College Tuition…

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Well, I am about to divulge some dirty little secrets about college education.  In particular, how the relatively affluent and the downright rich have always received hidden benefits.

The first thing we have to assume (just for the sake of this argument- it doesn’t change the facts of the case) is that schools accept students based upon their abilities.  That the selection is need-blind, race-blind, and religion-blind.

Until recently, most state schools accepted the majority of their students from residents of their own state.  After all, the state residents were the ones funding the schools via their taxes.   But, only until recently.  Without going into politics (yes, it’s always politics), many states (when there was a change in the legislature) decided that fully funding their state institutions was less important.  As a means to either cut taxes- or keep the rates the same, even as costs and needs for citizen’s needs escalated.

So, these state schools had no alternative but to raise tuition- and also choose more out-of-state students.  Because, as you already know, tuition and fees paid by out-of-state students greatly outweigh those paid by in-state students.

For example, the in-state tuition (not including books, fees, room, board) at the University of Michigan is $ 13,977, while those students not from Michigan provide $ 41,811 to the treasurer.  Those same figures for the California University System are $ 12,804 and $ 36,828, respectively, and for the University of Virginia (as of this student year) are respectively $ 10,016 and $ 36,720.

As you can see, it is easier to balance the school budget as one increases the number (or percentage) of out-of-state students.  But, that doesn’t tell the whole story. Because colleges and universities also provide financial aid to those students whose families can’t afford the various applicable rates.   And, therein lies the dirty secret to which I alluded before.

Pipi comes from a family whose income is $ 400,000 a year, while Reginald’s family ekes out $ 48,000 a year.  So, when Pipi attends the University of Virginia, her parents have no problem covering tuition, while Reginald’s family will have to take out a loan- probably even if UVA gives him a $ 5000 break.  (There are fees, too, you remember.  And, let’s not forget about room and board.)

So, in essence Pipi’s family gets a great deal when Pipi elects to go to UVa.  Which is about to change.  But, not by much.

The UVa Board of Regents just decided to raise the tuition starting the next academic year.  In-state student tuition will rise $ 1000 above and beyond the natural growth in tuition each year.  In 2016, it will be $ 2000 higher.

For Pipi’s family, it will be an inconvenience, but not a hardship. And, the Board of Regents understands that the tuition Pipi and her family will pay is only a portion of the costs required for that single year of attendance at UVa.

But, that extra tuition will now be used to help fund loans and grants provided to kids like Reginald.  So, they won’t be saddled with $ 50,000 or more in debt by the time they graduate from UVa.

Some of the schools in Alexandria (a city in the Commonwealth of Virginia) have similar policies.  The school my son attended as a child had a plethora of after-school enrichment opportunities.  And, we were requested to pay for these activities- at a rate higher than their costs.  So that my son’s peers could also partake of these activities at reduced rates- or even for free, if their family income would not be able to cover the costs.

Now, don’t be surprised that folks in the Commonwealth from a certain party (the same one, not surprising either, that doesn’t want to raise taxes to better fund their state universities) feel this is a redistribution of wealth.  Of course, the fact that UVa had more than 40% of its costs covered by the state coffers 30 years ago (augmented by out-of-state tuition and donations) to less than 14% now means nothing, right?

And, UVa promises to meet the needs of ALL of its students- and that its admissions policy is need-blind.  So, this new policy is the best way they see to keep those covenants.  And, the new policy is to insure that low-income families and students won’t need to borrow more than $ 4,000 to graduate from UVa.  (Starting in 2004, that promise was based upon $ 14K.  Before 2004, the neediest students at UVa were never required to borrow a dime.)  The cut-off for familial income for this promise to be in play is that same $ 48K that obtained for our hypothetical Reginald’s adjusted gross family income.

Just so you know, this still is not that big an issue for UVa, since only 13% or so of its students qualify for Pell Grants.  At California schools that number is closer to 32%.  (And, Congress is about to decimate the Pell Grant program, to boot.  Making it even harder for those poorer students to get a state education.)

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3 thoughts on “College Tuition…”

  1. What? The gov’t is going to do away with Pell Grants? That is outrageous. So is expecting families with less than $48,000 annual income to come up with tuition beyond their ability to pay.

    I thought education was the only way out of poverty. What if a family is too impoverished to pay for the education?
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