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Low vs. High Discussion
"Low tuition/low aid" versus "high tuition/high aid." Which pricing model best serves the colleges and universities of the 21st century?
Once upon a time, a high tuition / high aid model was accepted as the best way for private institutions to function and to realize their educational goals. Institutions such as Harvard, for example, would demand high tuitions of students whose parents could afford to pay the full costs for attending the school. The high price tag of attendance would subsidize the scholarships for poor students, or students from historically disadvantaged groups. Middle-class students would receive a combination of loans and scholarships, the former of which they could presumably pay for with the high salaries their educations would surely command upon graduation.
This model is growing increasingly problematic. Firstly, the availability of credit and student loans has contracted, making it more difficult for middle-class students to secure additional outside aid. Also, these students are often frustrated that they must work hard at work study jobs, often compromising the quality of their education, while the children of wealthier parents do not have to balance the demands of their classes with work. The availability of a good job that will pay off tens of thousands of student loan debt is not guaranteed, and many students find themselves in their twenties with enormous debt loads and relatively low-paying jobs -- or no job at all.
More and more people will begin to ask if a private education is worth the cost. Unless high-quality private institutions are to become populated only with the ranks of the very wealthy, as they were before the integration of higher educational institutions in the 60s and 70s, the model of funding must shift to a lower cost model, which acknowledges the realities of a constrained credit and job market. As institutional endowments begin to decline, which also limits scholarship funding for students of diverse backgrounds, cost-cutting is essential. This may necessitate some cuts in amenities like extracurricular activities, high-priced sports centers, and fancy dormitories. Still, continued access to a high-quality education for all deserving and qualified students, the maintenance of a diverse student body, and a class of students graduating with lower levels of debt is well worth such sacrifices.
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