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Another Highlight

Private Colleges and the Economic Downturn


How private colleges are being impacted -- and responding to -- the economic turmoil

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Private Colleges Respond to the Economic Downturn

The impact of the credit crunch, stock market drop, and the nation's economic turmoil are straining both family and institutional budgets.

In light of the economic downturn, private colleges and universities are taking substantial steps to cut their costs, stay affordable to consumers, and help students and families prepare financially for next year.

Listed below is a compilation of the actions being taken by institutions.

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Agnes Scott College (Atlanta/Decatur, Ga.) - Affordability initiative

ASC's 2009-10 price increase is the college's smallest percentage increase in 35 years. The overall increase in tuition, mandatory fees, and room and board is 2.69 percent, which is approximately half the rate of inflation. In addition, the newly launched "Agnes Solution" initiative will guarantee $64,200 in merit aid over four years to students eligible for a Georgia HOPE scholarship.
.....

Allegheny College
(Meadville, Pa.) - Helping families plan ahead
 
Allegheny College is helping families, many of whom are stressed by the turbulent economy, determine the actual future cost of college by providing prospective students with an early estimation of need-based financial aid and merit-based scholarship dollars. For 2009-10 estimates, families must complete a brief online or print form by December 31, 2008. (Source: Campus press release)
.....

Augustana College
(Rock Island, Ill.) - Affordability initiative, Helping families plan ahead

Augustana College announced that tuition will increase by 3.9 percent for the 2009-10 academic year -- the college's smallest percentage increase in 25 years. What may be more notable than the size of the increase is that it is being announced so far in advance. (Source: Inside Higher Ed)
.....

Benedictine University
(Lisle, Ill.) - Affordability initiative

Benedictine University is freezing tuition prices in response to the growing economic crisis. Tuition costs will be frozen through spring 2010 for traditional undergraduate students already attending Benedictine, and next year's freshman class will not see a tuition increase through spring 2011. (Source: Naperville Sun)
.....

Boston University
(Boston, Mass.) - Affordability initiative

Boston University will scale back a 35-year-old merit scholarship program for Boston public high school graduates and devote larger sums to city graduates who need it most. (Source: Boston Globe)
.....

Brown University
(Providence, R.I.) - Other: New payment policy

Brown University is allowing students to register for classes regardless of debts they may owe the university. The decision breaks from Brown's past policy of blocking registration for students with outstanding balances of $1,000 or more. (Source: Inside Higher Ed)
.....

California Lutheran University
(Thousand Oaks, CA) - Affordability initiative

CLU is expanding its program that provides a private college education at a public university price to include transfer students in the 2009-10 year. Launched in 2008-09, the CLU Guarantee Scholarship allows incoming students who are also admitted to either University of California, Los Angeles, or University of California, Santa Barbara, to attend CLU for the cost of attending the public university.
.....

Capitol College
(Laurel, Md.) - Campus cost cutting

Capitol College has delayed construction projects such as renovating the school's physics lab and installing new signage and lab equipment until next year. It has also ceased professional development funding for faculty and staff, and two part-time administrative positions will be cut. Current students will not have their scholarships revoked. (Source: Prince Georges County Gazette)
.....

College of Mount St. Joseph
(Cincinnati, Ohio) - Campus cost cutting

To curb costs, the college has implemented hiring restrictions. (Source: Cincinnati Business Journal)
.....

Cornell University
(Ithaca, NY) - Student aid initiative

For 2009-10, Cornell University is expanding the ambitious financial aid program it launched in 2008-09. Last year, the university announced it was eliminating the loan expectation for those with family incomes below $60,000; now, it is also eliminating the parental contribution as well for those families. In addition, Cornell will reduce the parental contribution for selected students who have financial need and whose families have annual incomes above $60,000, and begin capping need-based student loans at $7,500 annually for students who have financial need and whose families have annual incomes above $120,000. Already, Cornell annually caps need-based student loans at $3,000 for family incomes between $60,000 and $120,000. (Source: Cornell Chronicle)
.....

Cornell University
(Ithaca, N.Y.) - Campus cost cutting

Cornell will suspend hiring of non-faculty staff from outside the university through March 31, 2009. Construction won't begin for any new projects on Cornell's Ithaca and New York City campuses for at least 90 days. (Source: Bloomberg News)
.....

Emory University
(Atlanta, Ga.) - Campus cost cutting

Emory anticipates that most administrative budgets will not grow for FY 2010. Emory suggests that departments cut spending through several means, including
teleconferencing or videoconferencing instead of air travel; cutting back on the number and scale of social events; and paying close attention to the volume of flyers, paper announcements, and other mailings. (Source: Campus letter)
.....

Flagler College
(St. Augustine, Fla.) - Campus cost cutting

Flagler College has not taken any of its regular quarterly withdrawals -- about 5 percent of the value for the past four years -- from its endowment for the past six financial quarters. That way, unrealized losses don't turn into actual losses by selling stocks at a low price. The college expects increases in enrollment to offset the loss. (Source: Jacksonville Times-Union)
.....

George Washington University
(Washington, D.C.) - Other: Expanding student recruitment

Admissions officers are stepping up recruitment efforts across the country in response to the global financial crisis, emphasizing GW's financial aid and fixed tuition programs.
(Source: GW Hatchet)
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Lawrence Technological University (Southfield, MI) - Affordability initiative

Lawrence Tech has announced 400 newly created "Recovery Grants" that will provide 50 percent of tuition for eligible displaced workers or their dependent children.
.....

Lincoln Memorial University (Harrogate, TN) - Affordability initiative

LMU is freezing tuition and room for 2009-10 at their current 2008-09 rates.
.....

Loras College
(Dubuque, Iowa) - Affordability initiative, Helping families plan ahead

To give students and families extra time to plan financially, Loras announced its 2009-2010 tuition increase early (early November). Despite the nation's economic turmoil, the 3.5 percent increase will be the college's lowest in six years.

.....

Luther College
(Decorah, Iowa) - Campus cost cutting

Luther is halting most residence hall renovation projects until the economic forecast improves. (Source: Luther College Chips)
.....

Manchester College (North Manchester, IN) - Affordability initiative

Beginning in 2009-10, Manchester will offer the Triple Guarantee: (1) grant aid will cover the full cost of tuition for academically strong low-income students who live in Indiana, and guaranteed financial aid for all full-time students; (2) guaranteed graduation within four years for all full-time students, or pay no tuition for credits needed to graduate in five years; and (3) a guaranteed job or enrollment in graduate school within six months of graduation, or return for a full year tuition-free.
.....

Merrimack College (North Andover, MA) - Affordability initiative

For 2009-10, Merrimack is freezing tuition, room, and board at its current 2008-09 level for all students. (Source: Merrimack College press release)
.....

Middlebury College
(Middlebury, Vt.) - Campus cost cutting

Middlebury College is tightening its belt and searching out ways to cut operating costs. So far, plans call for a slowdown on construction and renovation projects.
(Source: Addison County Independent)
.....

New York University
(New York, N.Y.) - Other: Fund raising for student aid

New York University has kicked-off a five-year, $400 million capital campaign to raise money to help students who qualify for financial aid packages. Donations will go into a special endowment. Income from these endowments is expected to generate an estimated $20 million a year.
(Source: Crain's New York Business)
.....

Rice University (Houston, TX) - Affordability initiative

For the 2009-2010 freshman class, Rice's no-loan policy will be extended to students who qualify for need-based aid from families whose annual incomes are $80,000 or less - up from the current threshold of $60,000. The university will also lower the cap on loans in financial-aid packages for need-eligible incoming freshmen to $10,000 for their four undergraduate years - down from the limit of up to $14,500 for freshmen who entered in fall 2008.
.....

St. John's University (New York, NY) - Affordability initiative

St. John's announced an alumni assistance program in December 2008. The plan includes a 50-percent tuition discount on graduate programs for alumni who were laid off in the economic downturn of the past six months and who enroll in the spring or summer of 2009.
.....

Shenandoah University
(Winchester, Va.) - Campus cost cutting

Instead of awarding across-the-board raises based on a percentage of each employee's pay, officials have opted to add $1,000 to every employee's base pay. That means some of the university's prized faculty and highest-paid administrators will see relatively small salary increases next month, while assistants and other lower-paid staff will get more help than usual during a period of national economic turmoil. (Source: Inside Higher Ed)
.....

Trinity College
(Hartford, Conn.) - Campus cost cutting

Trinity has made an across-the-board cut of five percent of all non-compensation discretionary budgets, placed a freeze on hiring, reduced business travel, limited the use of outside consultants and contractors, and halted most campus projects. (Source: Trinity Tripod)
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University of Evansville (Evansville, IN) - Affordability initiative

Evansville has announced a 3.5 percent increase in tuition and for the 2009-10 academic year - its lowest percentage increase in 12 years.
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Williams College
(Williamstown, Mass.) - Campus cost cutting

Williams is putting off $100 million worth of new construction projects, cutting $3 million in maintenance efforts and slowing down filling vacancies. (Source: Berkshire Eagle)
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Xavier University
(Cincinnati, Ohio)
- Campus cost cutting

Xavier is restricting new hires. (Source: Cincinnati Business Journal)  
.....

Vanderbilt University
(Nashville, Tenn.) - Affordability initiative

Vanderbilt University has unveiled plans to expand its financial-aid program, announcing it would replace loans with grants for all eligible students beginning in 2009-10. (Source: Chronicle of Higher Education)
.....

Yale University
(New Haven, Conn.) - Campus cost cutting

Some of the $2.6 billion planned for capital projects in the next four years may be delayed. University President Richard Levin said in a recent letter to the faculty: "Understandably, managers should forgo any unnecessary spending through the balance of this fiscal year and will exercise caution in submitting budget proposals for next year." (Source: Yale Daily News)