Financial Aid Makes College Accessible ...

 Monday, May 5, 2008 01:49 PM

Peyton R. Helm
President, Muhlenberg College
Published by The Morning Call
May 5, 2008

Ask almost anyone how much college costs these days and the answer is likely to be ''too much.'' Read politicians' denunciations of tuition increases and they inevitably blame colleges for wasting money on ''frills'' such as climbing walls and ''state-of-the-art dorms.'' The real issue, though, is not price but value. And the real solution is not cutting costs but increasing financial aid.

Let's start by throwing the preposterous notion that tuition increases are driven by ''frills'' onto the trash heap. A climbing wall, for the record, costs approximately $100,000. My campus doesn't have one, but if we did, and if it had a useful life of 10 years, that would cost each student about $5 a year, less than the cost of a pizza. I'm not sure what a state-of-the-art dorm is, exactly, but if it means hot tubs and spas, we don't have those, either. If it means high-speed Internet connections in every room, I think most people realize that's no longer a luxury.

What's really driving tuition increases are personnel, energy, technology, regulatory costs and financial aid -- especially financial aid (more on that below). Colleges like Muhlenberg strive to enrich the quality of the student experience. That means smaller classes and more faculty. It means better technology and better facilities. Parents frequently ask me why we don't have this or that amenity. They never ask me to cut costs by increasing class size, eliminating services, or reducing the amount of personal attention we give their sons and daughters. This is the marketplace at work.

There are increased costs for campus security, of course, and we are also educating many more students with physical challenges and learning differences these days, as well as more students with emotional difficulties. Every college is investing more heavily in counseling services, disability services, and academic support services. We are equipping young men and women (who might have been written off by earlier generations) to maximize their talents and live self-sufficient and productive lives. Is it expensive? You bet. Is it worth it? Absolutely.

And of course, there is the ballooning cost of government regulation. A Stanford University study estimated that 7 cents of every tuition dollar covers the costs of reporting and compliance. Versions of the Higher Education Act under consideration in Congress would increase such reporting obligations. Some Congressional leaders seem oblivious to the absurdity of calling for cost controls while increasing regulatory costs.

Earlier, I said that the real problem is not college cost, but the inadequacy of financial aid. I believe that access to higher education is the most important issue of our time. The promise of our democracy, it seems to me, is that if you have talent and are willing to work, you will have opportunity. In the 21st century, opportunity means education. If we say to young men and women, ''I'm sorry, you have talent and energy, but you have no money, so the doors of college are closed to you,'' then we will have broken that fundamental promise and we will squander the talents that Providence has bestowed on many of our fellow citizens.

Colleges like Muhlenberg are working hard to keep this promise. Over the past 20 years our tuition and fees have risen, it is true, by approximately 200 percent. But the amount of grant aid we provide to students has increased by over 1,000 percent, and the recipients include students from middle class as well as poor families. Financial aid has become the second largest item in our budget, after faculty and staff compensation. During the same period, federal Pell grants -- available only to the neediest students, not the middle class -- have increased by only 92 percent.

Muhlenberg, like many private colleges and universities, could cut student tuition and fees across the board by 30 percent or more -- if we were willing to eliminate all financial aid. But imagine a United States where only the very wealthy could aspire to college. Imagine the intellectual poverty of campuses where every student comes from wealth. Imagine our country a generation from now, more divided, angry, and economically polarized than ever.

Muhlenberg College rejects such a future. Instead, we have pledged ourselves to increasing financial aid for the best and brightest. Last month, we launched a campaign with this promise at its core. We announced a major bequest of over $7 million from an alumnus who shared our conviction. Every penny of the income from that endowment will provide financial aid.

I challenge our nation's leaders to step up to the plate with us. Let's increase federal investment in grant aid for students. Let's extend Pell grants to the middle class, and let's expand tax deductions for families who pay tuition. Let's continue our commitment to quality and recommit ourselves to access. Let's keep our country's promise and make our nation strong.