| Lower college costs (4/08) | | Print | |
| Written by The Lowell Staff | |
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More painful than guessing admissions decisions off of big and small envelopes is estimating financial aid packages based on a college’s endowment size. Many of the nation’s most wealthy, elite, selective universities do not seem to want to boast one more adjective — generous — to their impressive descriptions.
Tuition costs remain at an all-time high at some of America’s richest institutions. Their desire to maintain a “safety net” of high endowments is understandable, but some colleges have taken the act of saving too far. More than 136 private colleges have endowments of over $500 million, and 76 have endowments of $1 billion or more, according to a 2007 endowment study by the National Association of College and University Business Officers. Colleges should use such endowments to make their schools more affordable. Some colleges have taken impressive steps in this direction. Prompted by the Senate Finance Committee’s criticism of their hefty endowments and tuition costs, wealthy universities like Stanford and Brown have decided to broaden financial aid packages to reach middle-class students. They are following Harvard’s example of a financial aid initiative passed in 2004 which replaces loans with grants and reduces the amount families with incomes under $180,000 would have to pay, giving full scholarships to families with incomes under $60,000. Recently, Brown and Stanford eliminated loans, choosing to offer full scholarships to families with incomes less than $100,000 and discounting on tuition for families making more. Hopefully, more institutions will join these universities in giving substantial financial aid packages that target a larger demographic. College endowments average a 17.2-percent rate of growth yearly, and the money is tax-exempt, according to the Senate Finance Committee. The 10 richest universities own more than one-third of total endowment assets in all colleges and universities, yet the percentage that they spend each year on maintenance, research and financial aid is among the lowest. If the 136 wealthiest colleges in the nation want to be seen as offering opportunity to a diverse socio-economic group, they need to allocate more of their endowment to the effort than the 5 percent that they currently spend. For a more long-lasting approach, colleges should consider lowering nominal tuition and housing costs. Full Stanford tuition costs $36,030. With room and board at $11,182, a Stanford education costs nearly 50 grand a year. These daunting figures will deter a moderate-income student from applying even before she calculates financial aid. Lowering tuition and housing costs would not belittle a university’s prestige or quality of education, but simply send a stronger message that the school is willing to meet students’ needs. Students should not have to base college choices on affordability. Apportioning college wealth to soften tuition costs will make educational dreams come true for a greater range of students. A college is not a business — its goal is not profit, but the well-being of students and maintenance of the integrity of its name. |
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to listen.
