Tuesday, April 15, 2008

A Reasonable Tuition Increase?

With gasoline prices increasing by 33% in the last 12 months, it appears that a 5% annual tuition increase is equitable. What is not factored in is that private college tuition prices have increased 375% in the last 25 years, while housing is up 124% and medical care is up 223%.

What is driving these astronomical college price increases?

Viewers who watched Davidson College's men's basketball team perform so well in the recent NCAA basketball tournament might be surprised to learn that students at the North Carolina college get free laundry service. Drop off a bag of dirty clothes, and two days later you can pick up shirts and pants, pressed and on hangers, with the rest folded and tucked into a brown paper bundle.

Just as there is no "free lunch," there is really no "free laundry service." Incoming freshmen at Davidson will pay $42,950 in the fall of 2008, and as seniors they will pay approximately $55,000 per year!

Average salaries for college administrators rose by 4% in 2007-2008, beating inflation for the 11th straight year. I'd like to wonder why that is, but then I look at the huge increases in college tuition, and I see.

Last year, Princeton froze tuition (at $44,000 per year). However, they also saw fit to increase room and board by 18%. Obviously the increase in gasoline prices was anticipated by the economic department.

Thursday, April 3, 2008

Financial aid - or financial pain?

Recently I have had the opportunity to review many “financial aid” packages from colleges across the country. I am continually amazed at the way representatives of institutions of higher learning can mis-represent and color the facts of financial aid to families.

Let me be VERY clear----loans are NOT financial aid! They represent long term pain, at best, and financial bondage at worst!!

Some quotes from college representatives are:

“When you are thinking about where to attend college, cost should not be your main consideration.”

“I don’t think college cost should be a factor to where students apply for admission.”

And how about this one... “Students should not look at a school because it is affordable. The student's ‘college experience’ is what really matters.”

We are growing a college debt-laden generation that is being led to the slaughter by colleges who should instead be teaching fiscal conservativeness and prudent management of resources.

It seems that our only hope for college debt is a GOVERNMENT BAIL-OUT!