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Tuition Runs Out Today

Today marks the passage of two-thirds of the academic year at Pennsylvania’s Albright College.

Why is that significant? Because today, Albright administrators say, student tuition dollars, which cover 66 percent of the annual cost of a student’s undergraduate education, run out (symbolically, that is) — and other revenue sources kick in.

Albright’s first annual “Tuition Ran Out Day” is designed to strengthen student awareness of the fact that donors are subsidizing their education and to drive home to students the point that private college administrators so often make when they’re criticized for escalating tuition prices : that the cost of tuition, even as it rises, still doesn’t come close to reflecting the true cost of education, borne by so many others. “We want to focus on the importance of giving ... so that when students leave here they understand the importance of philanthropy and giving back to their own alma mater,” said Karen M. Fitzgerald, executive director of alumni programs and services at the Pennsylvania liberal arts college.

To focus student attention on the cost of running the college, Albright is displaying 80 giant price tags around the Reading, Pa., campus today, including six big enough to cover the side of a building, said Michelle Hahn, director of the Fund for Albright. Among the dollar values to be posted on the bright blue and yellow tags: $222,128 for water and sewer for a year, $275 for a desk with chair, $529.99 for a Ping-Pong table, $875 for a projection screen, $3,194.95 for the pool lane lines, $17.25 million in scholarships awarded this year, and $1,239.93 for a security phone.

Faculty will also wear buttons commemorating the day, and are being asked to contribute to the educational effort with the help of a guide to Frequently Asked Questions provided by the college. Among them: “How do I respond when someone says ‘tuition is too expensive?’ ” (The official answer: “Tuition actually covers just 66 percent of the real cost to attend Albright. It is important to educate the entire campus community on the true costs of operating Albright. On Tuition Ran Out Day, blue helium balloons mark the areas where price tags of various campus items are displayed. Some of the items are more costly than one might think.”)

Fitzgerald and Hahn stressed that the day is not meant in any way to belittle the amount students are contributing — the comprehensive tuition fee is set at $26,620 for full-time undergraduates this academic year at Albright, where the rate of tuition increases has stayed steady at around 5 percent for the past few years. The point, rather, is to educate students about the importance of giving and the economics of the college, which Hahn said many students mistakenly believe is “actually making money.”

“Our hope and goal is to foster communication and a connection between students and faculty, and [to emphasize] how important donations are to keep the cost of tuition down,” said Fitzgerald. “Just to keep it at what it is now is challenging. If we don’t have the support of revenue sources and donors, tuition is just going to keep going up.”

The college’s average alumni giving rate is, according to Albright data, 23.1 percent. Philanthropy covers 8 percent of the college’s costs, with 26 percent coming from other revenue sources, including interest on endowment. The balance, of course, is covered by tuition.

“It’s a gimmicky thing, but anything that promotes transparency is a positive development,” said Richard Vedder, director of the Center for College Affordability & Productivity, in Washington, and a member of the Secretary of Education’s Commission on the Future of Higher Education, which had harsh words for rising tuition prices in its final report. “It could do no harm and it could very well be a very good thing to let students know what’s going on, but I wish colleges would go a couple steps further — all colleges — to give full financial information and vary their prices based on student use of services a little more than they do.”

Vedder said while college leaders typically brag about their bargain rates by citing operational costs that exceed tuition revenue by a third to a half, Albright’s approach goes a step further than any other he’s heard of. “The idea’s kind of a neat one, in some ways.”

Elizabeth Redden

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Comments

Fantastic

If only all colleges and universities did this. There is probably no single message that could and should be delivered to students, their families and politicians than this one.

DC Observer, at 7:51 am EST on February 20, 2007

Interesting ... But Not Impressive

Here’s another perspective on Albright’s “gimmicky thing.”

I can assure you every Berea College student is cognizant of society’s contribution to his/her schooling.

http://www.berea.edu/prospectivestudents/tuitioncosts/default.asp

I wonder ... will Albright faculty, dressed in their finest professional regalia, circulate amongst the parents and friends of graduating seniors this spring, holding out little tin cups into the shamed may noisily deposit George Washington dollars? That would be a symbolic act every student, parent, and especially faculty member could appreciate.

I just love gimmicks

RWH, at 9:06 am EST on February 20, 2007

Interesting idea. How much did it cost the university for signage and promotional materials? Where did that money come from?

Hopefully the Albright students will take notice of the high cost of education and ask their faculty and administration whether the (for example) $275 desk-and-chair was bought at the best price, or if the students are being gouged by a corrupt bidding process, backroom deals, or other mismanagement of their money.

And hopefully, more universities will enact similar days, and more students will raise similar questions.

A Graduate Student, at 10:36 am EST on February 20, 2007

Brilliant!

MB, at 10:36 am EST on February 20, 2007

Administrator salaries

I find this strategy to be extremely offensive. To counter this strategy, maybe students at Albright College should walk around the campus wearing signs that state what their average monthly student debt bill will be when they graduate. Or, students could walk around with signs that say “Why is our college president being paid $250K annually while the College encourages us to borrow more than we can afford?”

Mr. Common Sense, at 12:00 pm EST on February 20, 2007

Huh?

Hey RWH — wha??? Wipe the froth off and clarify, please... So Berea is overflowing with money, fantastic. I am sure they also have need-blind admissions to keep the faculty happy. Heaven forbid the faculty should teach students who didn’t go through a college prep private school.

As to Mr. Common Sense, it seems to me that the debt load of students could indicate more than an avaricious college. It might also indicate that Albright students and their families are poor, and committed to using education to try to remedy that situation — and we certainly do not want them to join the “meritocracy,” would we?

Liberal Arts Instructor, at 12:50 pm EST on February 20, 2007

Unmanageable debt

Liberal arts prof,

Maybe you haven’t heard, but the PIRG has shown that about half of college grads have “unmanageable” amounts of student loan debt. Ironically, too much debt can PREVENT students from achieving their dreams. And make no mistake, colleges encourage unmanageable amountsof debt because student loan money goes straight into colleges’ pocketbooks. That’s the problem here, that Albright (and all other colleges) is crying poverty while their administrators get rich and the students suffer.

Mr. Common Sense, at 3:05 pm EST on February 20, 2007

Berea

Berea is not need blind. Quite the contrary. They actually have a maximum family income level—no rich people need apply(see http://www.berea.edu/prospectivestudents/admissioninfo/requirements.asp)

Rob Rittenhouse, at 3:05 pm EST on February 20, 2007

Oops, Sorry About That

I used the Berea comparison because I imagined any academic who “knew anything” knew about Berea.

Given his comments, it’s obvious that Liberal Arts Instructor knows little about either Albright or Berea.

RWH, at 5:50 pm EST on February 20, 2007

Missing the Point?

Interesting commentary.

Does anyone seriously imagine that tuition *would* fully cover costs if colleges would forgo a few banners, buy inferior-quality chairs at a rock-bottom price, and expect their executive leadership to work at or below median income?

Yes, the debt load of graduates is a very serious problem, but does it follow that it is somehow inappropriate to communicate to the campus community the importance of other sources of funding, let alone indicate appreciation of those whose generosity helps support financial aid, facilities, and programs?

I think that the dynamics are more complex than some of the commentators imply. State-of-the-art research facilities, impressive health and wellness centers, and residence halls and dining facilities that would be almost unrecognizable to college students 50 years ago likely contribute to the price escalation at least as much the salaries of the college president, but I don’t see any comments encouraging students to question those choices. And the college that isn’t competitive in those areas will feel the impact.

These are tough problems, and broadsides against greedy administrators and colleges and vague suggestions of mismanagement and corrupt bidding processes hardly seem like serious contributions to the discussion.

Broken Note, at 5:51 pm EST on February 20, 2007

Oh, Come On Broken Note ...

For starters, this discussion is about the best and brightest at Albright College, not a bunch of intellectually challenged “students” at Bonehead U.

You ask, “Does anyone seriously imagine that tuition would fully cover costs if colleges would forgo a few banners, buy inferior-quality chairs at a rock-bottom price, and expect their executive leadership to work at or below median income?”

Of course not. And that’s why making a big deal out of conveying such a simple and obvious fact strikes some of us as being much ado about nothing. And by the way, I can assure you that at least half of the “executive leadership [of colleges in the U.S.] work at or below the median income.”

I can also promise you that you’re completely off the mark in suggesting that “dynamics are more complex than some of the commentators imply.” We all know the “dynamics” are exceedingly complex and no one suggested otherwise.

And in reading the comments above you may have seen “... broadsides against greedy administrators and colleges and vague suggestions of mismanagement” but I apparently missed those broadsides completely. Where are they?

Albright’s leaders admit the “Tuition Runs Out” day is a gimmick. And what’s the point? Answer: To spend waaaay more time and energy than is necessary to say, “okay boys and girls ... not that you and your family are footing your entire tuition bill to begin with, but if you were, well it’s still not enough to pay for what you’re getting here at dear old AC. If “someone else” were not willing to chip in — if there were not some wonderfully altruistic folks out there who apparently think it is worthwhile to invest in the education of young people – then we’d have to manage our finances some other way. And oh, by the way, we want you to be one of those altruistic individuals yourself ... and preferably before you make your last payment on the loans you assumed to pay for tuition, room, board, fees, and other expenses.

And by the way, Broken Note – and I’m extrapolating from what I know about colleges and universities other than Albright – if you look at that growth at Albright that has outpaced all other growth since, say, 1950 it is in personnel for “management” and logistics ... i.e., that which has the least impact on education.

RWH, at 3:55 am EST on February 21, 2007

Getting Back on Point

Some observers are overlooking a key purpose of the Albright exercise. It is not about the cost of a college education, but as clearly stated, “to focus on the importance of giving ... so that when students leave here they understand the importance of philanthropy and giving back to their own alma mater.” Philanthorpy is not an inherent trait, but rather charitable giving is learned from parents, teachers, professors, etc. This is especially true in today’s “me” society requiring instant self-gratification. There are few Bill Gates in the world but all can give some. Pointing out this need to young adults and encouraging them to give a little now and more when they are more successful is beneficial to every college and to society in general. It is a learning experience that should be taught on every college campus. Students need to understand this point when they are 20 and not when they are 70.

Father of Four College Grads, at 5:51 pm EST on February 21, 2007

Father, I’m sorry to say that the colleges have succeeded in brainwashing you. Shame on wealthy colleges for encouraging their students to donate money to them. Instead, colleges should encourage students to donate to real charities. Students and alumni give enough money to colleges: it’s called taxes and tax discounts. Colleges are the beneficiaries of many tax gifts, including the unbelieveable opportunity to not pay any taxes on their income — yes this is true for private colleges as well. It’s time to stop playing into colleges’ hands.

Mr. Common Sense, at 12:51 pm EST on February 22, 2007

That Mr. Common Sense makes a lot of sense.

Maineroad, at 5:10 pm EST on February 22, 2007

Maineroad, your endorsement check is in the mail. Just kidding. But thanks for the support. My book will be out soon, and then the reckoning will begin...

Mr. Common Sense, at 8:25 pm EST on February 22, 2007

Mr. Common Sense

If there really is a book and if it is about either the cost or the costs of higher education, I would appreciate getting information about it at rhoyer@comcast.net.

Thanks.

T.O. Box, at 1:26 pm EST on February 23, 2007

Yes, there really is a book about college costs/scams, and I will let you know when it’s ready. Hopefully Inside Higher Ed will have some coverage of it. Help is on the way!!

Mr. Un-Common Sense (New Name), at 4:55 pm EST on February 23, 2007

Mr. Uncommon Sense

Funny, but I almost used that name.

If you’re up to it, contact me anyway.

O.T. Box, at 9:51 pm EST on February 23, 2007

Negativity

I constantly reinforce that fact that it is more meaningful to receive $10 from each of our alumni, than $50,000 from one. Giving back to your Alma Mater illustrates to the world that you stand behind their mission, increases the value of your degree as perceived by the community, and gives Alumni the chance to fund initiatives they see as missing from the campus. Alumni can designate their gifts anywhere they would like. My alma mater runs 3 community centers-I designate my gift to further advance these programs because I believe they are, in fact, a “worthy charity". Those alumni that state “I paid enough for my eduication” are taking the cheap way out, and frankly, I’m sick of hearing it. There are hundreds of programs on campus. Get behind one of them with your time and OR money whether its the environment, education, animal rights, civil rights, funding a new building, or contributing to a scholarship. NO EXCUSES!

No Excuses, at 10:45 am EST on February 27, 2007

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