Inspire, Fall/Winter 2011

FAQs About College Affordability 1. Why does higher education cost so much? In their book, Why Does College Cost So Much? , Robert Archibald and David Feldman observed that higher education is a personal service provided by highly educated professionals. As the demand for their expertise increases, so do their salaries. Similar to other institutions, any wage or benefit increases must be covered by growth in giving, tuition, enrollment, or all three. But, other factors contribute to the rise in college costs. A high-quality school must stay current with technological innovations, specialized equipment, information resources, and student support services. While these enrich the educational experience, they also translate into higher costs for the university and the student. Student expectations have also increased. For example, attractive residence halls, ample dining options, and fitness facilities are now standard at most colleges and universities. But all of these enhancements cost money. Some would argue that academic bureaucracy is to blame, or that increasing government aid has contributed to the rise in college costs (i.e., as long as students are willing to borrow more, colleges can charge more). But, in many ways, the reasons are less important than the problem itself. Costs have risen to the point where, for many students, a college education seems out of reach. Cedarville is not immune from these discussions. We have been wrestling with the cost issue and addressing it at multiple levels, including increasing the University’s investment in financial aid and making some very difficult decisions to restructure our budget so that cost increases could be dramatically reduced. Tuition increases have been under three and four percent since 2010 (see chart 1), while financial aid increased by nearly 50 percent in the same time period. Cedarville’s tuition remains below the national average for similar private colleges, and our room and board is thousands less than most other schools. For Cedarville, costs are not just about competitive position or affordability. Costs impact mission. We are equipping undergraduate and graduate students to make a difference in the world for Jesus Christ. That mission may be “priceless,” but the price tag is very real. F or many families , a college education is a central part of the “American Dream.” Whether it’s the hope of a first-generation student or the satisfaction of parents who can save for their child’s education, a college degree has for years been considered a golden ticket — to a good job, financial security, a civil society, and a better life. Today’s traditional students have grandparents who remember working summer jobs to pay for college. As costs rose, their parents borrowed modest student loans to cover the increase. Today, the cost of a year of college now consumes nearly one-third of a family’s average household budget. There is no summer job that pays the income today’s students would need to pay their own way. Students (and their parents) have begun asking whether the high cost is worth it. Inspire asked three University administrators to field a few of the frequently asked questions posed by prospective students, parents, and alumni about the value of higher education and how Cedarville’s costs compare. Chart 1 Percentage of Annual Cost Increases 2002–03 2003–04 2004–05 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 6.56 6.67 5.45 5.17 5.78 5.47 5.07 5.27 2.87 3.63 CEDARVILLE UNIVERSITY 11