the college hopes to add a more global approach to the traditional liberal learning. (Smart Business)
The Consortium of Universities of the Washington Metropolitan Area recently reported that its 14 member schools, which include American University, Gallaudet University, George Washington University, Georgetown University, Marymount University, and Trinity Washington University, fuel economic growth in D.C. by spending $1.8 billion annually in the district. (Washington Post)
Fresno Pacific University president D. Merrill Ewert will retire at the end of the 2011-2012 school year. (Fresno Bee)
Grace College will offer a two-year associate of arts degree beginning in August on their Fort Wayne and Indianapolis campuses. (Journal Gazette)
Actors Allison Janney and Josh Radnor are coming back to their alma mater for Radnor’s new film, Liberal Arts, as campus scenes will be shot at Kenyon College. (Hollywood Reporter)
Pacific Lutheran University president Loren Anderson will retire in spring 2012 after serving for 20 years. (News Tribune)
Reed College president Colin Diver will retire at the end of the 2011-2012 school year. (Portland Business Journal)
Shaw University reopened for its summer session on May 23 after a tornado closed the school two weeks early for the spring semester. (News & Observer)
Swarthmore College offered a live translation in Spanish of its commencement ceremony using wireless headsets. Next year, the college hopes to add Korean and Chinese translation channels. (Boston Globe)
The Tennessee Independent Colleges and Universities Association’s new study showed that the state’s private, nonprofit colleges and universities provide more than $8.1 billion to the state’s economy. (TICUA)
The Tennessee Independent Colleges and Universities Association announced that tuition for private colleges and universities in Tennessee will increase an average of 3.8 percent next year, the smallest increase in 10 years. (Nashville Public Radio)
Wittenberg University president Dr. Mark Erickson will step down after the 2011-2012 school year after serving since 2005. (Dayton Business Journal)
Yale University will re-establish the United States Navy’s R.O.T.C. program in fall 2012 where students will receive both military instruction and training on campus. (New York Times)

By Joyce Kim

Private College Presidents Are Focused on Challenges Ahead

2011-06-10T14:41:00.003-04:00

The following letter to the editor from NAICU President David Warren was published in the Chronicle of Higher Education on May 29, 2011. In it, Warren makes the case that leaders of private nonprofit colleges are committed to tackling the many challenges facing American higher education.

To the Editor:

On issues ranging from affordability to global competitiveness to completion, the Chronicle/Pew survey makes clear that college presidents are focused on the very real challenges increasingly facing higher education ("College Presidents Are Too Complacent," The Chronicle, May 15). The message that is communicated loud and clear at every conference of college presidents and in every campus trustee meeting is that no college can afford to be complacent, in the face of an unprecedented confluence of financial, demographic, and global challenges. No one argues that the immediate future will not hold great risk for institutions of higher education if the status quo is blindly maintained.

Private nonprofit colleges are redoubling efforts to keep students' out-of-pocket costs as low as possible, while maintaining academic quality, by keeping annual tuition increases in recent years to the smallest levels in nearly 40 years and by plowing savings from administrative cost-cutting into boosting institutional student aid. An unprecedented number of private colleges are launching three-year-degree programs, creating academic partnerships with community colleges, and expanding regional and statewide consortial arrangements with other institutions. Independent colleges are doing so to reduce academic redundancies, boost purchasing power for goods and services, and enhance operating efficiency. These institutions are addressing the needs of nontraditional students through flexible learning options and by connecting a foundation in the liberal arts with preparation for the workplace and emerging world economy.

Saving and strengthening the nation's social contract requires higher education to innovate and lead, but this cannot be accomplished without a deep commitment across all of American society. We must restore the partnership between colleges and universities, students and families, state and federal governments, and the private sector that made quality higher education available to students from all backgrounds. This partnership underpinned America's economic, scientific, and technological leadership in the last half of the 20th century, and we must rebuild it. Every college president I know stands ready to accept this challenge.

David L. Warren
President
National Association of Independent Colleges and Universities
Washington

Budget Deal Spares Pell Grant Maximum; Cuts Year-Round Pell and Other Student Aid Programs

2011-04-12T17:16:00.000-04:00

Details of how student aid funding fared in the Fiscal Year 2011 budget deal between the House of Representatives, Senate, and White House just became available last night. This agreement will affect funding for the 2011-12 academic year.

Student Aid for the Academic Year Beginning July 1, 2011

Pell Grant maximum remains at $5,550.

Year-Round Pell is eliminated immediately.

SEOG is maintained, but with a cut of $20 million (from $757 million), in addition to the across-the-board cut of 0.2 percent.

Federal Work Study, and most other non-defense, domestic programs, have a 0.2 percent across-the-board cut.

The previous decision to eliminate LEAP state grants was sustained.

It is clear that students' and colleges' advocacy efforts have been a major factor in students not being faced with more dire cuts this year. Congress was particularly persuaded by the fact that student aid letters had already gone out. Many education programs had a worse fate, and the GEAR UP and TRIO programs were also trimmed.

Student Aid for the Academic Year Beginning July 1, 2012

We will have our advocacy work cut out for us as we move to next year’s spending proposal, particularly on SEOG and the in-school interest subsidy on student loans.

The House Budget Committee started the process last week, and we now have details on the committee's proposal for student aid funding effective July 1, 2012. This marks just the beginning of the funding deliberations, but Congress wants to move quickly.

The House budget proposal for 2012 would:

Continue to trim Pell Grants, including an undecided cut to the maximum of at least $550.

Eliminate the in-school interest subsidy for both graduate and undergraduate student loans.

Repeal the 2007 expansion of Income-Based Repayment for student loans.

Make major cuts to the overall pool of money available for Education, Labor and Health and Human Services (no list of specific programs is yet available).

As FY 2012 budget deliberations move forward, it will be critical for students and higher education leaders to keep telling elected officials that student aid matters.

Growing Three-Year Degree Trend Expands to St. John's University

2011-03-16T14:43:00.000-04:00

St. John’s University is the latest nonprofit private college to announce a new three-year undergraduate degree program for 2011-12. A recent editorial in the Staten Island Advance praises the initiative, saying that the university "deserves major credit for proposing a bold new plan calculated to save students and their families a whopping $29,000."

The recent economic downturn and growing consumer concerns about the cost of higher education have prompted new efforts by nonprofit private colleges to enhance their affordability.

Since 2009-10, the number of institutions offering three-year options has increased significantly. Other independent institutions introducing three-year degrees in 2010 include Baldwin-Wallace College (OH), Lesley University (MA) and Grace College (IN).

The idea of three-year degree programs is popular among policymakers, who like the cost-savings they associate with them. It's a common model in Europe. Last year, Rhode Island mandated that Rhode Island College and the University of Rhode Island develop three-year degree programs. Pennsylvania lawmakers are also considering the idea. At the 2009 annual meeting of the American Council on Education, U.S. Senator Lamar Alexander (R-TN) encouraged institutions of higher education to commit to the concept.

Historically, educators and students in the U.S. have been less enamored of three-year degree programs. According to the most recent data from the U.S. Department of Education, only 4.2 percent of U.S. BA/BS graduates earned their degree within three years, 57.3 graduated within four years, and 38.5 percent took more than four years to graduate. (Source: U.S. Department of Education, National Center for Education Statistics, 1996/01 Beginning Postsecondary Students Longitudinal Study (BPS:96/01))

However, the economic downturn could very well encourage more students, and their parents, to look twice at the three-year option. For academically well-prepared and highly focused, motivated students, three-year programs could be very appealing.

Colleges that are adding and promoting new accelerated degrees will be watched closely by other institutions as well as policymakers. Several other colleges are currently studying the feasibility of offering three-year degrees. The number of institutions offering the three-year option will continue to grow.

Below is a list of nonprofit private colleges which plan to introduce three-year degrees, or already have them in place. These are the ones NAICU is aware of. There are likely to be others in existence.

Being introduced in 2011-12

- St. Johns (NY)

- Baldwin-Wallace College (OH)

- Grace College (IN) (Note: three -year degrees will be available in "50-plus major areas of study”)

- Lesley University (MA)

Introduced in 2010-11

- Nichols College (MA)

- Sterling College (VT) (Caveat: Sterling launched a year-round enrollment option in 2010-11 that allows undergraduates to graduate in less than four years. However, despite the quicker route to graduation, the college is not calling it a three-year program. Sterling also will freeze tuition for students who choose this option, as long as they remain continuously enrolled throughout the year.)

- Ursuline College (OH)

- University of Akron (OH)

Introduced in 2009-10

- Chatham University (PA)

- Hartwick College (NY)

- Lake Forest College (IL)

- Lipscomb University (TN)

Introduced prior to 2009-10

- Bates College (ME)

- Hiram College (MD)

- Judson College (AL)

- Manchester College (IN)

- Mt. Saint Mary's College (NY)

- Seattle University (WA)

- Southern New Hampshire University (NH)

- Upper Iowa University (IA)

Two-Week Budget Deal Kills LEAP Funding

2011-03-02T13:28:00.000-05:00

Today Congress sends President Obama a two-week continuing resolution (CR), keeping the federal government running until March 18, but killing funding for the Leveraging Educational Assistance Partnership (LEAP) grant program for FY 2011. LEAP makes incentive grants to states to encourage retaining and expanding state scholarships for needy undergraduate and graduate students.

The House passed the CR on March 1, by a vote of 335 to 91; the Senate passed the bill this morning, by a vote of 91 to 9.

Elimination of the $64 million for LEAP state grant funding could be felt by students soon, once we see if cash-strapped states will continue to keep up their student grant funding, even without the federal requirements.

LEAP funds would have gone to states on July 1, for states to match and make available to students at public and private colleges for the 2011-12 academic year.

Colleges will need to check with their respective state student aid agencies to see what it will mean for students. With state budgets tight as well, low-income students could be short the grant aid they need to continue their studies in the fall.

LEAP annually generates approximately $1.3 billion in aid for nearly 1 million students. More than 50 percent of these students come from families with annual incomes below $20,000.

With Death of Omnibus Bill, Student Aid in Jeopardy

2010-12-17T15:22:00.000-05:00

Last night, the Senate omnibus bill died because of Tea Party outrage over spending, and Republican pressure to kill all earmarks -- even their own.

The plan now is for the House to vote today on a short-term continuing resolution, keeping the government open until early February; and for the Senate to vote on it tomorrow. As of now, there is no additional spending added to the CR. This means there is no additional funding for the Pell Grant shortfall. The good news is that the LEAP program lives another day.

When the 112th Congress convenes, the top priority for budgeting will be to bring spending down to FY 2008 levels -- a $100 billion cut from where total spending is now. This puts LEAP and the campus-based aid programs at the top of the chopping list. We will need to work harder than ever to make the case to Congress that despite Pell being a costly program, the other student aid programs are also extremely important, serve specific purposes, and make thousands of dollars of difference to individual students.

Related coverage:

Dems Blink, and Likely Avert a Shutdown, National Journal, Dec. 17

$1.1 trillion spending bill collapses as GOP senators yank support, The Hill, Jan. 16

Democrats Concede Budget Fight to Republicans, Politico, Dec. 16

Previous NAICU update:

Senate Omnibus Includes Pell Money, Cuts LEAP, Dec. 14

A College Degree Is a Great Investment

2010-12-16T13:14:00.000-05:00

By Tom Horgan, president and CEO of the New Hampshire College and University Council

Since the economic downturn, a growing number of columns and op-eds have questioned the value of a college education. While most are not as vitriolic as the one published in my hometown newspaper last month, they make arguments that are not only inaccurate, but mislead consumers and unfairly represent the hard work going on at public and private not-for-profit colleges and universities.

While no one suggests that college is for everyone, the truth is that for those who take their education seriously, going to college offers a truly life-changing and enriching experience.

Unquestionably, college today is a major investment, and tuition rates are a real concern for students, families and higher education leaders. Finding ways to reduce costs, improve educational quality and increase access needs to be addressed with thoughtful solutions, not outrageous and unsubstantiated claims.

Despite the statements of critics, there is no denying that a college degree remains one of the best investments you can make. College graduates on average earn more, advance in their careers more quickly and hold better jobs. They also are more engaged in their communities, are more likely to vote in elections and typically utilize far fewer and costly social services.

Recently, the College Board released Education Pays, a report full of interesting data about the value of a college education. Here are a few compelling findings:

The median earnings for women between the ages of 25 to 34 who hold a bachelor's degree were 79 percent higher than for female high school graduates, up from 60 percent a decade ago.

For those with some college, but no degree, they still earned 17 percent more than high school graduates.

Lifetime earnings, over a 40-year work life, are 66 percent higher for a college degree holder than for a high school graduate.

As for educational debt, the report states that "the typical four-year college graduate who enrolled at age 18 has earned enough by age 33 to compensate for being out of the labor force for four years and for borrowing the full amount required to pay tuition and fees without any grant assistance."

Regarding community involvement, in 2009, 43 percent of bachelor's degree recipients participated in community service activities, compared to only 19 percent of high school graduates.

And there was a gap of 30 or more percentage points between the voting rates of four-year college graduates and high school graduates in 2008.

In July, the Bureau of Labor Statistics released unemployment rates by educational attainment. The report found unemployment for high school graduates was more than 10 percent. For those holding a college degree, it was only 4.5 percent.

Perhaps the reason my home state of New Hampshire is experiencing relatively low unemployment, and our citizens are so engaged in their communities, has something to do with the fact we are the seventh most highly educated state in the nation.

For those interested in fully participating in the best of the 21st century, a college degree is increasingly important. But we should never forget that getting a good job isn't the only reason for going to college. Learning to appreciate the arts, the importance of democratic principles and the diversity of the world's cultures are arguably even more important than training for a specific job.

Indeed, the very health of our American democracy depends on a well-educated citizenry, men and women with the skill to discern the difference between an argument founded on truth and one founded on ignorance or prejudice, or a desire to mislead. We should all hope that our future leaders are acquiring this fundamental skill by studying hard in college today.

America's colleges and universities, and not just our most elite institutions, remain the envy of the world and dominate global rankings. The preservation of this status is vital to maintaining our competitive advantage, which is built on innovation and fueled by strong and diverse public and private higher-education institutions.

As New Hampshire recovers from the economic downturn, our highly educated population will undoubtedly serve us well. If New Hampshire and the nation are to be prepared to compete in a new global future, we should do all we can to encourage students to be as well prepared and, yes, as highly educated as they can possibly be.

Advising a student that pursuing a college degree is a bad economic decision is not only inaccurate, it's frankly just wrong.

Adapted from an op-ed originally published in the New Hampshire Union Leader on November 27, 2010.

Senate Omnibus Includes Pell Money; Cuts LEAP

2010-12-14T16:56:00.000-05:00

The Senate FY 2011 omnibus appropriations bill was released today. For student aid, it includes a $5.7 billion discretionary increase for Pell Grants, to help fill the funding gap and maintain a $4,860 appropriated maximum. With the mandatory add-on from SAFRA, the maximum grant will be $5,550. The fact that the omnibus provides discretionary funds, rather than emergency funds, for Pell is significant, because discretionary funds count in raising the baseline for the program, making the hole to fill next year smaller.

The bill also level funds SEOG and Federal Work-Study, and increases student aid administration, TRIO, and GEAR UP, but zeroes-out LEAP funding.

In creating the omnibus bill, appropriators lowered their total spending cap $20 billion below President Obama's request, as Republicans demanded. The Labor-HHS-Education subcommittee had to cut $2.4 billion below the bill written in July, thus the elimination of LEAP. While the House-passed continuing resolution (CR) includes the LEAP amount in its total, it does not ensure that the administration would fund LEAP under a long-term CR. The administration and the House both requested the elimination of LEAP as duplicative.

The omnibus also includes House and Senate earmarks. To view the committee summary, go to http://appropriations.senate.gov/news.cfm and scroll through to the Labor-HHS-Education subcommittee. Tables of earmarks by subcommittee are also available there.

It is our understanding that the omnibus bill will be filed Wednesday or Thursday, with a cloture vote Friday, and final vote Saturday. If the Senate is successful in substituting the omnibus for the House-passed CR, the House will have to vote again on Saturday, as well. Senate Appropriations Committee Chairman Dan Inouye (D-HI) insists he has more than 60 votes for passage.

Obama/Republican Tax Deal Includes Higher Ed Provisions

2010-12-07T12:54:00.002-05:00

Last night, the White House announced a deal on the tax extenders. Under the agreement, all 2001/2003 tax provisions enacted during the Bush administration would be extended for two years, through 2012.

For higher education, this includes Sec. 127 (employer-provided education assistance), and the improvements made to the student loan interest deduction and Coverdell Education Savings Accounts.

The agreement would also extend certain stimulus tax provisions for two years, including the American Opportunity Tax Credit. Finally, the deal would retroactively extend the already expired 2009 items, including the IRA charitable rollover and the tuition deduction, through 2011.

The deal was primarily negotiated between President Obama and House and Senate Republicans. Many congressional Democrats are upset that the agreement includes no income cap. The deal will need to be approved by the House and Senate.

Previous update: Higher Ed Tax Provisions Move on the Hill (Dec. 3)

Related news coverage:

Higher Ed Tax Provisions Move on the Hill

2010-12-03T15:31:00.000-05:00

Yesterday, the U.S. House of Representatives passed a $1.5 trillion extension of the 2001/2003 expiring tax provisions originally enacted under President George W. Bush, including several related to higher education. The Middle Class Tax Relief Act of 2010 would make permanent IRC Sec. 127 - employer-provided education assistance - for both graduate and undergraduate course work, and permanently extend the improvements made to the student loan interest deduction and Coverdell Education Saving Accounts.

Shortly after the bill passed the House, Senate Finance Chairman Max Baucus introduced his version of the tax bill, which will become the Senate bill. The Baucus bill includes the same permanent extension of the 2001/2003 provisions, plus a permanent extension of the American Opportunity Tax Credit (enacted in 2008 in economic stimulus legislation), and a two-year extension of the already expired 2009 IRA charitable rollover and tuition deduction provisions.

Both bills include new income cap limits of $250,000, which will be the most controversial part of the legislation, but will have no effect on the higher education provisions, unless the controversy becomes so great that the bills collapse.

The Senate bill will likely become the main vehicle in the days ahead. Stayed tuned for more updates from NAICU as legislation moves ahead.

Endowments Still Below Pre-Recession Highs, Despite FY 2010 Gains

2010-11-05T16:38:00.000-04:00

Endowment investment returns increased an average of 12.6 percent for the 2010 fiscal year, according to preliminary data released this week by the National Association of College and University Business Officers and the Commonfund Institute.

The upswing, while certainly positive news, falls well short of recovering the historic losses institutions suffered in the 2009 fiscal year, when returns plummeted an average of 18.7 percent. [See a sampling of FY 2009 endowment losses here.]

Endowment values (which take into account both returns and contributions) were hit even harder, with an average drop of 22.3 percent, according to the Council for Aid to Education. (Charitable contributions to colleges and universities declined 11.9 percent in 2009, the greatest one-year loss ever. Fund raising data for 2010 are not yet available, but it's highly unlikely that the previous year's losses will be fully regained in one year.)

Still, with the help of rebounding endowments, most college administrators are not anticipating new rounds of layoffs or widespread cuts elsewhere in their budgets, barring an unexpected and drastic market or economic downturn.

The final NACUBO/Commonfund endowment study will be released in January.

Related news coverage:

"Endowments Rebounding," Inside Higher Ed, Nov. 3, 2010

"Endowment Rebound Reduces Need for College Layoffs," U.S. News & World Report, Nov. 3, 2010

Inflation-Adjusted Net Tuition at Private Colleges Drops 11.2 Percent in Last Five Years

2010-11-01T15:32:00.051-04:00

Average net tuition and fees (published tuition and fees minus grants from all sources and federal tax benefits) at nonprofit private colleges and universities actually declined by 11.2 percent, from $12,750 in 2005-10 to $11,320 in 2010-11, when adjusted for inflation, according to the College Board.

Looking back 10 years, inflation-adjusted net tuition and fees at private colleges declined 7.4 percent, from $12,230 in 2000-01 to $11,320 in 2010-11.

The College Board also reported five- and 10-year trends for net total cost of attendance (tuition and fees plus room and board charges).

In the last five years, the inflation-adjusted net total cost of attendance at nonprofit private colleges declined 1.8 percent from $21,410 in 2005-06 to $21,020 in 2010-11.

In the last 10 years, inflation-adjusted net total cost of attendance at nonprofit private college increased 5 percent, from $20,010 in 2000-01 to $21,020 in 2010-11.

The net tuition findings were reported in the College Board's Trends in College Pricing 2010 report, which was released along with Trends in Student Aid 2010 on October 28.

The College Board's news release is here (PDF). For an overview of the news media's coverage of the College Board's reports, including the net tuition findings, click here.

Additional Data

Other pertinent data on tuition, student aid, and affordability trends from the College Board and other sources:

In 2010-11, full-time students at nonprofit private colleges received an estimated average of approximately $16,000 in grant aid from all sources and federal tax benefits. This reduces the average published tuition and fees of $27,293 to an average net tuition of $11,320.

In 2007-08 (most recent year for data), private colleges provided an estimated $19.3 billion in undergraduate student aid funding from their own resources.

In 2010-11, institutional grant aid at nonprofit private colleges increased at an average of 6.8 percent, according to a NAICU member survey [news release]. This comes on top of an increase of 9 percent last year. [Note: the College Board reports an increase of 12.4 percent in overall institutional grants from 2008-09 to 2009-10, but does not provide a figure for 2010-11.]

In 2010-11, nonprofit private colleges increased published tuition and fees by an average of 4.5 percent, the second lowest increase in 37 years. Last year, our institutions increased published tuition and fees by 4.3 percent, the lowest increase in 37 years.

The Bottom Line

Record increases in institutional student aid, and tuition increases that are the lowest in decades, have kept nonprofit private colleges affordable to students from all backgrounds, despite the economic downturn. Our colleges continue to be a great investment for many students. Independent institutions are committed to keeping tuition increases as low as possible (by enhancing operating efficiency and effectiveness) and to maintaining generous student aid policies, while providing a quality academic experience.

Snapshot: Media Coverage of the College Board's Tuition and Student Aid Reports

2010-10-28T18:27:00.000-04:00

Here's a quick look at what some of the major news media reported today about the College Board's 2010 college pricing and student aid studies. The Washington Post's headline is notable for being the only one to focus on the College Board's most surprising finding: Inflation-adjusted net tuition is lower today than it was five years ago.

Associated Press

Headline: College tuition costs climbing again this fall

Lede:

College tuition costs shot up again this fall, and students and their families are leaning more on the federal government to make higher education more affordable in tough economic times, according to two reports issued Thursday.

What's reported about nonprofit private colleges?

The average sticker price at private nonprofit colleges increased 4.5 percent, or $1,164, to $27,293.

When adjusted for inflation, the tuition increases this fall amount to 3.2 percent at private nonprofit colleges.

Estimated average net tuition and fees this fall at private colleges were $11,320. That is up from last year, but below what students paid five years ago.

The priciest private colleges are creeping closer to shattering the $60,000 ceiling in total cost to attend.

David Warren, president of the National Association of Independent Colleges and Universities, emphasized net tuition and fees have declined 7.4 percent in the past decade in inflation-adjusted dollars because colleges are expanding student aid. "Every institution that I talk to understands the absolutely critical role of aid and it's going to be the thing they try to hold at the top of the list of priorities," Warren said.

Read the full story

Christian Science Monitor

Headline: Tuition at public colleges jumps 8 percent, College Board reports

Lede:

Tuition at public college and universities continued its steep upward climb this year, rising an average of nearly 8 percent at four-year institutions. Thanks to federal stimulus funds to the states and a massive influx of federal student aid, students’ wallets didn’t feel such a huge pinch. But the recession is taking its toll.

What's reported about nonprofit private colleges? Not a thing

Read the full story

CNNMoney.com

Headline: Rise in college costs hits public schools hardest

Lede:

While heading to a private college is still more expensive than going to a state school, the price gap is narrowing: Tuition and fees are climbing at a faster pace at public schools than their private brethren.

What else is reported about nonprofit private colleges?:

The actual cost of attending a private college hasn't budged in five years when the effect of aid, room and board costs, and inflation is taken into account.

At private schools, tuition increases -- which averaged 4.5% this year and and 4.3% last year -- are the lowest in 37 years, said Tony Pals, a spokesman for the National Association of Independent Colleges and Universities.

"Despite the economic downturn, enrollment at nonprofit private colleges and universities has continued to grow because of institutional efforts to stay affordable," said Pals. "Record increases in institutional aid, and tuition increases that are the lowest in decades, are drawing more students to our colleges."

Read the full story

New York Times

Headline: As College Fees Climb, Aid Does Too

Lede:

As their state financing dwindled, four-year public universities increased their published tuition and fees almost 8 percent this year, to an average of $7,605, according to the College Board’s annual reports. When room and board are included, the average in-state student at a public university now pays $16,140 a year. At private nonprofit colleges and universities, tuition rose 4.5 percent to an average of $27,293, or $36,993 with room and board.

What else is reported about nonprofit private colleges?

In the last five years, average published tuition and fees increased by 17 percent at private nonprofit four-year institutions, but net inflation-adjusted price, taking into account both grants and federal tax benefits, decreased over the period.

Read the full story

U.S. News & World Report

Headline: Federal Grants, Tax Breaks Help Reduce Tuition Pain

Lede:

Recent—and possibly temporary—improvements to federal financial aid and tax benefits have cut the tuition price most full-time students are actually paying for college this year to levels lower than they’ve been over most of the last decade, the College Board reported today.

What's said about nonprofit private colleges?

The average private college raised its tuition by $840 to $27,290, but the average private college student actually paid $11,320 in tuition after scholarships and tax benefits were subtracted.

The average net price at private colleges increased $1,050 over the previous year's, but remained far below the average net price of the previous 10 years, which ranged from $12,000 to almost $13,500 (in today's dollars).

Read the full story

Wall Street Journal

Headline: Tuition, Pell Grants Rise in Tandem

Lede:

College tuition and fees climbed once again this year, but the burden was tempered for some students and their families by a big jump in federal aid, according to a new report by the nonprofit College Board.

What's reported about nonprofit private colleges?

At private nonprofit colleges and universities, the average price is $27,293, a 4.5% rise.

Read the full story

Washington Post

Headline: Net cost of college tuition and fees lower than in 2005, report says

Lede:

A new report from the College Board might prompt a different sort of sticker shock: The net price of college tuition and fees, after factoring in student aid and inflation, is actually lower now than five years ago.

What's reported about nonprofit private colleges?

The net price for private colleges declined in the past five years from $12,750 to $11,320. Add the cost of room and board, and private university students pay a little over $20,000, a bit less than in 2005-06.

The average total cost of a year at college in 2010-11, including living expenses, reached $36,993 at private colleges and $16,140 at public colleges.

With rising price tags and rising discount rates, private colleges are putting more of the burden on their wealthiest students even as they watch their overall revenues flatten.

Read the full story

Report Finds Substantial Increase in Use of Tax-Exempt, Employer-Provided Education Assistance

2010-08-05T17:04:00.000-04:00

A new report finds that the number of U.S. workers using tax-exempt, employer-provided educational assistance more than doubled between 1992 and 2007, with nearly one million individuals now using the benefit.

The study, conducted by the National Association of Independent Colleges and Universities and the Society for Human Resource Management, provides an analysis of who is using the Section 127 federal education tax benefit, and to what academic end. The tax exemption is set to expire at the end of 2010.

Under Section 127 of the Internal Revenue Code, employees can receive tuition assistance of up to $5,250 per year from their employers on a tax-free basis. That amount, which can be used for undergraduate and graduate-level educational courses, is both deductible to employees on their federal taxes, and free of FICA taxes to employers.

Among the report’s findings:

Nearly 20 percent of students receiving the benefit are majoring in STEM (sciences, technology, engineering, and math) subjects. Students enrolled in business, STEM, education, and health programs account for almost 75 percent of all beneficiaries.
The average annual workplace earnings of students receiving the benefit is 15 percent below the average for all full-time, year round employees.
Among employers, the military provides the largest amount of average assistance to undergraduates ($2,547). Colleges and universities offer the largest average assistance to graduate students ($3,277).
The average age of an undergraduate student receiving Section 127 benefits in 2007 was 37.
Approximately 913,100 students received Section 127 benefits during the 2007-08 academic year, compared to 431,500 students in 1992-93, a 112 percent increase.

The report, titled Who Benefits from Section 127?, is available in PDF format at www.naicu.edu/Section127.

Student Aid Alliance Requests $5.5 Billion in Emergency Supplemental Funding for the Pell Grant Shortfall

2010-05-07T14:39:00.003-04:00

The Pell Grant shortfall is a result of a multi-year, recession-driven spike in the number of program participants. The economic downturn has resulted in increased student financial need, and a rise in displaced workers going back to college for additional training.

Over the last two years, Pell Grant applications have grown 20 percent. During normal economic times, 3 percent annual increases are typical. While the recently enacted student aid reconciliation bill retired much of the accumulated shortfall, an additional $5.5 billion is needed to make the program whole.

See the Student Aid Alliance letter to the full House and Senate (pdf)

See the Student Aid Alliance FY 2011 appropriations request (pdf)

Congress Passes Reconciliation Bill: What Are the Implications for Colleges and Students?

2010-03-25T21:49:00.002-04:00

The House has approved the health care and student aid reconciliation bill that had been approved by the Senate earlier in the day. This bill now will be sent to the president for signature.

The legislation has the following implications for colleges and students.

Student Aid

The new Pell Grant maximum of $5,550, which goes into effect July 1, will stay in place (subject to appropriators maintaining base funding of $4,860) through 2012-13. Effective July 1, 2013, for five years, the grant will increase by the previous year's CPI rate. After those five years, funding will plateau. The bill provides $36 billion for these increases.

Regarding student loans, effective July 2015, new borrowers will be eligible for a new income-based repayment plan. The plan will allow student loans to be forgiven after 15 years of repayment, instead of 20 years, as currently required.

These improvements are paid for by requiring all colleges to convert to direct lending by July 1, 2010. A $50 million fund has been created to assist colleges in this conversion effort.

Health Care Provisions of Importance to Higher Education

Colleges and universities that offer health insurance may continue to do so. Early Senate language unintentionally restricted student health insurance, but this was corrected in the final bill.

Students will now be able to stay on their parents' insurance through age 26. The change is effective this September.

There will be new limitations on Flexible Spending Accounts (FSAs). Also there is a new surtax on so-called "Cadillac" insurance plans will take effect in 2018. The new 40 percent excise tax will be imposed on health insurance plans valued over $10,200 for individuals, or over $27,500 for families (indexed for inflation). Many plans offered by colleges could be affected.

Chronology of Actions Leading to the Reconciliation Bill

This has been a long journey, through difficult waters. Here is a timeline (pdf) NAICU has compiled, should you be interested in reviewing the many twists and turns as this very complicated bill unfolded.

Student-Aid State of Play

2010-03-22T18:00:00.002-04:00

A wrap up of the landmark legislation passed by the House last night:

What Happened

The House approved, without amendment, the health care reform bill that passed the Senate on December 24, 2009, by a vote of 60 to 39. Although many members of the House had concerns about the Senate bill, they approved the measure without changing it to avoid a conference between the two chambers. The president is expected to sign the bill immediately.

The House then approved a reconciliation bill that does two things:

(1) makes changes to the new health bill that were negotiated in advance, in lieu of a conference; and

(2) includes $36 billion for Pell Grants to address the program’s pending funding crisis. The money for Pell Grants comes from the conversion to direct lending. The entire reconciliation bill now has to be approved by the Senate. That could occur as early as this weekend. Reconciliation only needs a simple majority to pass, not the 60 votes required to stop a filibuster.

What's Next

It appears that the Senate has the necessary votes to pass this legislation. However, the Senate is never predictable, and more twists and turns could lie ahead. This week’s action will center on attempts by Senate Republicans to find provisions in the bill that violate the very strict budget reconciliation rules. A single violation of these rules could change the bill and force it back to the House for another round of voting. It is up to the non-partisan Senate Parliamentarian to rule on any Republican challenges to the reconciliation bill.

We will keep you informed as the legislative process continues to unfold.

Student Aid Funding: What’s in the Reconciliation Bill?

2010-03-19T17:13:00.000-04:00

Funding for Pell Grants will be included, along with health care, in the reconciliation bill that the House is likely to vote on this Sunday. Note that there is no state-wide higher education reform, no K-12 school construction, and no early childhood education reform included in this deal. Also, the proposed new programs for community colleges were eliminated, although some worker retraining funds were provided under an existing Department of Labor program (see below). Here is a summary of the education provisions in the bill.

Direct Loans and Pell

As of July 2010, all student loans will be direct loans, providing a savings of $61 billion over 10 years. From that amount, roughly $40 billion will go into the Pell Grant program. The bill also provides an additional $50 million for technical assistance to institutions transitioning to direct lending.

More specifically, $27 billion is provided, to be allocated as follows.

The Pell grant maximum will stay at $5,550 until FY 2013.
Beginning in FY 2013, the maximum grant will increase above that level by the CPI each year until FY 2018 (estimated to reach $5,979 in FY 2018).
In FY 2019 and beyond, the maximum grant will remain at the FY 2018 level.

An additional $13.6 billion is provided to pay for the prior-year shortfall, and maintain the current appropriated base of $4,860 for one year. This is a one-year fix. In later years, this will not be an easy Pell Grant base for appropriators to maintain. The program is becoming increasingly expensive, and it is unlikely that there will be additional domestic discretionary funding available to fund increased Pell Grant program costs.

Other Loan Provisions

During academic year 2010-11, permits some in-school borrowers to consolidate to direct lending.
$1.5 billion over 5 years to expand income-based repayment for new borrowers, starting in July 2015.
$25 million to retain loan servicing jobs for FY10 and FY11.
Provision for state-owned banks to continue providing federally guaranteed student loans was dropped last night.

There is nothing in the bill on Perkins Loans.

Other Programs

For other higher education programs, the bill provides $2.5 billion for Minority Serving Institutions, and $750 million for the existing College Access Challenge Grants.

There also is a last-minute addition of $500 million per year for four years ($2 billion total) for Community College and Career Training Grants. This gives money to a previously unfunded Trade Adjustment Assistance job training program to help individuals eligible for unemployment insurance. This is paid for out of the Finance Committee, not out of the student loan savings, and is run out of the Department of Labor. Worker training programs of two years or less at any institution eligible for federal student aid could be eligible for these funds.

Other Uses of Student Loan Savings

$9 billion toward two health care provisions out of the HELP Committee. (The rest of the health care provisions are paid for by the Finance Committee.)
$10 billion in deficit reduction over 10 years.

Status of the Process

The Rules Committee will not meet regarding this before 2 p.m. Saturday. A vote in the House cannot take place until 24 hours after the Rules Committee meets. Once the House votes, the Senate will begin consideration--most likely next week.

Ed Sector/AEI Report Misses the Point of U-CAN

2010-03-19T15:41:00.000-04:00

Both Inside Higher Ed and the Chronicle of Higher Education recently covered the Education Sector/AEI report on the U-CAN and VSA college consumer information Web sites. Both articles included comments from NAICU, which in coordination with the nation's state-based private higher education associations, created U-CAN. Since then, a handful of higher ed blogs have reported on Ed Sector/AEI's assessment.

For the record, here is NAICU's response to the study:

We appreciate and share Education Sector’s and AEI's commitment to increasing higher education's transparency and accountability to the marketplace.

However, we respectfully disagree with their assessment of the value of U-CAN in informing prospective students and their families. Since its launch in 2007, the site has been praised by policymakers, admissions counselors, consumer reporters, and, most important, students and parents themselves. Most recently, U-CAN was named one of the top 10 college search sites by CBSMoneywatch.com.

The report largely misses the point of U-CAN. The study criticizes U-CAN's repackaging of existing data, without acknowledging that consumers historically do not know where to find this information in a consumer-friendly format. This is what U-CAN aims at and succeeds in delivering. Focus groups with higher education consumers, conducted nationwide, shaped U-CAN's design and content. The Ed Sector/AEI report fails to note that U-CAN provides original data on institutional net tuition--information that was a precursor to the new federal requirement. This element was added at the insistence of focus group participants.

It's important to note that the impetus for U-CAN was Rep. Buck McKeon's call for a simpler, less confusing way to get the vast reservoir of existing information on cost out to families in an institutionally comparable format. McKeon was frustrated by the complex nature of the Education Department's own college information Web site--COOL--which he had helped to create.

U-CAN was not a response to the Spellings Commission's call for learning outcomes. The wide diversity of private higher education's institutional missions makes a standard measure, or set of measures, of outcomes impossible. For this reason, U-CAN does not--and will not--prescribe one-size-fits-all learning measures for participating colleges.

U-CAN launched with 440 college and university profiles in 2007, a number that has grown to 708. By being cognizant of the reporting burden that U-CAN could impose on institutions, NAICU has ensured that this voluntary effort draws in as many private colleges as possible, for the benefit of consumers. We are proud of the role U-CAN plays in enhancing institutional transparency, and in making the college search process easier for prospective students and parents. An informed consumer is much more likely to find the college that best fits his or her needs. That is what U-CAN is all about.

Discouraging a College Education: “Unconscionable”

2010-03-10T18:01:00.003-05:00

NAICU’s letter to the editor in response to Ramesh Ponnuru’s “The Case Against College Education” didn't make it past the gatekeepers at Time, so here it is in its entirety. With the job market in the dumps and college tuition (although not net tuition) rising faster than inflation, the naysayer message on college attendance will likely echo for a while, despite overwhelming statistical evidence of the value of a college degree.

Letters to the Editor
Time

February 25, 2010

To the Editor:

Re: "The Case Against College Education"

One has to wonder how many Ivy League-educated magazine columnists will encourage their own children to forgo a college degree, under the theory that it won't bear on their future professional success and quality of life.

Ramesh Ponnuru's call to discourage more students and adults from earning a college degree is a prescription for a de facto American socio-economic caste system and unmet national economic potential. Such advice inevitably is targeted to students from blue-collar and low-income families. Because of cultural and financial hurdles, these students are already less likely than their wealthy peers to consider college, even when academically prepared for it. In a nation that prides itself on unlimited opportunity for those who set high goals and work hard, promoting low educational expectations is un-American and unconscionable.

According to the Bureau of Labor Statistics, workers with a bachelor's degree outearned workers with just a high school-diploma by 64 percent in 2008. They also were half as likely to be unemployed during the recession. The BLS reports that over the next 10 years, jobs in the U.S. economy requiring a college degree or higher will grow faster than those requiring just postsecondary vocational training. With data like this, it's easy to understand why American elites let their children know from an early age that they are on the college track.

The real issue isn't that too many people are enrolling in college, but that not enough of them earn a degree. Private, nonprofit institutions, which already have the nation's highest graduation rates, are taking on President Obama’s challenge to increase college completion by 2020, by expanding access and completion support programs at a rapid rate. At the same time, private colleges are redoubling efforts to stay affordable, by boosting student aid and cutting institutional costs. Our colleges have actually lowered inflation-adjusted net tuition (list tuition minus grant aid and federal tax credits) by 8.6 percent over the past five years, according to the College Board.

A highly educated workforce is the foundation for America’s continued economic strength and global leadership. The challenges facing the nation and its workers and families call for raising the national bar for educational achievement -- not lowering it.

Sincerely,

David Warren
President
National Association of Independent Colleges and Universities

"Coming Clean" on Student Access and Success

2010-01-08T17:09:00.004-05:00

Over the holidays, the editorial page of the St. Louis Post-Dispatch took up the cause of student unit databases, endorsing the idea of state-run systems that would track individual students from elementary school to the post-collegiate workplace. The P-D called for private colleges and universities to "come clean" on student access and performance.

Here's NAICU's response, as published in the paper on Jan. 2.

To the Editor:

Let me make two key points regarding the poorly informed and acerbic comments on private colleges and universities in the editorial "Scoring higher ed" (Dec. 28):

First, private colleges' concerns about release of student data relate to broad-brush proposals now being considered, and having the potential to make public every aspect of an individual student's academic record — course-by-course grades, teacher recommendations, disciplinary actions and more. That dossier would be maintained, updated and accessed by state governments, following the person into the workplace and throughout his career. We see that as a violation of individual privacy that is unwise and unnecessary in documenting the performance of colleges and universities.

The fact is that the U.S. Department of Education already collects the data necessary for determining individual college completion rates for low-income students through the student-specific records of those receiving federal aid, such as Pell Grants, whether they attend public or private institutions.

Second, existing data already prove that private colleges have nothing to be embarrassed about in meeting the needs of low- and moderate-income students. U.S. Department of Education statistics show that, nationally, 22 percent of four-year private college students have annual family incomes below $25,000, just four points below four-year public institutions. For those with family incomes of $25,000 to $100,000, there is only 1 percentage point difference between public and private institutions.

It is in graduating students, however, that private colleges shine.

Of those undergraduate students receiving a baccalaureate degree within six years, Education Department data show that 79 percent of private college students earned their bachelor's degree in four years, compared to 49 percent of those at public institutions. Of those who are first in their family to attend college, 61 percent attain their degree in six years from a private college, while only 44 percent do so at public colleges.

For examples of private colleges' role in accessibility, you need have looked no farther than St. Louis itself. Washington University in St. Louis replaced all loans with university grants for students with family incomes under $60,000. And at other local private institutions — Maryville, Missouri Baptist and Webster universities, for example — the student bodies include approximately 20 percent to 30 percent low-income students.

All of these institutions deserve better than they received in the editorial.

David L. Warren
President, National Association of Independent Colleges and Universities
Washington, D.C.

More Accolades for U-CAN

2009-11-17T17:10:00.002-05:00

U-CAN, NAICU's college information Web site, continues to draw praise from experts on the college search process.

CollegeExplorations.com reports that U-CAN was named one of the top college search sites during a recent gathering of independent college consultants. Participants considered "accuracy, ease of use, breadth of information, and currency of data sources" in choosing their six favorite Web resources. A day earlier, AdmissionsAdvice.com wrote that U-CAN "is a terrific resource for quickly comparing facts and data in standardized form." Since its launch in 2007, U-CAN has generated accolades from admissions experts, consumers, and policymakers.

U-CAN, which features more than 800 college and university profiles, is close to completing its 2009 data update. Make sure to visit the site in mid-December for the most recent institutional information.

Honoring -- and Supporting -- Those Who Have Served

2009-11-11T18:01:00.002-05:00

Private colleges and universities across the nation marked Veterans Day in a variety of ways. In addition to campus observances, several announced new student veteran support services and others got word out about the opportunities provided by the new GI Bill.

Here's a quick, far-from-exhaustive sampling of what's happening on private college campuses.

Today Boston College dedicated a memorial wall in honor of 209 alumni who died while serving in a war zone, while Harvard University, with the U.S. Army Chief of Staff in attendance, honored its 16 alumni who have received the Medal of Honor. (Boston Globe)
Drexel University yesterday dedicated a new veterans office. Veteran enrollment at the institution is up 15 percent over last year. (Philadelphia Inquirer)
During a campus reception for military veterans today, Pacific University recognized a 2009 graduate who escaped harm last week during the shooting at Fort Hood, where she is preparing to be deployed. (Oregonian)
Syracuse University's Whitman School of Management just announced that it is expanding its free entrepreneurship "boot camp" for disabled veterans to a sixth institution. (Syracuse Post-Dispatch)
Xavier University yesterday announced the formation of a new veterans affairs office, to attract and support the growing number of military veterans returning to college. (University news release)
Saint Leo University held an observance and a free lunch for veterans and their families today, followed by a day of community service in the afternoon. (Tampa Tribune)

In recent days, a number of newspapers have published pieces by college and university officials -- including those at Le Moyne College, Marist College, Rochester Institute of Technology, and Saint Leo University -- that highlight the new higher ed opportunities that now exist for veterans. Across the nation, hundreds of private, nonprofit colleges and universities are participating in the new GI Bill Yellow Ribbon program.

In addition, the American Council on Education launched a Web site two days ago to help educate veterans about the new GI Bill and encourage them to take advantage of its benefits. Meanwhile, the Christian Science Monitor published an editorial yesterday that noted the difficulties facing many student veterans who are still waiting for their stipends to arrive from the VA. The editorial encouraged the agency and colleges to "do right by student vets," while recognizing the efforts being made by institutions to serve the veteran population.

Presidential Compensation: "Paying the Smart Money"

2009-11-04T17:31:00.000-05:00

The Los Angeles Times' editorial page follows up two days of heavy national media coverage of the Chronicle's presidential compensation report with a defense of executive salaries at private colleges (while imploring them to better control overall institutional costs).

From the editorial:

We agree that colleges and universities could do more to contain costs. The academic arms race for prestige names has kept tuition costs on an inexorable, family-budget-crushing trajectory upward, regardless of the pain in the rest of the economy. ...

But excellent college leadership is necessary, now more than ever, and that costs. University presidents usually are respected scholars in their own right who must combine a broad grasp of academic issues with administrative and public relations skills -- and perhaps above all, a knack for fundraising. Great university management draw great faculty, who in turn attract top students, fellowships, and grants."

The piece also provides some important context for the Chronicle's figures:

"[B]efore you start yelling "excesses of the financial industry all over again," it's worth noting that this elite club [of million-dollar packages] is still tiny -- 23 college presidents among the 419 reviewed by the publication. ... As the economy spiraled downward in 2008, many college leaders took no raises or volunteered for pay cuts.

The total number of private, nonprofit colleges and universities in the U.S. is approximately 1,600. For the most part, the Chronicle looked only at institutions that reported expenditures of at least $50 million on their 2007-08 Form 990s.

For a sense of what NAICU has been saying about presidential compensation, see U.S. News' and Bloomberg's coverage.

Inflation-Adjusted Net Tuition at Private Colleges Drops 8.6 Percent in Past Five Years

2009-10-21T17:54:00.001-04:00

Missed in most of the coverage of the College Board's just-released annual tuition and student aid trends reports is this important piece of information:

Net tuition at private, nonprofit four-year colleges declined 8.6 percent ($1,120) between 2004-05 and 2009-10, in constant 2009 dollars. Inflation-adjusted net tuition this year is also lower than what it was 10 years ago -- $11,870 vs $12,150, respectively, in constant 2009 dollars. (See figure 7 in Trends in College Pricing 2009.)

Students at private colleges have seen healthy increases in grant aid from their institutions and the federal government in recent years. In addition, the College Board reports that average annual percentage increases in inflation-adjusted published ("sticker") prices at private colleges rose at a smaller rate over the last 10 years (2.6 percent) than in either the '90s (2.9 percent) or '80s (4.7 percent). (See figure 4 in Trends.)

This isn't to say that private colleges and universities are satisfied with the current state of college affordability. They aren't. They will continue to work to ensure they remain accessible and affordable to students from all backgrounds. Nevertheless, this new net tuition data is a reminder of the very real efforts they have already taken.

California Budget Cuts and Private College Enrollment

2009-10-16T16:08:00.000-04:00

Will state budget cuts in California boost enrollment at the state's private colleges, especially as independent institutions increase student aid and think creatively about how to enhance affordability?

For example, it's hard to imagine that the new program announced by the private, nonprofit University of San Francisco won't generate interest. Starting in January, the Jesuit institution will offer some general education classes at a 50-percent discount "to help non-USF students trapped by the devastating budget cuts at California's public universities, and give them the classes they need to graduate."

As one USF official told the local press:

“What we’re really trying to respond to is this pent up need on the part of students who can’t get into the classes they need to graduate or to remain full-time students through the Cal State systems,” said Jennifer Turpin, dean of the College of Arts and Sciences at USF. “Many of these students were calling us to say ‘help.’ … That prompted us to say that we already have a presence in these regions, let’s start offering classes for undergraduates.”

Further down the coast, California Lutheran University, which introduced a public university tuition match for the 2008-09 academic year (and expanded eligibility for it this year), announced a record number of new students this fall.

According to CLU:

Budget cuts at state institutions, the extension of the "CLU Guarantee Scholarship: Private Education, Public Price" to transfer students, and increased outreach to community colleges all contributed to the surge.

And back up in Northern California, William Jessup University, which cut tuition by 2.5 percent for 2009-10, enrolled its largest-ever class this fall.

Affordability and Access ... in Connecticut and Nationwide

2009-10-13T16:00:00.006-04:00

The Hartford Courant published this letter from NAICU President David Warren and Judy Greiman, president of the Connecticut Conference of Independent Colleges over the weekend, under the header "College Dreams Need Not Be Deferred":

October 11, 2009

There's no question that the economic downturn has added to the pressures of paying for college [CTLiving, Oct. 7, "Dreams Deferred"]. However, it is important to note that because of student aid increases and other measures, private, nonprofit colleges and universities are still an affordable option for most students and families.

Because of the recession, some students who otherwise would have enrolled at a private college have had to turn to community colleges and public universities. But they have proved to be the exception, not the rule.

Nationwide, tuition and fees at private colleges this year increased by the lowest average rate in 37 years (4.3 percent), while institutional student aid rose by 9 percent. Many private colleges have set up reserve student aid funds for students whose families have been hit hard by the recession.

Increased funding for Pell Grants, work-study and federal student loans this year have also helped. In Connecticut, support for state-funded need-based aid has been strong in spite of the state's budget problems, and its private institutions award more than $457 million in institutional student aid.

As a result, enrollment at private colleges and universities nationwide increased for 2009-10. The bottom line for students and families is not to let sticker shock stop you from considering a private college or university. Because of student aid, independent higher education remains a great investment.

Judith B. Greiman, president, Connecticut Conference of Independent Colleges, Farmington

David L. Warren, president, National Association of Independent Colleges and Universities, Washington, D.C.

Cutting Student Aid to Make College More Affordable?

2009-10-08T11:42:00.021-04:00

The libertarian argument that cutting federal student aid would ultimately make higher education more affordable gets some ink today in the Washington Post. Here's what we posted in response on the Post's Web site. [The following comment was amended on Oct. 15 to correct an error by NAICU.]

To suggest, as Mr. McCluskey does, that federal student aid does not make higher education more affordable and accessible -- and instead is "eaten up" by colleges -- without having conclusive empirical evidence to back it up, is a dangerous game -- particularly at a time when (1) more low-income students and unemployed workers are seeking postsecondary education and (2) America's long-term economic health is increasingly dependent on a highly educated workforce. Educational opportunity for American students and our nation's global competitiveness cannot be put at risk solely based on an economic theory.

Federal studies*, during both the Bush II and Clinton administrations, found no conclusive evidence of a relationship between federal financial aid and tuition.

If anything, recent campus actions suggest that increases in federal student aid actually help to temper tuition growth. Private, nonprofit colleges and universities raised tuition in 2009-10 by the lowest rate in 37 years (4.3 percent). At the same time, they increased institutional student aid by 9 percent. These significant measures were possible only because funding for Pell Grants, Federal Work-Study, and federal student loans increased this year, helping to take some of the pressure off of strained campus budgets.

The Chronicle and Mary Beth Marklein's blog also reported yesterday on the free-market argument for ending federal student aid, made by Cato's Neal McCluskey at an event on Tuesday.

* Study of College Costs and Prices, 1988-89 to 1997-98, Vol.1, National Center for Education Statistics, December 2001; Straight Talk about College Costs & Prices, National Commission on the Cost of Higher Education, February 1998

Barcodes Revisited

2009-10-07T10:52:00.003-04:00

Google today is observing the 57th anniversary of the barcode, by replacing its logo with, well, a barcode. With efforts underway to create a national network of state databases that would track every individual student from kindergarten through -- and beyond -- college graduation, Google's commemoration called to mind this editorial cartoon (published in the Seattle PI), from a few years ago.

While the U.S. Department of Education's barcode proposal was eventually withdrawn, and attempts to create a federal tracking system dropped, the threats posed by a national tracking system to student privacy and to the autonomy of private colleges and universities are still very real.

Endowment Losses and How They Impact Students

2009-10-06T12:41:00.002-04:00

Here's an updated run-down of FY09 endowment numbers for several well-endowed private institutions. (See the earlier run-down here.)

Institution: FY09 Investment Return | FY09 Change in Endowment Value

Amherst: -20% | -23%
Brown: -23% | -27%
Columbia: -16% | -20%
Cornell: -26% | -26%
Harvard: -27% | -30%
MIT: -17% | -21%
Penn: -16% | (not yet available)
Princeton: -24% | -23%
Stanford: -26% | -27%
Williams: -18% | -22%
Yale: -25% | -29%

(Changes in endowment value reflect not only investment performance, but also donations and outlays.)

Colleges and universities -- large and small, private and public -- have been hit hard by the recession. As NAICU's most recent economic impact survey makes clear, private, nonprofit institutions are making deep budget cuts. However, for consumers, it's worth noting that those cuts have been concentrated in areas other than student aid or academic programs. Only 3.9 percent of the private, nonprofit colleges responding to NAICU's survey have cut into academic budgets, and just 4.9 percent have reduced funding for student aid.

For the 2009-10 academic year, private, nonprofit colleges and universities increased student aid by an average of 9 percent. Well-endowed institutions, such as the ones listed above, have been on the forefront of new major student aid initiatives in recent years -- replacing loans with grants, eliminating tuition for low- and middle-income students, and taking other significant steps to lower out-of-pocket costs for families. By all accounts, despite the recession, these institutions are standing by those programs.

Tuition Assistance for Laid-off Workers

2009-10-01T18:42:00.002-04:00

Barry University announced earlier today that it is cutting tuition for its adult and continuing education programs by 20 percent, for new or inactive students who have recently lost their jobs. The reduction applies to undergraduate and graduate classes, and remains in effect until the student completes his or her academic program.

Barry joins a growing number of private, nonprofit colleges that have programs to assist unemployed workers.

Beginning this semester, the Drexel University Center for Graduate Students will offer half-tuition scholarships for academically qualified applicants who have been laid off and are unable to find a new job.
In July, St. John's University announced it would extend its alumni assistance program, which offers a 50-percent tuition discount on graduate programs for alumni who have been laid off.
Late last year, Lawrence Technological University announced 400 newly created "Recovery Grants" that provide 50 percent of tuition for eligible displaced workers or their dependent children.

In addition, many private institutions have created financial-aid reserve funds for students whose families are struggling with unexpected hardship because of the economic downturn. (See, for example, Benedictine University's Displaced Earner Program.) Other new institutional affordability efforts -- tuition cuts and freezes, historically low tuition increases, programs that replace loans with grants, three-year bachelor's degrees, and more -- are designed to reduce out-of-pocket costs for even more students.

Barry University, which participates in the Yellow Ribbon component of Post-9/11 GI Bill program, is also extending the 20-percent reduction to qualified veterans who enroll in the university's school of adult and continuing education.

More Research on Fall Enrollment Trends

2009-09-30T16:06:00.001-04:00

Maguire Associates issued a press release on fall enrollment trends yesterday, reporting that "while it turned out to be a surprisingly good year for many institutions, not all of them made it through the cycle unscathed." This generally echos what NAICU has found among private, nonprofit colleges and universities, through our survey work and reports from the field. According to Maguire, enrollment fell by more than 3 percent at 26 percent of private colleges and 16 pecent of public institutions. (That 16 percent figure is actually higher than we would've expected, given the many news stories about the recession-driven influx of students at public institutions.) The release also comments on the impact of discount rates and efforts made by admissions staffs, on institutional success.

Myth Busting on the Value of Higher Education (and a Point on College Completion Rates)

2009-09-28T14:25:00.008-04:00

David Leonhardt hits on several points in the NYT Magazine yesterday, but at the core of his piece is overwhelming evidence of the economic benefits of a college degree.

[T]he work that labor economists have done suggests that colleges do indeed deserve credit for much of the earnings gaps between their graduates and everyone else. The median earnings of full-time workers with bachelor’s degrees was nearly $47,000 in 2007, according to the Census Bureau. The median for someone who had attended college but failed to get a four-year degree was nearly $33,000, and the median for a high-school graduate was nearly $27,000. Compare these numbers with the typical education debt that a college student has on graduation day — $20,000 — and it’s clear that a college education is worth the debt.

He continues by sharing an observation by Michael McPherson that "even the pundits and professors who suggest otherwise seem to understand this; they tend to send their children to college, often to quite expensive ones."

Further statistical evidence of the economic benefits of a college degree, which we've compiled from other sources:

The unemployment rate for college graduates in July was half that of workers with just a high school degree: 4.7 pecent vs. 9.4 percent.
College graduates earn an estimated $500,000 to $1 million more than high school graduates over their lifetimes.
According to Bureau of Labor Statistics data, 65 percent of the fastest growing occupations with above-average wages over the next 10 years will require a bachelor's degree.

It's true that a four-year bachelor's degree program may not be the best option for all students. However, for the vast majority of students with the ability, drive, and financial and academic support to earn a four-year degree, it will be the best investment they will ever make in their futures, even if they have to take out federal student loans.

This isn't the first time this month that Leonhardt has responded to recent media coverage questioning the value of higher education in the current economic climate.

It also isn't the first time this month that he's written about the need to boost national college completion rates. (Like we said, he touched on several issues.) From yesterday:

[S]keptics do make one crucial point. Nationwide, half of all students who start college don’t end up with a four-year degree. [...] Some would-be dropouts may stay in school if Congress approves a pending proposal to increase Pell Grants to needy students. Still, college tuitions are rising and resources are being cut — two factors that affect graduation rates. Federal spending cushions the blow but isn’t large enough to make up for state cutbacks.

Although students at private, nonprofit colleges and universities (regardless of their family background or level of academic preparation) are much more likely to graduate in four or six years than their peers at public universities, we know that by working together colleges and the nation can do better, despite the many challenges we face.

This means increasing federal and state aid to meet growing student financial need, continuing institutional efforts to keep student out-of-pocket costs as low as possible, and enhancing government and institutional programs designed to encourage college completion and retention.

Another Private College Considers 3-Year Bachelor's Degrees

2009-09-24T12:08:00.004-04:00

As reported earlier this month in the Springfield, Ohio, News-Sun, Antioch College (which plans to reopen in fall 2011), is considering a three-year, year-round model. It could become one of a growing number of institutions that have embraced three-year bachelor's programs. The economic downturn is sparking new interest in these programs, which have been around for a number of years, but at just a handful of institutions.

NAICU knows of three private colleges that launched three-year degree programs for 2009-10. They will be watched closely by other colleges and policymakers. The idea of these programs is popular among elected officials, who like the cost savings they associate with them. Earlier this year, lawmakers in Rhode Island were considering a bill that would allow students to earn a bachelor's degree in three years at state institutions. (We're not sure what became of the legislation.) At ACE's 2009 annual meeting, Senator Lamar Alexander encouraged institutions of higher education to commit to the concept.

The three-year model is common in Europe. Historically, educators and students in the U.S. have been less enamored of them. According to the most recent data from the U.S. Department of Education, in 2001, 4.2 percent of U.S. undergraduates graduated with their bachelor's degree within three years, 57.3 percent graduated within four years, and 38.5 percent took more than four years to graduate. However, the economy could very well encourage more students (and their parents) to look twice at the three-year option. For academically well-prepared and highly-focused, motivated students, in particular, three-year programs could be appealing.

FY09 Endowment Losses

2009-09-23T17:22:00.005-04:00

Today's Bloomberg story on Stanford's endowment concludes with the most comprehensive (but still relatively short) list of FY09 endowment losses that we've seen so far.

Add to Bloomberg's list Penn, and we're looking at investment losses that range from 16 percent to 27 percent over the last year at several private institutions. (Note: Bloomberg's list includes data for both investment returns and changes in endowment value.)

FY09 Investment Return

Amherst: -20%
Brown: -23%
Columbia: -16%
Cornell: -26%
Harvard: -27%
MIT: -17%
Penn: -16%
Stanford: -26%
Williams: -18%
Yale: -25%

Meanwhile, higher education resources are being strained also by a drop in fund raising, and a sharp increase in the number of students applying for financial aid.

Fall Enrollment at Many Private Colleges Exceed Expectations

2009-09-21T14:01:00.009-04:00

These are tight financial times for private, nonprofit colleges and universities. However, on the enrollment front, many of these institutions are faring better this fall than was predicted earlier in the year. While a number of private colleges face enrollment challenges, NAICU expects that most institutions will meet their goals. This assessment is based on our July survey results and conversations with college leaders over the summer.

As seen here, several private colleges are announcing record, near-record, or otherwise successful enrollments for Fall 2009. See the related NAICU Washington Update article for context, including some reasons for the better-than-expected numbers.