National Recession Hits College Families

Author: Samuel Wilson

The current economic recession in the United States is making it harder to fund a college education for many students and families. Middlebury College has seen an increase in financial aid requests, but the administration is still firmly committed to a need-blind admissions policy.
Tuition costs nationwide have risen at twice the inflation rate since the early 1990s. Despite the ballooning tuition, college enrollment in the last decade has increased as well. Sixty-three percent of high school graduates are now pursuing a higher education, a 3 percent increase over the last ten years.
Throughout most of the late 1990s the economy was strong enough to support most people seeking higher education through aid, scholarships and loans, but with the economy taking a downturn, paying for college is becoming more difficult.
The economic downturn can often cut a household's income, simply making all expenses, tuition included, more difficult to fulfill. This means that more people seek financial aid from schools, which in turn puts a strain on a college's budget. A budget strain can lead schools to increase tuition, spiraling the problem ever further. In the last decade need-based financial aid was the single largest expenditure for private institutions across the country.
Public universities are hit especially hard by an economic recession. When states bring in less money than expected from tax revenue, they often cut money for public universities.
"We had a 10 percent tuition increase. The reason is because of the state budget cuts due to the economic downturn," Mark Rosati of the University of Illinois, Chicago said to Foxnews.com.
"Twenty to 30 years ago you had at least about 50 percent of operating funding come from the state, and now we're at about a third. So the difference is made up in tuition revenue," Steve McLaughlin, dean of students at the University of Wisconsin, Parkside, also told Foxnews.com.
At Middlebury College the recession has been felt, but not as acutely as at most public universities. "We did see an increase in the need of our currently enrolled students that appears to be directly related to the current economy," said Robert Donaghey, director of financial aid at Middlebury College.
The College has reacted by increasing the aid budget beyond what was expected to meet the greater need. "We needed to add to the grant budget to cover the increased need of our currently enrolled students
"I believe the majority of our families have done everything they could to anticipate the cost of college but could not anticipate what has happened to the economy in the past year
"I am pleased that the College was willing to step in to help families to make it possible for the students to continue to study at Middlebury," said Donaghey.
Fortunately, the increased aid does not seem to be affecting much of the College's finances or policies. Middlebury operates under a need-blind admissions process and has every intention of keeping that policy in order. During the admissions process the admissions staff is not informed as to which applicants have applied for aid. Thus, need is not a factor in the decision to either except or deny an applicant. Only after decisions have been made does the aid staff meet the determined need of accepted students. According to Donaghey, "There is a very strong commitment to [need- blind admissions] throughout the College, up to and including the Trustees."
President John McCardell echoed this statement and added that for Middlebury to abandon need blind admissions "economic conditions would have to be calamitous. The College places the highest priority on this policy."