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Private College Enrollment Projected to Hold Steady for Fall 2009

Private College Enrollment Projected to Hold Steady for Fall 2009

July 20, 2009

Multiple Campus Steps Taken to Maintain Affordability for Students

Tony Pals, tony@naicu.edu
office: 202-739-0474 cell: 202-288-9333

Click here to view detailed results.

WASHINGTON, DC, July 20 -- A survey of nearly 300 private, nonprofit colleges and universities finds that undergraduate enrollment for fall 2009 is projected to increase slightly-by an average of 0.2 percent-over fall 2008. Overall student enrollment (undergraduate and graduate students) at these institutions is projected to increase by 0.1 percent over fall 2008.

Increased funding for Pell Grants and other federal student aid programs was widely credited for helping to maintain student educational choice, while more generous institutional student aid policies; lower-than-usual tuition increases; salary and hiring freezes; and more flexible admissions practices were commonly cited campus responses to the economic downturn.

"The nation's students and families are facing unprecedented financial challenges, and many are struggling to afford college without taking on excessive debt," said David L. Warren, president of the National Association of Independent Colleges and Universities. "Private college presidents are aware of the difficulties facing consumers, and are doing what they can within their institutional means to enhance affordability.

"Recent increases in federal student aid have made a huge difference for our students," Warren said. "We thank Congress, the Obama administration, and the American people for helping students during these challenging times. There still are difficult days ahead for many students, and their institutions of higher education, but the federal government's actions this past year have given consumers a reason for hope."

Survey Highlights

  • Undergraduate enrollment at private, nonprofit colleges and universities for fall 2009 is projected to increase slightly-by an average of 0.2 percent-over fall 2008.*

  • Nearly 57 percent of responding institutions reported an increase or no change in paid deposits, by May 15, for fall enrollment compared to last year.*

  • Majorities projected an increase or no change in new undergraduate students (67.9 percent), returning undergraduate students (74.3 percent), and transfer undergraduate students (76.5 percent) for the fall term compared to last year.*

  • A majority of respondents accepted a higher number of regular applicants versus last year. More than one-third accepted late applications or extended the recruiting cycle.

  • More than 90 percent of responding institutions said Pell Grant and Stafford Loan increases had a positive impact on their students. Two-thirds reported that Federal Work-Study increases were helpful or very helpful.

  • More than half of responding institutions reported they increased tuition for 2009-10 at less than their historical average. Nearly 30 percent said they increased tuition at lower-than-expected rates. Five percent froze tuition at the previous year's rate.

  • Eight in 10 responding institutions reported an increase in fall 2009 student aid applications versus fall 2008.

  • A majority of institutions reported they responded more positively to more student aid appeals, and increased the size of institutional aid awards. More than three-quarters of respondents reported they increased institutional aid awards over last year. Only five percent reported smaller institutional awards.

  • Three-quarters of responding institutions reported an increase in federal grants in aid packages, and nearly half reported a decrease in expected family contribution levels.

  • Slightly more than half of respondents reported in increase in federal student loans in aid packages, and nearly a third reported an increase in private loans.

  • Nearly 40 percent of responding institutions report that due to the recession, they had students stop out of school in the 2008-09 academic year or for the fall 2009 term. One-fourth of responding institutions reported they had students switch to part-time status. Slightly more than half reported they had students who are working more hours or borrowing more through private sources.

  • About half of the responding institutions that increased institutional aid to students for fall 2009 reported they generated funds through increased tuition revenue and cuts in other institutional budget areas. Other means for boosting institutional student aid funds included increasing fund raising/gift revenue and drawing down more funds from endowments.

  • Approximately half of the responding institutions reported they froze salaries and new hiring. About 40 percent reported they restricted staff travel and slowed down current construction and renovation projects. Approximately one-third delayed maintenance and gave smaller-than-usual salary increases.

* Projected and actual fall 2009 enrollment figures may differ more than in previous years, given the unusually unpredictable admissions season.

Detailed Summary of Findings:
Click here for a detailed summary of findings, as well as the full survey report (including qualitative campus responses).

NAICU serves as the unified national voice of independent higher education. With more than 1,000 member institutions and associations, NAICU reflects the diversity of private, nonprofit higher education in the United States. NAICU members enroll 90 percent of all students attending private institutions. They include traditional liberal arts colleges, major research universities, church- and faith-related institutions, historically black colleges, Hispanic-serving institutions, single-sex colleges, art institutions, two-year colleges, and schools of law, medicine, engineering, business, and other professions.

###

Multiple Campus Steps Taken to Maintain Affordability for Students

Tony Pals, tony@naicu.edu
office: 202-739-0474 cell: 202-288-9333

Click here to view detailed results.

WASHINGTON, DC, July 20 -- A survey of nearly 300 private, nonprofit colleges and universities finds that undergraduate enrollment for fall 2009 is projected to increase slightly-by an average of 0.2 percent-over fall 2008. Overall student enrollment (undergraduate and graduate students) at these institutions is projected to increase by 0.1 percent over fall 2008.

Increased funding for Pell Grants and other federal student aid programs was widely credited for helping to maintain student educational choice, while more generous institutional student aid policies; lower-than-usual tuition increases; salary and hiring freezes; and more flexible admissions practices were commonly cited campus responses to the economic downturn.

"The nation's students and families are facing unprecedented financial challenges, and many are struggling to afford college without taking on excessive debt," said David L. Warren, president of the National Association of Independent Colleges and Universities. "Private college presidents are aware of the difficulties facing consumers, and are doing what they can within their institutional means to enhance affordability.

"Recent increases in federal student aid have made a huge difference for our students," Warren said. "We thank Congress, the Obama administration, and the American people for helping students during these challenging times. There still are difficult days ahead for many students, and their institutions of higher education, but the federal government's actions this past year have given consumers a reason for hope."

Survey Highlights

  • Undergraduate enrollment at private, nonprofit colleges and universities for fall 2009 is projected to increase slightly-by an average of 0.2 percent-over fall 2008.*

  • Nearly 57 percent of responding institutions reported an increase or no change in paid deposits, by May 15, for fall enrollment compared to last year.*

  • Majorities projected an increase or no change in new undergraduate students (67.9 percent), returning undergraduate students (74.3 percent), and transfer undergraduate students (76.5 percent) for the fall term compared to last year.*

  • A majority of respondents accepted a higher number of regular applicants versus last year. More than one-third accepted late applications or extended the recruiting cycle.

  • More than 90 percent of responding institutions said Pell Grant and Stafford Loan increases had a positive impact on their students. Two-thirds reported that Federal Work-Study increases were helpful or very helpful.

  • More than half of responding institutions reported they increased tuition for 2009-10 at less than their historical average. Nearly 30 percent said they increased tuition at lower-than-expected rates. Five percent froze tuition at the previous year's rate.

  • Eight in 10 responding institutions reported an increase in fall 2009 student aid applications versus fall 2008.

  • A majority of institutions reported they responded more positively to more student aid appeals, and increased the size of institutional aid awards. More than three-quarters of respondents reported they increased institutional aid awards over last year. Only five percent reported smaller institutional awards.

  • Three-quarters of responding institutions reported an increase in federal grants in aid packages, and nearly half reported a decrease in expected family contribution levels.

  • Slightly more than half of respondents reported in increase in federal student loans in aid packages, and nearly a third reported an increase in private loans.

  • Nearly 40 percent of responding institutions report that due to the recession, they had students stop out of school in the 2008-09 academic year or for the fall 2009 term. One-fourth of responding institutions reported they had students switch to part-time status. Slightly more than half reported they had students who are working more hours or borrowing more through private sources.

  • About half of the responding institutions that increased institutional aid to students for fall 2009 reported they generated funds through increased tuition revenue and cuts in other institutional budget areas. Other means for boosting institutional student aid funds included increasing fund raising/gift revenue and drawing down more funds from endowments.

  • Approximately half of the responding institutions reported they froze salaries and new hiring. About 40 percent reported they restricted staff travel and slowed down current construction and renovation projects. Approximately one-third delayed maintenance and gave smaller-than-usual salary increases.

* Projected and actual fall 2009 enrollment figures may differ more than in previous years, given the unusually unpredictable admissions season.

Detailed Summary of Findings:
Click here for a detailed summary of findings, as well as the full survey report (including qualitative campus responses).

NAICU serves as the unified national voice of independent higher education. With more than 1,000 member institutions and associations, NAICU reflects the diversity of private, nonprofit higher education in the United States. NAICU members enroll 90 percent of all students attending private institutions. They include traditional liberal arts colleges, major research universities, church- and faith-related institutions, historically black colleges, Hispanic-serving institutions, single-sex colleges, art institutions, two-year colleges, and schools of law, medicine, engineering, business, and other professions.

###

July 20, 2009

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Hundreds of Private Colleges Enlist in the Yellow Ribbon Program

Hundreds of Private Colleges Enlist in the Yellow Ribbon Program

July 01, 2009



FOR IMMEDIATE RELEASE

CONTACT: Tony Pals, tony@naicu.edu
direct office: 202.739.0474     cell: 202.288.9333

Participation Is One, but Not the Only, Indication of a Veteran-Friendly College

Statement by David L. Warren, President,
National Association of Independent Colleges and Universities


A count by NAICU finds that at least 750 private, nonprofit colleges and universities are participating in the new Post-9/11 GI Bill's Yellow Ribbon program. The VA released its final list of participating institutions on June 30.

We are pleased with the high level of interest that our institutions have shown in serving student veterans, through the Yellow Ribbon program and other campus aid resources, especially given the economic pressures of the time and the administrative hurdles associated with implementing a major new federal program.

NAICU was a proud supporter of the legislation that created the Post-9/11 GI Bill. It is a critical investment in the nation's veterans, and a prime example of how by working as partners, the federal government, colleges and universities, and others can pool critical resources to enhance student access and affordability.

My advice to veterans considering college is to not limit your search to those institutions on the Yellow Ribbon list. Private nonprofit colleges and universities may not be participating in the program for reasons that have nothing to do with their commitment to providing assistance to student veterans. Many private institutions have existing student aid programs that provide generous support for all students.

Also, scores of private institutions are located in states where the base Post-9/11 GI Bill tuition benefit is high enough by itself to cover the full tuition at private colleges, making it unnecessary for them to participate in the Yellow Ribbon component. At the other extreme, the base GI Bill benefit for veterans attending private institutions in states such as California (where such veterans will not receive any tuition assistance) will be so low that some colleges and universities simply cannot afford to fill the gap-or choose to do so through existing institutional aid programs.

Students should consider multiple factors when deciding which institution is the best fit for them. These include all forms of student aid available, the college's academic and co-curricular offerings, and its campus environment. The best college value for a student cannot be measured by an institution's list price or simply by its participation in the Yellow Ribbon program alone.

NAICU serves as the unified national voice of independent higher education. With more than 1,000 member institutions and associations, NAICU reflects the diversity of private, nonprofit higher education in the United States. NAICU members enroll 90 percent of all students attending private institutions. They include traditional liberal arts colleges, major research universities, church- and faith-related institutions, historically black colleges, Hispanic-serving institutions, single-sex colleges, art institutions, two-year colleges, and schools of law, medicine, engineering, business, and other professions.



###



FOR IMMEDIATE RELEASE

CONTACT: Tony Pals, tony@naicu.edu
direct office: 202.739.0474     cell: 202.288.9333

Participation Is One, but Not the Only, Indication of a Veteran-Friendly College

Statement by David L. Warren, President,
National Association of Independent Colleges and Universities


A count by NAICU finds that at least 750 private, nonprofit colleges and universities are participating in the new Post-9/11 GI Bill's Yellow Ribbon program. The VA released its final list of participating institutions on June 30.

We are pleased with the high level of interest that our institutions have shown in serving student veterans, through the Yellow Ribbon program and other campus aid resources, especially given the economic pressures of the time and the administrative hurdles associated with implementing a major new federal program.

NAICU was a proud supporter of the legislation that created the Post-9/11 GI Bill. It is a critical investment in the nation's veterans, and a prime example of how by working as partners, the federal government, colleges and universities, and others can pool critical resources to enhance student access and affordability.

My advice to veterans considering college is to not limit your search to those institutions on the Yellow Ribbon list. Private nonprofit colleges and universities may not be participating in the program for reasons that have nothing to do with their commitment to providing assistance to student veterans. Many private institutions have existing student aid programs that provide generous support for all students.

Also, scores of private institutions are located in states where the base Post-9/11 GI Bill tuition benefit is high enough by itself to cover the full tuition at private colleges, making it unnecessary for them to participate in the Yellow Ribbon component. At the other extreme, the base GI Bill benefit for veterans attending private institutions in states such as California (where such veterans will not receive any tuition assistance) will be so low that some colleges and universities simply cannot afford to fill the gap-or choose to do so through existing institutional aid programs.

Students should consider multiple factors when deciding which institution is the best fit for them. These include all forms of student aid available, the college's academic and co-curricular offerings, and its campus environment. The best college value for a student cannot be measured by an institution's list price or simply by its participation in the Yellow Ribbon program alone.

NAICU serves as the unified national voice of independent higher education. With more than 1,000 member institutions and associations, NAICU reflects the diversity of private, nonprofit higher education in the United States. NAICU members enroll 90 percent of all students attending private institutions. They include traditional liberal arts colleges, major research universities, church- and faith-related institutions, historically black colleges, Hispanic-serving institutions, single-sex colleges, art institutions, two-year colleges, and schools of law, medicine, engineering, business, and other professions.



###

July 01, 2009

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Private College Tuition Rises at Lowest Rate in 37 Years

Private College Tuition Rises at Lowest Rate in 37 Years

June 29, 2009

With families facing one of the worst economic crises in the nation's history, private, nonprofit colleges and universities have responded with the smallest average increase in tuition and fees in 37 years, according to the final results of a membership survey conducted by the National Association of Independent Colleges and Universities.

The 4.3 percent increase for 2009-10 is the smallest since 1972-73, when average tuition and fees at private institutions rose by the same rate. The increase is slightly higher than the 2008 Consumer Price Index of 3.8 percent. NAICU's figure is based on responses from 350 private, nonprofit colleges and universities.

The average increase in institutional student aid budgets for 2009-10 at these colleges is 9 percent. (This is the first year that NAICU has collected student aid figures from its member institutions as part of the annual tuition survey.)

Over the past 10 years, the average annual increase in tuition and fees at private colleges has been 6 percent. According to the U.S. Department of Education, the increase in institutionally provided student aid at private, nonprofit colleges has more than tripled the increase in list price, 250 percent versus 72 percent, respectively.

In response to the economic downturn, numerous private, nonprofit institutions have announced innovative affordability measures for 2009-10.

These include:

• Accelerated degree programs
• Public university tuition matches
• Job and four-year graduation guarantees
• Programs that replace loans with grants
• And tuition freezes and cuts, among others.

Campus examples are posted on the NAICU Web site.

"To an unprecedented degree, students and families are concerned about affording the college of their choice," said NAICU President David L. Warren. "Private colleges are committed to maintaining access for students from all backgrounds-especially in tough times.

"Private college and university budgets have been hit by dropping endowments, a reduction in charitable giving, and growing student financial need," Warren said. "Nevertheless, they have made extraordinary efforts to keep students' out-of-pocket costs as low as possible while protecting academic quality.

"Freezes and cuts in other campus budget areas-construction and renovation, salaries and benefits, and travel and other staff expenses, to name a few-have allowed institutions to use those savings to temper tuition increases and keep student aid available," said Warren.

NAICU's annual survey collects percent increases, but not dollar amounts. According to the College Board, the average published tuition and fees at private four-year colleges and universities in 2008-09 were $25,143. The College Board also reports that, on average, full-time students at private institutions received about $10,200 of grants and tax benefits that same year. Because of student aid, nine out of 10 full time, dependent students at four-year private, nonprofit colleges and universities pay less than list price, according to data from the U.S. Department of Education.

With families facing one of the worst economic crises in the nation's history, private, nonprofit colleges and universities have responded with the smallest average increase in tuition and fees in 37 years, according to the final results of a membership survey conducted by the National Association of Independent Colleges and Universities.

The 4.3 percent increase for 2009-10 is the smallest since 1972-73, when average tuition and fees at private institutions rose by the same rate. The increase is slightly higher than the 2008 Consumer Price Index of 3.8 percent. NAICU's figure is based on responses from 350 private, nonprofit colleges and universities.

The average increase in institutional student aid budgets for 2009-10 at these colleges is 9 percent. (This is the first year that NAICU has collected student aid figures from its member institutions as part of the annual tuition survey.)

Over the past 10 years, the average annual increase in tuition and fees at private colleges has been 6 percent. According to the U.S. Department of Education, the increase in institutionally provided student aid at private, nonprofit colleges has more than tripled the increase in list price, 250 percent versus 72 percent, respectively.

In response to the economic downturn, numerous private, nonprofit institutions have announced innovative affordability measures for 2009-10.

These include:

• Accelerated degree programs
• Public university tuition matches
• Job and four-year graduation guarantees
• Programs that replace loans with grants
• And tuition freezes and cuts, among others.

Campus examples are posted on the NAICU Web site.

"To an unprecedented degree, students and families are concerned about affording the college of their choice," said NAICU President David L. Warren. "Private colleges are committed to maintaining access for students from all backgrounds-especially in tough times.

"Private college and university budgets have been hit by dropping endowments, a reduction in charitable giving, and growing student financial need," Warren said. "Nevertheless, they have made extraordinary efforts to keep students' out-of-pocket costs as low as possible while protecting academic quality.

"Freezes and cuts in other campus budget areas-construction and renovation, salaries and benefits, and travel and other staff expenses, to name a few-have allowed institutions to use those savings to temper tuition increases and keep student aid available," said Warren.

NAICU's annual survey collects percent increases, but not dollar amounts. According to the College Board, the average published tuition and fees at private four-year colleges and universities in 2008-09 were $25,143. The College Board also reports that, on average, full-time students at private institutions received about $10,200 of grants and tax benefits that same year. Because of student aid, nine out of 10 full time, dependent students at four-year private, nonprofit colleges and universities pay less than list price, according to data from the U.S. Department of Education.

June 29, 2009

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NAICU President David L. Warren Comments on the Chronicle of Higher Education's Private College and University Compensation Study

NAICU President David L. Warren Comments on the Chronicle of Higher...

February 23, 2009

CONTACT:
Tony Pals, tony@naicu.edu
o: 202-739-0474 c: 202-288-9333

 

The individuals listed in the Chronicle's analysis are among the most talented, highly sought-after professionals in their respective fields. They include those who hold critical leadership positions in complex organizations that have thousands of employees and multi-million dollar budgets. They include highly trained specialists on the cutting edge of research and professional training in health and medicine.

 

The median total compensation package of the Chronicle's complete list of highest compensated private college and university employees is $160,493. In other words, on average, a private college or university provides its top five to 10 employees a median salary and benefits package that's significantly lower than what comparably skilled and experienced individuals would earn in the for-profit sector.

 

The comparisons that have been made between the corporations receiving government bail outs and nonprofit colleges and universities are far stretched. The economic stimulus package provides no direct support to private colleges and universities. The bill provides direct assistance to low- and middle-income students. It increases the Pell Grant by $500, raises the federal tax credit for college expenses by $700, and boosts funding for Federal Work Study by $200 million.

 

Leaders of nonprofit organizations -- and their boards of directors -- are very aware of the concerns regarding executive compensation. They take seriously their responsibility to make a good-faith effort to avoid excessive salary and benefits packages. In the midst of the nation's economic crisis, a growing number of private colleges and universities have announced salary freezes, and in some cases, salary cuts, for their leadership teams. These savings are being transferred to other budget areas to increase student aid and keep student out-of-pocket costs as low as possible, and to safeguard academic quality and faculty jobs.

 

NAICU serves as the unified national voice of independent higher education. Since 1976, the association has represented private colleges and universities on policy issues with the federal government, such as those affecting student aid, taxation, and government regulation. With more than 1,000 member institutions and associations, NAICU reflects the diversity of private, nonprofit higher education in the United States. NAICU members enroll nine out of every 10 students attending private institutions. They include traditional liberal arts colleges, major research universities, comprehensive universities, church- and faith-related institutions, historically black colleges, Hispanic-serving institutions, single-sex colleges, art institutions, two-year colleges, and schools of law, medicine, engineering, business, and other professions.

CONTACT:
Tony Pals, tony@naicu.edu
o: 202-739-0474 c: 202-288-9333

 

The individuals listed in the Chronicle's analysis are among the most talented, highly sought-after professionals in their respective fields. They include those who hold critical leadership positions in complex organizations that have thousands of employees and multi-million dollar budgets. They include highly trained specialists on the cutting edge of research and professional training in health and medicine.

 

The median total compensation package of the Chronicle's complete list of highest compensated private college and university employees is $160,493. In other words, on average, a private college or university provides its top five to 10 employees a median salary and benefits package that's significantly lower than what comparably skilled and experienced individuals would earn in the for-profit sector.

 

The comparisons that have been made between the corporations receiving government bail outs and nonprofit colleges and universities are far stretched. The economic stimulus package provides no direct support to private colleges and universities. The bill provides direct assistance to low- and middle-income students. It increases the Pell Grant by $500, raises the federal tax credit for college expenses by $700, and boosts funding for Federal Work Study by $200 million.

 

Leaders of nonprofit organizations -- and their boards of directors -- are very aware of the concerns regarding executive compensation. They take seriously their responsibility to make a good-faith effort to avoid excessive salary and benefits packages. In the midst of the nation's economic crisis, a growing number of private colleges and universities have announced salary freezes, and in some cases, salary cuts, for their leadership teams. These savings are being transferred to other budget areas to increase student aid and keep student out-of-pocket costs as low as possible, and to safeguard academic quality and faculty jobs.

 

NAICU serves as the unified national voice of independent higher education. Since 1976, the association has represented private colleges and universities on policy issues with the federal government, such as those affecting student aid, taxation, and government regulation. With more than 1,000 member institutions and associations, NAICU reflects the diversity of private, nonprofit higher education in the United States. NAICU members enroll nine out of every 10 students attending private institutions. They include traditional liberal arts colleges, major research universities, comprehensive universities, church- and faith-related institutions, historically black colleges, Hispanic-serving institutions, single-sex colleges, art institutions, two-year colleges, and schools of law, medicine, engineering, business, and other professions.

February 23, 2009

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Statement by NAICU President David L. Warren on the Economic Stimulus Bill and Higher Education

Statement by NAICU President David L. Warren on the Economic Stimul...

February 13, 2009

FOR IMMEDIATE RELEASE

CONTACT: Tony Pals, tony@naicu.edu
office: 202-739-0474 cell: 202-288-9333

The compromise economic stimulus bill is a victory for America's college students and their families. The bill's student aid and higher education tax provisions provide crucial assistance to millions of low- and middle-income families at a critical time.

The bill will go a long way in helping make college more affordable for traditional college-age students, as well as for unemployed workers looking to retrain during a poor job market. This investment will keep students from dropping out of college, allow new students to enroll, prevent the job market from being flooded with under-prepared young workers, and keep displaced workers off unemployment lines.

The positive impact of these provisions will reverberate across campuses and into our communities. It will help colleges prevent more lay offs, open the way for them to hire new workers, and allow them to purchase more goods and services from local businesses.

Among the highlights of the higher education provisions for students and families:

  • Pell Grants: $17 billion is provided in the bill for Pell Grants. This money will serve two purposes: to pay off the program's massive shortfall, and to raise the maximum to $5,350 by July 1, 2009 (for the 2009-10 academic year), and to $5,500 by July 1, 2010 (for 2010-11).
  • College Opportunity Tax Credit: $13 billion is provided for a $2,500 tax credit, with 40 percent refundability. This credit replaces the existing Hope tax credit, while increasing it by $700, from the current $1,800. The refundability for people who do not earn enough money to owe taxes is new, as is the ability to take textbook costs as an education expense that can be counted toward the benefit. The credit would phase out at income levels of $80,000 (single filers) or $160,000 (joint filers).
  • Federal Work-Study: An increase of $200 million in funding.

For millions of individuals, these provisions - along with the efforts of colleges and universities - will be the difference in making higher education possible.

According to a survey conducted by the National Association of Independent Colleges and Universities (NAICU) in December 2008, 92 percent of private, nonprofit colleges and universities plan to increase their student aid budgets for 2009-10. In addition, 83 percent of private colleges and universities intend to keep tuition increases for 2009-10 lower than in the past three years, according to a survey conducted by the Chronicle of Higher Education and Moody's Investors Services in December 2008.

NAICU serves as the unified national voice of independent higher education. Since 1976, the association has represented private colleges and universities on policy issues with the federal government, such as those affecting student aid, taxation, and government regulation. With more than 1,000 member institutions and associations, NAICU reflects the diversity of private, nonprofit higher education in the United States. NAICU members enroll nine out of every 10 students attending private institutions. They include traditional liberal arts colleges, major research universities, comprehensive universities, church- and faith-related institutions, historically black colleges, Hispanic-serving institutions, single-sex colleges, art institutions, two-year colleges, and schools of law, medicine, engineering, business, and other professions.

###

FOR IMMEDIATE RELEASE

CONTACT: Tony Pals, tony@naicu.edu
office: 202-739-0474 cell: 202-288-9333

The compromise economic stimulus bill is a victory for America's college students and their families. The bill's student aid and higher education tax provisions provide crucial assistance to millions of low- and middle-income families at a critical time.

The bill will go a long way in helping make college more affordable for traditional college-age students, as well as for unemployed workers looking to retrain during a poor job market. This investment will keep students from dropping out of college, allow new students to enroll, prevent the job market from being flooded with under-prepared young workers, and keep displaced workers off unemployment lines.

The positive impact of these provisions will reverberate across campuses and into our communities. It will help colleges prevent more lay offs, open the way for them to hire new workers, and allow them to purchase more goods and services from local businesses.

Among the highlights of the higher education provisions for students and families:

  • Pell Grants: $17 billion is provided in the bill for Pell Grants. This money will serve two purposes: to pay off the program's massive shortfall, and to raise the maximum to $5,350 by July 1, 2009 (for the 2009-10 academic year), and to $5,500 by July 1, 2010 (for 2010-11).
  • College Opportunity Tax Credit: $13 billion is provided for a $2,500 tax credit, with 40 percent refundability. This credit replaces the existing Hope tax credit, while increasing it by $700, from the current $1,800. The refundability for people who do not earn enough money to owe taxes is new, as is the ability to take textbook costs as an education expense that can be counted toward the benefit. The credit would phase out at income levels of $80,000 (single filers) or $160,000 (joint filers).
  • Federal Work-Study: An increase of $200 million in funding.

For millions of individuals, these provisions - along with the efforts of colleges and universities - will be the difference in making higher education possible.

According to a survey conducted by the National Association of Independent Colleges and Universities (NAICU) in December 2008, 92 percent of private, nonprofit colleges and universities plan to increase their student aid budgets for 2009-10. In addition, 83 percent of private colleges and universities intend to keep tuition increases for 2009-10 lower than in the past three years, according to a survey conducted by the Chronicle of Higher Education and Moody's Investors Services in December 2008.

NAICU serves as the unified national voice of independent higher education. Since 1976, the association has represented private colleges and universities on policy issues with the federal government, such as those affecting student aid, taxation, and government regulation. With more than 1,000 member institutions and associations, NAICU reflects the diversity of private, nonprofit higher education in the United States. NAICU members enroll nine out of every 10 students attending private institutions. They include traditional liberal arts colleges, major research universities, comprehensive universities, church- and faith-related institutions, historically black colleges, Hispanic-serving institutions, single-sex colleges, art institutions, two-year colleges, and schools of law, medicine, engineering, business, and other professions.

###

February 13, 2009

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About the items posted on the NAICU site: News items, features, and opinion pieces posted on this site from sources outside NAICU do not necessarily reflect the position of the association or its members. Rather, this content reflects the diversity of issues and views that are shaping American higher education.

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