Letters to the Editor
Los Angeles Times

To the Editor:

Re: “Colleges Have Little Incentive to Hold Down Costs,” July 18

Private colleges and universities must be market-smart and mission-driven to survive and succeed. They have a major incentive to hold down operating costs, keep net tuition (sticker prices minus grant aid) in check, and maintain their value to consumers. A marketplace made up of 3,700 colleges and universities competes for students who place the value received for their tuition dollars above all else. While president of Ohio Wesleyan University from 1984 to 1993, I saw consumer focus shift away from quality to value, as annual double-digit inflation increases became common at private and public institutions. College presidents around the nation will agree that this attitude still prevails.

Those double-digit tuition increases are rare today, as private institutions control costs by adopting business practices. These include targeted reductions that streamline operations, outsourcing of campus services, collaborations with other institutions that leverage purchasing power and reduce administrative and academic redundancy, and the implementation of environmentally friendly systems that reduce energy consumption.

These measures, combined with a 197 percent increase in the amount of institutionally provided grant aid over the past decade, have had remarkable results. Student aid has grown more than twice as fast as tuition increases over the last decade. Moreover, out-of-pocket costs paid by students have actually dropped by an inflation-adjusted $100, according to the U.S. Department of Education.

The fierce competition among private colleges and universities, and with public and for-profit institutions, has demanded flexibility and ingenuity on the part of presidents. They have taken steps such as tuition reductions, freezes, and guarantees; tuition bartering; four-year graduation and employment guarantees; a national private college 529 savings plan; accelerated degree programs; policies that replace loans with grants for low-income and working families; and substantial increases in student aid budgets.

Combined with Pell Grants, Federal Work-Study, and other vital federal student aid programs, state grants, and private support, these institutional initiatives have given millions of students the opportunity to choose the college that best serves their needs. The commitment of these partners will give the coming wave of first-generation, needy students a chance at a better life. Far from driving up the cost of college, increases in federal student aid help temper tuition increases at private institutions.

With more families than ever worried about college costs, America’s private colleges and universities are committed to safeguarding their value by maintaining access, affordability, and quality for students from all backgrounds.

Sincerely,

David L. Warren
President
National Association of Independent Colleges and Universities Washington, DC