A Message from NAICU President David L. Warren on the Economic Downturn and Private Colleges

Every private college and university president understands the financial challenges facing students and families, and their concerns about growing college tuition. In these tough economic times, job one of every private college and university will be keeping their student aid budgets in line with growing financial need, and working creatively to keep out-of-pocket costs as low as possible.

In the coming months, we will see independent institutions digging deep to find the financial resources necessary to remain an affordable option for students from all backgrounds. Spending in other areas of campus budgets will be curtailed at many institutions, as endowment returns fall and fund raising slows. Some institutions will implement hiring freezes, and some will put campus construction and renovation projects on hold.

No student should rule out a private college and university without first checking with the institution about financial aid options. Over the past 10 years, independent institutions have increased student aid by 250 percent, more than three times the rate of tuition (72 percent). Students at private colleges receive six times as much in grant aid from their institutions as from all federal sources. Eighty-one percent of full-time, dependent students at private colleges receive institutional grant aid, averaging $10,011. As a result, our institutions enroll the same percentage of low-income and minority students as public four-year universities.

Private colleges will think and act creatively to enhance their affordability while maintaining quality, within their financial means. Already, Augustana College has announced that its 2009-10 tuition increase will be its lowest in 25 years, Benedictine University is freezing its tuition rate for the next two years, and Vanderbilt University will begin replacing need-based loans with grants next year.