2008 Woodie Awards
Colleges are changing aid
The Chicago Tribune Editorial Staff / (MCT)
Issue date: 2/4/08 Section: Opinion
Harvard University recently acknowledged what many parents, who get sticker shock every time the tuition bill arrives, already know. Private colleges and even some public universities are so expensive that even the affluent upper middle class are struggling to pay the bills. They're so expensive that Harvard and others have been gradually throttling back on what it expects many parents to pay. Harvard is already picking up the tab for families earning less than $60,000.
Recently Harvard announced that it will significantly expand financial aid to students from families earning as much as $180,000 a year. The deal: Costs will be limited to about ten percent of income, meaning that students from those families would pay a maximum of $18,000. That's a sweet deal and a hefty discount from the full annual cost of more than $45,000.
Now Yale has followed suit, declaring that it would increase the amount of money it spent from its endowment, expanding financial aid to low-and middle-income students and to students from families earning as much as $200,000 a year. Other schools, among them the University of Pennsylvania and Swarthmore, are scrambling to eliminate loans from their aid packages and replace them with grants, which will help middle and upper-middle income families.
Why the sudden generosity? Harvard's dean of admissions told a reporter: "People were voting with their feet. It was pretty clear that we were missing out on some pretty exciting students."
But Yale's president acknowledged what's likely to be the more compelling reason: Congressional pressure. Lawmakers have been threatening to force schools to spend at least five percent of their endowment funds every year, as private foundations are required to do. Last week, the Senate Finance Committee ratcheted up the pressure, demanding detailed information from the nation's wealthiest colleges on tuition hikes, financial aid and how they managed their endowments.
Harvard's got a $35 billion endowment. In fiscal 2006 alone, according to consultant Steven Roy Goodman, the school would have been forced to spend $245 million more to meet that standard.
Recently Harvard announced that it will significantly expand financial aid to students from families earning as much as $180,000 a year. The deal: Costs will be limited to about ten percent of income, meaning that students from those families would pay a maximum of $18,000. That's a sweet deal and a hefty discount from the full annual cost of more than $45,000.
Now Yale has followed suit, declaring that it would increase the amount of money it spent from its endowment, expanding financial aid to low-and middle-income students and to students from families earning as much as $200,000 a year. Other schools, among them the University of Pennsylvania and Swarthmore, are scrambling to eliminate loans from their aid packages and replace them with grants, which will help middle and upper-middle income families.
Why the sudden generosity? Harvard's dean of admissions told a reporter: "People were voting with their feet. It was pretty clear that we were missing out on some pretty exciting students."
But Yale's president acknowledged what's likely to be the more compelling reason: Congressional pressure. Lawmakers have been threatening to force schools to spend at least five percent of their endowment funds every year, as private foundations are required to do. Last week, the Senate Finance Committee ratcheted up the pressure, demanding detailed information from the nation's wealthiest colleges on tuition hikes, financial aid and how they managed their endowments.
Harvard's got a $35 billion endowment. In fiscal 2006 alone, according to consultant Steven Roy Goodman, the school would have been forced to spend $245 million more to meet that standard.
Viewing Comments 1 - 3 of 3
Christopher
posted 2/05/08 @ 4:02 PM EST
The big issue, she said, is "how are we going to make college affordable, accessible and attainable and high quality for the vast majority of Americans?"
In response to that, I would have to say systems already exist in the form of (surprise, surprise) public schools: something the entire tax paying public has seen fit to bankroll for a number of years. (Continued…)
Vegetarian
posted 2/05/08 @ 6:40 PM EST
This is a very good step in the right direction. The most brilliant students will not have to worry about cost.
Ruth West
posted 2/07/08 @ 8:03 AM EST
Add Williams College to the list of colleges that have replaced loans with grants for students.
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