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College Affordability & Cost

Moody's Sees Stiff Challenges for Colleges—Especially Private Ones—in Next Year Chronicle of Higher Education January 6, 2009 A new annual-outlook report from Moody's Investors Service says that higher-education institutions are facing a range of challenges in the next year and a half. Although all colleges will face hardship, private colleges will be especially stressed compared with public colleges and community colleges.

Colleges Offer Extra Aid to Strapped Students Chronicle of Higher Education January 5, 2009 Colleges are creating more student-aid programs or expanding existing ones. Others are offering students additional counseling or a grace period for paying their tuition bills. And even some that haven't seen an increase in student need are preparing for one next year.

As rich rivals cut back, small colleges sell stability Boston Globe January 5, 2009 Lesser-known schools, which do not have the luxury of dipping into multibillion-dollar reserves, are scrambling to market themselves as affordable and sound investments. Their survival, after all, is directly tied to the number of students - and tuition dollars - they bring in.

Wise Investment: Governor hits mark with proposed student loan program Post-Standard, Syracuse, N.Y. - Opinion Piece January 5, 2009 Thirty-eight states currently provide their college students with some form of affordable student loan program. New York is the only state in the Northeast without this low-cost capital alternative for families. Implementation will help encourage New Yorkers to stay in New York and give them the choice to attend any college or university in the state.  (Regional emphasis)

A helping hand for college students The Oregonian, Portland - Editorial January 5, 2009 Oregon lawmakers can do their part by funding student financial aid near the level recommended by the governor.  As for Congress, the most direct way to help students is through federal grants and loans. Congress can make a world of difference by further improving funding for Pell Grants to meet the rapidly growing need. Congress also can work with President-elect Barack Obama to make sure the Treasury helps keep credit flowing for low-interest student loans.  (Regional emphasis)

Don't Cancel College MSN Encarta - Column January 5, 2009 The rampaging bear market is doing a real number on many families' college financing plans. But there are ways to tame the beast.  College admissions experts stress that it's worth being persistent rather than pessimistic. This is one investment that's still safe, they say, promising better returns for a teenager than his mom's last 401(k) statement.

Sen. Pell opened the doors to college for many Oakland, Calif., Tribune - Column January 4, 2009 When I was in college and my funds were short, I used my Pell grant to pay for food and books.  Unfortunately, with the costs of a four-year-college education continuing to soar, the grants now cover far less than they did when the program first started, or for that matter in the '80s when I was in school. Today the maximum grant covers 65 percent at a public university and 17 percent at a private institution.

Tuition blame game needs to stop Indianapolis Star - Opinion Piece January 4, 2009 How can colleges, families and government agencies work together to make college more affordable? Colleges must and will continue to be strategically frugal.  Families also can find ways to save.  The federal government can redesign the system for students to qualify for aid by eliminating the FAFSA form or linking it to families' IRS documents, and can use its economic clout to make sure that families have access to student loans.

Budgets tight at private colleges Charlotte News & Observer December 29, 2008 Private universities are bracing for tough times.  Some are freezing hiring, delaying construction, cutting course offerings and trimming some part-time faculty.  Their biggest fear is that come spring, prospective students frightened by the economic situation will take their money to cheaper public universities and community colleges or stay away from college altogether.  And students who do choose private colleges are likely to need more financial aid.  (Regional emphasis)

Don't be deceived, college aid is available Indianapolis Star - Opinion Piece December 29, 2008 The greatest danger of the report "Measuring Up 2008: The National Report Card on Higher Education" is that it might discourage many Hoosiers from considering a full range of college options, or any higher education, out of fears of affordability, despite the fact that aid is available.  Indiana's 21st Century Scholarship Program assures low-income students a full tuition scholarship. Students can attend either public or independent institutions in Indiana.  (Regional emphasis)

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Saving for College

More Families Move to Lock In Tuition Rates Wall Street Journal December 9, 2008 Directors of prepaid plans, which are offered by more than a dozen states, say they're seeing renewed interest as families anticipate sharp tuition increases. Washington state, which offers only a prepaid plan, has seen a 50% increase in rollovers from state residents who had 529 savings accounts based in other states. Pennsylvania has seen a 43% increase in new account enrollment and a 19% jump in contributions from May through September over year-earlier levels in its prepaid plan.

Tiny Salem, Ohio, has big college scholarship program Cleveland Plain Dealer November 30, 2008 Cities across the country are scrambling to find ways to help students pay for a college education.  Meanwhile, the people of Salem, Ohio, have done it their own way for the past 100 years.  That's how long the Salem High School Alumni Association has given college scholarships to graduating seniors.  A lot of scholarships.  Last May, 52 Salem High seniors -- about a third of the graduates -- split more than $230,000 in grants from their predecessors.

Parents face college-vs.-retirement money quandary Associated Press November 26, 2008 Common sense and mathematics make it a straightforward call in the eyes of many financial planners: Even if college looms soon for your child, retirement savings has to be the top priority.  As a wise maxim goes, you can take out a loan for college but you can't take out a loan for your retirement.  But cold financial logic doesn't always prevail when decisions involving children's goals are involved.

Student debt grows; financial aid application rates rise Capital News Service November 23, 2008 In total dollars, student loans were up 17 percent over last year. Maryland saw Free Applications for Federal Student Aid increase by 26,247 compared with last year. Nationally, almost 1.3 million more FASFA's were submitted, according to the Information for Financial Aid Professionals Library, a government organization.And one-third of parents are slowing college savings because of declining home values and rising unemployment, leaving students with less money.  (Regional emphasis)

Students May Seek More Loans as Savings Dwindle Bloomberg News November 10, 2008 For the class of 2007, the average debt for a graduating undergraduate student was $20,098, a 6 percent increase over 2006, according to the Project for Student Debt. "Their other sources of money have dried up," said Robert Shireman, executive director of the Berkeley, California-based group.  "At worse they have lost their job and a lot of others will see their savings account diminished."

Sour economy squeezes college savings Sioux Falls, S.D., Argus Leader November 9, 2008 Parents hoping to send their children to college next fall have historic stock market losses to consider this year in addition to the usual task of helping them choose the right school.  It's ironic, says Augustana College's head of enrollment, that families best prepared with long-term funds are the ones seeing the greatest losses now, while families without much of a plan have avoided the losses.

Paying for college possible if we save Reading, Pa., Eagle - Editorial November 4, 2008 We disagree that so much of the expense of a college education must be covered by loans. One old-fashioned approach that has received short shrift in recent years needs to be emphasized:  saving money.  Parents should think of saving for a child's college or other post-secondary education as money to ensure many sunny days. It should be a top financial priority for parents from the moment the child is born.

Economic downturn forces students to rethink college Miami Herald October 27, 2008 Of the many mean consequences of the current economic meltdown, one is that fondly nurtured college dreams for thousands of smart, ambitious kids are yielding to harsh economic realities. With job security wobbling, incomes squeezed, and savings portfolios -- for those lucky enough to have them -- dwindling, the hard question of how to pay for college has become more nerve-wracking than ever. Across South Florida, parents, guidance counselors and university administrators say, many families and college-bound kids are recalibrating their aspirations.

Students, schools adjust for struggling economy USA Today October 27, 2008 Eliana Goolcharan, a senior at Oyster Bay High School on Long Island, had hoped to attend an out-of-state college, perhaps the University of Texas-Austin ($34,000 yearly for out-of-staters) or maybe a private school such as Providence College ($40,000). That now seems unlikely — especially since her mother works for AIG, the insurance giant bailed out last month by the Federal Reserve. So Goolcharan has expanded her list of colleges to include Queens College ($4,300 for tuition and fees), a commuter school in the City University of New York system, and she'll visit the University at Buffalo ($16,000, including room and board), a state school. Given the economy, "It's scary now," she says. "I think they might be a better option." Goolcharan is one of thousands of high school seniors navigating a college admissions process that was stressful and complicated even before credit froze, stocks crashed and families' finances were upended.

Seeking Higher Education at Lower Prices New York Times October 26, 2008 As with any campus tour, you get a lot of numbers at SUNY Binghamton, the top-rated school in the State University of New York system. There’s the average grade-point average for incoming students (93 or 3.5), the number of applications last year (26,500), the acceptance rate (39 percent), where the metropolitan area ranks in safety among the nation’s midsize cities (11), and where Kiplinger’s Personal Finance ranked the university nationally in terms of value (1). But for the slightly shellshocked parents taking the tour on Friday, peering nervously at the daily disaster on the television screens where the tag on CNN read "Financial Crisis and You," chances are the number that made the biggest impression was this one: 16,452. Add a dollar sign, and it’s the annual tuition, fees, room and board.

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College Financial Health/Management

Moody's Sees Stiff Challenges for Colleges—Especially Private Ones—in Next Year Chronicle of Higher Education January 6, 2009 A new annual-outlook report from Moody's Investors Service says that higher-education institutions are facing a range of challenges in the next year and a half. Although all colleges will face hardship, private colleges will be especially stressed compared with public colleges and community colleges.

Colleges Protect Workers and Cut Elsewhere Chronicle of Higher Education January 5, 2009 Most colleges have steered through the first jolts of the recession without resorting to layoffs, cutting employee benefits, or imposing across-the-board freezes on hiring. But the economic pain is afflicting campuses in many other ways, according to the findings from a new survey of chief business officers conducted last month by The Chronicle and Moody's Investors Service.

As rich rivals cut back, small colleges sell stability Boston Globe January 5, 2009 Lesser-known schools, which do not have the luxury of dipping into multibillion-dollar reserves, are scrambling to market themselves as affordable and sound investments. Their survival, after all, is directly tied to the number of students - and tuition dollars - they bring in.

At Meeting of Small Private Colleges, Presidents Don't Worry Too Much About Economy Chronicle of Higher Education News Blog January 5, 2009 The No. 1 topic of discussion at the annual gathering here of presidents on the Council of Independent Colleges is, of course, the economy.  At a session led by Kent John Chabotar, president of Guilford College, in North Carolina, dozens of presidents shared stories about how the recession had had an effect on their campuses.

Economy dominated higher ed news in 2008 USA Today December 31, 2008 The economy overshadowed just about everything else this year in the world of higher education, and no sector was spared.  Beloit College, a private liberal arts school in Wisconsin, said it must cut 40 jobs by the end of this academic year.  California State University plans to limit enrollments on its 23 campuses next year.  A number of community colleges face budget cuts, at a time when their relatively low tuitions attract more enrollments.

Going on a Diet Inside Higher Ed - Opinion Piece December 30, 2008 For American colleges and universities, the deepening recession means that costs will be rising (because of increased enrollments as unemployed persons return to school to stay gainfully occupied) while revenues will be falling, as state appropriations, private donations, and endowment income shrinks.  In such an environment, higher education institutions and their faculty may start to do some unpalatable things previously off the table. Let me list 10 possibilities.

Budgets tight at private colleges Charlotte News & Observer December 29, 2008 Private universities are bracing for tough times.  Some are freezing hiring, delaying construction, cutting course offerings and trimming some part-time faculty.  Their biggest fear is that come spring, prospective students frightened by the economic situation will take their money to cheaper public universities and community colleges or stay away from college altogether.  And students who do choose private colleges are likely to need more financial aid.  (Regional emphasis)

Higher-ed not immune from economic downturn Boston Globe - Column December 28, 2008 Like homeowners who borrowed beyond their means and are now struggling with escalating mortgage payments, many colleges are confronting rising debt payments as higher interest rates kick in on variable-rate loans that once looked so enticing.  A new report from Moody's released last week found that colleges and universities have increasingly turned to riskier volatile loans to finance projects.

Pinched colleges squeezing their alumni Los Angeles Times December 25, 2008 Walking a narrow ledge between reassurance and realism, college presidents and chancellors have struggled to assess the effect of a slow-motion slump that has no clear beginning or end. More than one president has sent out a relatively rosy assessment, only to follow up with news of cutbacks, hiring freezes and canceled projects.

Higher education must be part of stimulus package Springfield, Ill., State Journal-Register December 23, 2008 The economic downturn is crushing college students across the country. Even parents who still have jobs are watching their homes and investments plunge in value - exactly the assets they planned on tapping to pay tuition.  When Congress crafts an economic-stimulus program next year, higher education should be a top priority, and there is no shortage of ideas.

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Economic Impact

NAICU Survey Examines the Economic Concerns of Private College and University Leaders NAICU Press Release December 18, 2008 A new survey of private college and university presidents finds that fund raising, endowments, the availability of student aid, institutional debt, and student enrollment lead the list of campus economic concerns as the fall 2008 semester comes to an end.  The survey was conducted from Nov. 18 to Dec. 12 by the National Association of Independent Colleges and Universities (NAICU).

Cuts to higher education will undermine state economy Lower Hudson Journal, West Harrrison, N.Y. - Opinion Piece December 16, 2008 New York state got to be one of the nation's intellectual capitals to a large extent because over the years we invested strongly in higher education, both private and public.  New York's higher education powerhouse is a bargain for taxpayers, largely because private campuses produce about 56 percent of our baccalaureate degrees and 74 percent of our graduate degrees.

For a 'bright future,' keep higher-ed strong Tallahassee, Fla., Democrat - Opinion Piece December 7, 2008 Our governor and the Legislature can do much to build brighter possibilities for Florida in higher education by improving both funding for student grant programs and by working with our public institutions to create the required strong foundations of funding.  Yes, the sector I represent, the not-for-profit colleges and universities, are private universities in the public service; but we fully recognize the need for higher education in Florida to be healthy across all levels. This current economic climate has created challenges for all of us to succeed. (Regional emphasis)

Colleges Shift Donor Appeals Toward Student Aid Wall Street Journal November 20, 2008 The economic downturn is causing schools to refocus their fund-raising campaigns more on financial aid, scholarships or a school's general fund, which is typically used for a university's most pressing needs and often directed toward student aid.

At Annual Meeting, Financial Officers Find Plenty to Talk About Chronicle of Higher Education October 29, 2008 It is almost impossible to escape talk of the economic crisis. College financial officers discovered that this week as they tried to flee here for a meeting but found that the economy was the No. 1 topic of conversation over cocktails, in elevators, and in between conference sessions.

Colleges see steep decline in endowments Philadelphia Inquirer October 27, 2008 Colleges around the country have seen double-digit drops in their endowments as the economy continues to spiral - and could see losses climb more than 30 percent by next year, financial analysts say. Endowment losses locally already are steep: Swarthmore College's $1.4 billion fund slipped about 15 percent from June to mid-October, to under $1.2 billion. Rutgers' $548 million endowment is down 20 percent, to $443 million as of Oct. 17. At Widener, the loss stands at 19 percent, with its endowment at $67.1 million as of Oct. 14. Other colleges, such as the University of Pennsylvania, Princeton, Villanova and Lafayette, while they declined to give specific numbers for the last six months, acknowledged losses.

As Endowment Returns Fall, Colleges Lower Expectations Chronicle of Higher Education September 26, 2008 After years of double-digit gains, college endowments are feeling the pinch from distressed financial markets. Some colleges are reporting negative rates of return for the fiscal year that just ended, and even those that performed better are wondering what the financial crisis will mean. If the market's slide continues, or the credit crunch worsens, some institutions may put off certain projects until conditions improve.

Foreclosures, Budget Impasse Hinders Education Inglewood Today September 26, 2008 The current credit and liquidity crisis in the United States and in world financial markets due to the mortgage meltdown has caused student loan resources to virtually dry up. Along with the massive number of home foreclosures, students are finding it increasingly more difficult to pay for college.

A matter of degrees Baltimore Sun - Opinion Piece September 24, 2008 The United States, accustomed to leading the world in higher education, is now facing a shortage of college graduates.  By the end of the next president's first term, there will be 3 million more jobs requiring a bachelor's degree and not enough college graduates to fill them; 90 percent of the fastest-growing jobs, 60 percent of all new jobs and 40 percent of manufacturing jobs will require some form of postsecondary education.

Higher ed boosts Wake County (N.C.) economy WRAL-TV, Raleigh, N.C. September 15, 2008 The five colleges and universities in Raleigh account for a quarter of all wage and salary income and a fifth of total employment in Wake County, according to a study released Monday.  Meredith College, North Carolina State University, Peace College, St. Augustine’s College and Shaw University contributed an estimated $5.5 billion to the Wake County economy last year, the study reported.  (Regional emphasis)