When colleges discuss tuition pricing there can be a
disingenuous "this is going to hurt me more than it will you"
undertone to the dialogue. Disingenuous because colleges have been rolling up
price with abandon, and been rewarded for it.
But now the unrelenting pattern of price increases, the current economic
straightjacket, and some pundits identifying a link between increases in
government assistance and further price spikes are combining to turn the
tide. Colleges do face the very real
possibility of feeling the hurt more than families.
Mt Holyoke College is perhaps the most high-profile
college to realize that, as tough as it will be to leave money on the table
now, it might be even tougher not to: by deciding to hold next year's tuition
at this year's level, Mt Holyoke signals it "gets it" and positions
itself in a potentially stronger position in the long-term... which is the way
leadership is supposed to think. Last
year Sewanee reduced tuition by 10% and the Sage Colleges have held tuition
constant for the past three years, both colleges have been rewarded for their
stance, with enrollment up 24% at Sage.
Yes, the wealthy are willing to pay more, but... other information shows that the
least affluent are willing to pay close to what the common financial aid
formulas suggest. That same analysis
showed, staggeringly, that with each tick up the affluence scale, the ability
to pay quickly and far outpaced the willingness to pay: if the poorest would
offer 88% of their expected family contribution, the wealthiest would offer 24%
of their fair share. It seems questions
about the value of an expensive college education are pitted against lifestyle
concerns here-and-now and in retirement.
The Mt Holyoke story is newsworthy because of the oddly
contrarian nature of the decision. When
an institution with a $600 million endowment and a robust applicant pool takes
the long view and decides hitting the $75,000-a-year mark on annual attendance
isn't a net positive, we know the days of the "Chivas Regal Syndrome"
– when price was a proxy for quality – are over and, according to parents and
pundits: good riddance.
Four years ago a dad from California wrote "Colleges
have to learn to operate more efficiently. Maybe the answer is a 'no frills'
education: forget palatial grounds and touchy-feely 'campus life'; just
bare-bones classrooms, virtual libraries, and dedicated instructors (not
researchers)."
In January a group
of private college presidents met at Marco Island, Florida. The topic of the sustainability of the status
quo came up repeatedly. In the Q&A
of one session a president offered this view as to why the wake-up call hasn't
been heeded: most colleges "haven't gotten to the point of
desperation" that would encourage a different approach. Many parents have gotten to that point and
they may be applauding Sage, Sewanee, and Holyoke.
We are reminded that there's always more room to
maneuver, to be thoughtful, and enjoy a broader range of options earlier rather
than later. Why wait to get to the point
of desperation?
The value of a college degree has never been more
important nor has the value of an educated citizenry. That is why the issue of college access and
affordability is so hot. All
stakeholders have a role to play, and leaders on the provider side need to make
some difficult and forward-thinking decisions as responsible stewards of an
important national resource.
