The College Fix

In an economy characterized by climbing prices of almost everything – from clothes to gasoline to movie tickets – how do we pay for one of the largest investments in life we will ever make: college?

The cost of a college education has risen several fold over the past couple decades and with the current economic crisis, budgets are tighter than ever. Miami University, for example, currently costs $22,464 for in-state students per year, excluding textbooks and other miscellaneous personal expenses. The university appears to be trying to ensure the quality of its education does not diminish in the face of budget cuts, such as Ohio Governor John Kasich’s recently-proposed 14.5 percent ($9.7 million) cut to Miami, but the cost of a Miami diploma remains high nonetheless. Some universities are exploring alternative strategies.

Enter Sewanee: The University of the South. Located in Sewanee, Tennessee, this small private university gained national attention recently when it announced a bold plan – to cut tuition by 10 percent.

“The economic climate has changed in recent years, and higher education’s approach to how families pay for their children’s educations must change with it,” said Laurie Saxton, Director of Media Relations at Sewanee via e-mail. “The days of high fees and high discount rates are coming to an end.”

According to Saxton, the university, by charging lower fees, will receive less money but might be compensated with a larger applicant pool and more donations.

“We have already received some support from foundations and increased alumni pledges because of the tuition cut,” Saxton said.

Saxton said although it is too early to know precisely what impact this decision will have, the numbers are undoubtedly up. According to Saxton, the campus received 23 percent more interested visitors than it had at this time last year.

A counterpoint to Sewanee’s plan is that it will not truly have a meaningful impact.

According to Matthew Denhart, the administrative director and a research associate at the Center of College Affordability and Productivity in Washington, D.C., there are other factors to consider as well.

“What is important when talking about affordability is ‘net tuition’ rather than ‘sticker price,'” Denhart said. “Sewanee has announced a reduction in sticker price. If financial aid packages are likewise reduced then college does not really become more affordable for students.”

In other words, financial aid could be one of the assets reduced with Sewanee’s cuts.

Denhart noted that a lower “sticker price” does not necessarily mean students will be more likely to pay out-of-pocket to attend Sewanee, which he viewed as a good development.

According to Denhart, the Sewanee case is interesting because it goes against what he views is the national trend for universities to charge more and more as their budgets keep getting cut and public universities in Ohio are no exception to this.

“Colleges do not often reduce their tuition charges,” Denhart said. “This is why Sewanee’s decision made national headlines. In what other industries does one firm having a ‘sale’ make The New York Times?”

Rob Evans, press secretary on the Ohio Board of Regents, a board responsible for overseeing higher education in Ohio, echoed Denhart in the rarity of what Sewanee wants to do and doubted that it would spread to Ohio.

“Generally it’s pretty rare for your costs to go down by 10 percent, whether you’re an institution or a company or an individual,” Evans said. “I think in Ohio what’s going to happen is we’ll see how the budget changes as it moves through the difference pieces (of getting state legislation).”

According to Evans, Governor Kasich wants to put a stop to soaring tuition prices, capping at a 3.5 percent increase for fiscal year 2011-2012.

David Creamer, vice president of financial and business services and treasurer at Miami, doubts the university will see anything like Sewanee’s plan anytime soon.

“(One) needs to understand the tradeoffs with these decisions,” Creamer said via e-mail. “Would this lead to larger classes and fewer opportunities for student participation? If enrollments don’t (end up increasing), what does the university eliminate? How will this affect the quality of the student experience?”

The last point was one emphasized by Creamer. According to him, the value of a Miami education must never be compromised amid budget cuts. Creamer suggested universities should run more efficiently, which would lead to lower costs, rather than purely cutting and then trying to preserve the educational quality from there.

There are other strategies to reduce costs. The College of the Ozarks, or Hard Work U, located in Point Lookout, Missouri, has a unique approach to making its education affordable: its students work for the university rather than pay tuition.

Students work 15 hours a week for the school, doing everything from meal-service to maintenance to cow-milking, making the cost of running the school much lower than most colleges nationwide, and more importantly, making students graduate without any debt. Seven other universities in the nation practice a similar according to public relations assistant and senior student Veronica Barrientos. Enrollment and applications have increased significantly since the economy has plummeted.

“I know they had to turn a lot (of potential students) down over the past couple years,” Barrientos said. “I’ve always said that this is one of America’s best kept secrets. There’s a large waiting list to get in.”

Like Sewanee, College of the Ozarks proves that everyone has a breaking point to the cost of education. How Miami chooses to negotiate its own costs with its established standard of quality against budget cuts amid an economic crisis is an ongoing evolution.

Matt Levy is a senior staff writer for the Miami Student. He is a contributor to the Student Free Press Association.

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