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Statement by NAICU President David L. Warren on the 2007 College Board Tuition and Student Aid Reports

October 22, 2007

EMBARGOED UNTIL                                               CONTACT: Tony Pals, tony@naicu.edu


11 a.m. Eastern, October 22, 2007                    202-739-0474 (office)     202-288-9333 (cell)

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Highlights

• 6.3 Percent Increase in Tuition and Fees at Private Colleges Matches Last Year's Rise
• Grant Aid Provided by Private Institutions Grows by 7.8 Percent Over Previous Year
• Average Net Tuition 40 Percent Lower than Published Price -- $14,400 vs. $23,712
• Cost Drivers Include Energy, Health Care and Other Insurance, Growing Family Need
• Five-Year Increase at Private Colleges Lowest Since 1982

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The College Board reports not only underscore the challenges that families face in affording higher education, but point to the efforts of private colleges and universities to remain affordable and accessible. 

This year's average increase in private-college tuition and fees matches last year's rate of 6.3 percent.  Grant aid provided by private college and universities to undergraduates was an estimated $13.8 billion in 2006-07, an increase of 7.8 percent from the previous year. 

Because of our commitment to providing a quality education at the lowest possible out-of-pocket cost, this year's average net tuition (published price minus grants and tax benefits) for a student at a private college is 40 percent below the average published tuition -- $14,400 vs. $23,712.  Our investment in grant aid has been substantial.  Students at private colleges today receive nearly five times as much aid from their institutions as from the federal government.  In 1985, that ratio was one to one.

This year's average tuition increase reflects significant increases in the cost of energy, library acquisitions, health care and other insurance premiums, and growing family financial need.  While Congress has increased student aid funding in recent years, much more needs to be done to make up for several years of stagnant funding, growing family need, and the swelling tidal wave of low-income and first-generation college students who are academically prepared for college.  

In recent years, private colleges and universities have taken innovative steps to control costs and to keep tuition increases as low as possible, while ensuring that students have access to small classes; top-notch instructors; and up-to-date learning facilities, information technology, and lab equipment.  Examples can be found at www.naicu.edu/affordabilityinitiatives.

As a result of our cost cutting initiatives, the 14-percent inflation-adjusted increase in published tuition and fees at four-year private institutions in the last five-year period is the lowest since 1982. 

Private college and university presidents understand the financial pressures facing students and their parents.  Working in partnership with federal and state governments, philanthropic organizations, and families themselves, we will continue to make access and affordability for students from all backgrounds priority one.

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