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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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NAICU Membership Elects 2009-10 Board of Directors

NAICU Membership Elects 2009-10 Board of Directors

February 09, 2009

WASHINGTON, D.C.— The members of the National Association of Independent Colleges and Universities (NAICU) have selected 15 new board directors and four new board officers for 2009-10.  NAICU is the leading national association representing private higher education, serving as the unified voice of more than 1,000 independent college and university presidents, and specialized, state, and regional association executives.  NAICU member institutions enroll nine out of every 10 students attending a private college or university in the United States.  

Members of NAICU’s board of directors set the association’s agenda on federal higher education policy; actively encourage support of NAICU priorities and initiatives; and oversee the association’s financial administration.  Members serve three-year terms.

“NAICU’s new board members and officers were selected by their peers because of their expertise in the field, proven leadership, and commitment to America’s college students,” said NAICU President David L. Warren. “They assume their responsibilities at a time of great challenge and transformation for American higher education. 

“The economic downturn, growing student financial need, and the push for greater accountability are among the dynamics affecting higher education,” Warren said. 

“Decisions made in Washington over the coming months and years will have significant consequences for whether students can afford to attend the institution of their choice,” Warren said. “Congress and the administration have the opportunity to make college more affordable, safeguard the American system of decentralized higher education, and work constructively with institutions to advance the nation’s economic strength, security, and science leadership. Our new board members and leaders will be critical to our efforts to make these goals a reality.”

New NAICU Board Officers

Dr. Joseph J. McGowan, president of Bellarmine University in Louisville, Ky., has been elected chair of the NAICU board of directors. His one-year term as chair of NAICU=s board was ratified February 4 by member college and university presidents at the 2009 NAICU Annual Meeting.  Vice chair of the board in 2008-09, McGowan succeeds Victor Boschini, Jr.,  chancellor of Texas Christian University in Fort Worth, Texas, who remains on the board as past chair.

McGowan came to the Bellarmine presidency in 1990 after having served for 22 years at Fordham University in New York as a vice president and dean.  Prior to that he was an admissions and financial aid officer at the University of Notre Dame. McGowan received his doctorate from Columbia University, and his bachelor’s and master’s degrees from the University of Notre Dame.  He also is a graduate of Harvard University’s Institute for Educational Management. 

Dr. John E. Bassett, president, Clark University, in Worcester, Mass., has been named vice chair. Bassett became president of Clark in July of 2000. Prior to his presidency, he served as dean of the college of arts and sciences at Case Western Reserve University. Bassett received his doctorate from the University of Rochester, and his bachelor’s and master’s degrees from Ohio Wesleyan University. 

Dr. Stephen G. Jennings, president of the University of Evansville in Evansville, Ind., has been named secretary. 

Dr. Lanny Hall, president of Howard Payne University in Brownwood, Texas, has been named treasurer. 

Eight new members were elected to three-year terms on the NAICU board, representing the association=s national regions:

Dr. Mary Ellen Jukoski, president, Mitchell College, New London, Conn.
Region I (Conn., Maine, Mass., N.H., R.I., Vt.)

Mr. Richard A. Levao, president, Bloomfield College, Bloomfield, N.J.
Region II (Del., D.C., Md., N.J., N.Y.)

Dr. Pamela Balch, president, West Virginia Wesleyan College, Buckhannon, W. Va.
Region III (Ky., Ohio, Pa., W.Va.)

Trudie Kibbe Reed, president, Bethune-Cookman College, Daytona Beach, Fla.
Region IV (Fla., Ga., N.C., S.C., Va.)

Sr. Rose Marie Kujawa, president, Madonna University, Livonia, Mich.
Region V (Ill., Ind., Mich., Wis.)

Dr. David Burks, president, Harding University, Searcy, Ark.
Region VI (Ala., Ark., La., Miss., Okla., Tenn., Texas)

Dr. Janet S. Philipp, president, Dana College, Blair, Neb.
Region VII (Iowa, Kan., Minn., Mo., Neb., N.D., S.D.)

Rev. Robert B. Lawton, S.J., president, Loyola Marymount University, Los Angeles, Calif.
Region VIII (Alaska, Ariz., Calif., Colo., Hawaii, Idaho, Mont., N.M., Nev., Ore., Utah, Wash., Wyo.)

Four presidents have been named to three-year terms as at-large members of the board:

Dr. George S. Bridges, president, Whitman College, Walla Walla, Wash.

Dr. Nathan Hatch, president, Wake Forest University, Winston-Salem, N.C.

Dr. Mary J. Meehan, president, Alverno College, Milwaukee, Wis.

Dr. John Sexton, president, New York University, New York, N.Y. 

One individual has been selected to serve a three-year term as a representative of the National Association of Independent College and University State Executives:

Dr. Claude Pressnell, president, Tennessee Independent Colleges and Universities, Nashville, Tenn.

One individual has been selected to serve a three-year term as a non-voting member of the board:

Cameron P. Taylor, director of federal affairs, Emory University, Atlanta, Ga.

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. 

###

 

WASHINGTON, D.C.— The members of the National Association of Independent Colleges and Universities (NAICU) have selected 15 new board directors and four new board officers for 2009-10.  NAICU is the leading national association representing private higher education, serving as the unified voice of more than 1,000 independent college and university presidents, and specialized, state, and regional association executives.  NAICU member institutions enroll nine out of every 10 students attending a private college or university in the United States.  

Members of NAICU’s board of directors set the association’s agenda on federal higher education policy; actively encourage support of NAICU priorities and initiatives; and oversee the association’s financial administration.  Members serve three-year terms.

“NAICU’s new board members and officers were selected by their peers because of their expertise in the field, proven leadership, and commitment to America’s college students,” said NAICU President David L. Warren. “They assume their responsibilities at a time of great challenge and transformation for American higher education. 

“The economic downturn, growing student financial need, and the push for greater accountability are among the dynamics affecting higher education,” Warren said. 

“Decisions made in Washington over the coming months and years will have significant consequences for whether students can afford to attend the institution of their choice,” Warren said. “Congress and the administration have the opportunity to make college more affordable, safeguard the American system of decentralized higher education, and work constructively with institutions to advance the nation’s economic strength, security, and science leadership. Our new board members and leaders will be critical to our efforts to make these goals a reality.”

New NAICU Board Officers

Dr. Joseph J. McGowan, president of Bellarmine University in Louisville, Ky., has been elected chair of the NAICU board of directors. His one-year term as chair of NAICU=s board was ratified February 4 by member college and university presidents at the 2009 NAICU Annual Meeting.  Vice chair of the board in 2008-09, McGowan succeeds Victor Boschini, Jr.,  chancellor of Texas Christian University in Fort Worth, Texas, who remains on the board as past chair.

McGowan came to the Bellarmine presidency in 1990 after having served for 22 years at Fordham University in New York as a vice president and dean.  Prior to that he was an admissions and financial aid officer at the University of Notre Dame. McGowan received his doctorate from Columbia University, and his bachelor’s and master’s degrees from the University of Notre Dame.  He also is a graduate of Harvard University’s Institute for Educational Management. 

Dr. John E. Bassett, president, Clark University, in Worcester, Mass., has been named vice chair. Bassett became president of Clark in July of 2000. Prior to his presidency, he served as dean of the college of arts and sciences at Case Western Reserve University. Bassett received his doctorate from the University of Rochester, and his bachelor’s and master’s degrees from Ohio Wesleyan University. 

Dr. Stephen G. Jennings, president of the University of Evansville in Evansville, Ind., has been named secretary. 

Dr. Lanny Hall, president of Howard Payne University in Brownwood, Texas, has been named treasurer. 

Eight new members were elected to three-year terms on the NAICU board, representing the association=s national regions:

Dr. Mary Ellen Jukoski, president, Mitchell College, New London, Conn.
Region I (Conn., Maine, Mass., N.H., R.I., Vt.)

Mr. Richard A. Levao, president, Bloomfield College, Bloomfield, N.J.
Region II (Del., D.C., Md., N.J., N.Y.)

Dr. Pamela Balch, president, West Virginia Wesleyan College, Buckhannon, W. Va.
Region III (Ky., Ohio, Pa., W.Va.)

Trudie Kibbe Reed, president, Bethune-Cookman College, Daytona Beach, Fla.
Region IV (Fla., Ga., N.C., S.C., Va.)

Sr. Rose Marie Kujawa, president, Madonna University, Livonia, Mich.
Region V (Ill., Ind., Mich., Wis.)

Dr. David Burks, president, Harding University, Searcy, Ark.
Region VI (Ala., Ark., La., Miss., Okla., Tenn., Texas)

Dr. Janet S. Philipp, president, Dana College, Blair, Neb.
Region VII (Iowa, Kan., Minn., Mo., Neb., N.D., S.D.)

Rev. Robert B. Lawton, S.J., president, Loyola Marymount University, Los Angeles, Calif.
Region VIII (Alaska, Ariz., Calif., Colo., Hawaii, Idaho, Mont., N.M., Nev., Ore., Utah, Wash., Wyo.)

Four presidents have been named to three-year terms as at-large members of the board:

Dr. George S. Bridges, president, Whitman College, Walla Walla, Wash.

Dr. Nathan Hatch, president, Wake Forest University, Winston-Salem, N.C.

Dr. Mary J. Meehan, president, Alverno College, Milwaukee, Wis.

Dr. John Sexton, president, New York University, New York, N.Y. 

One individual has been selected to serve a three-year term as a representative of the National Association of Independent College and University State Executives:

Dr. Claude Pressnell, president, Tennessee Independent Colleges and Universities, Nashville, Tenn.

One individual has been selected to serve a three-year term as a non-voting member of the board:

Cameron P. Taylor, director of federal affairs, Emory University, Atlanta, Ga.

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 09, 2009

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NAICU Survey Examines the Economic Concerns of Private College and University Leaders

NAICU Survey Examines the Economic Concerns of Private College and ...

December 18, 2008

NAICU Research Explores Presidential Perspectives on the Impact of the Economy on Private Colleges, Institutional Responses, and How the Federal Government Can Help 

For Immediate Release
December 18, 2008

Contact
Tony Pals, tony@naicu.edu
Office: 202-739-0474
Cell: 202-288-9333 

WASHINGTON, D.C., Dec. 18 – A new survey of private college and university presidents finds that fund raising, endowments, the availability of student aid, institutional debt, and student enrollment lead the list of campus economic concerns as the fall 2008 semester comes to an end.  The survey was conducted from Nov. 18 to Dec. 12 by the National Association of Independent Colleges and Universities (NAICU).

NAICU President David L. Warren provided the following comment:

"It is clear that there is much on the minds of college presidents this holiday season.  Presidents are wary about the potential fallout from the continuing economic turmoil, and are closely monitoring the impact on students, families, and their institutions.  Faced with a near perfect storm of financial challenges, private college and university presidents are moving proactively to protect the financial health of their institutions and ensure they remain affordable options in the higher education marketplace.

"No student should rule out a private college or university before checking into student aid options. Our institutions are well aware of the financial pressures facing families, and are doing what they can to help.  Private colleges are redoubling their efforts to offer a quality education at an affordable price to students from all backgrounds.  The federal government also has made extraordinary efforts recently to increase Pell Grant funding, provide access to more low-cost federal student loans, and stabilize the student and parent loan markets.  So, aid is available."

Most Pressing Concerns of Private College Presidents

Nearly all respondents rated fund raising, endowments, and student enrollment among their most pressing concerns.  Securing student loan availability and reducing the cost of institutional debt also rated highly.   

  • 97 percent of respondents were greatly or moderately concerned about preventing a decline in fund raising
  • 96 percent were greatly or moderately concerned about protecting endowment value
  • 93 percent were greatly or moderately concerned about preventing a decline in student enrollment
  • 87 percent were greatly or moderately concerned about securing student loan availability
  • 62 percent were greatly or moderately concerned about reducing the cost of institutional debt

Impact of the Economic Downturn on Institutional Financial Health

Survey responses indicated that institutions have been hit broadly by the economic downturn.   

  • 97 percent of respondents reported that endowments had been affected or significantly affected.
  • 90 percent reported that fund raising had been affected or significantly affected.
  • 82 percent indicated that demand for student aid had been affected or significantly affected.
  • 69 percent indicated that student/parent loan availability had been affected or significantly affected.
  • 53 percent reported that institutional debt/cost of debt had been affected or significantly affected.
  • 52 percent indicated that student enrollment had been affected or significantly affected. 

Nearly half (49 percent) of responding presidents were anticipating a one percent to 10 percent decline in enrollment for the spring 2009 semester.  Seven percent expected to see a decline of 11 percent or more.  While institutions often experience a second-semester drop in enrollment during a typical academic year, many reported these anticipated drops were larger than normal.  Thirty-one percent of respondents projected no change in enrollment, while 13 percent anticipated an increase. 

Institutional Responses: Cost-Cutting

Responding presidents reported that the leading areas targeted for cost savings were staff hiring; construction, renovation, and maintenance; travel; and salaries.   

  • 50 percent have frozen new hiring, or plan to
  • 49 percent have slowed down current construction/renovation projects, or plan to
  • 49 percent have restricted staff travel, or plan to
  • 42 percent have given smaller than usual salary increases, or plan to
  • 39 percent have delayed maintenance, or plan to
  • 22 percent have frozen salaries, or plan to
  • 22 percent have cancelled planned construction/renovation projects, or plan to
  • 16 percent have laid off non-faculty staff, or plan to
  • 11 percent have laid off faculty, or plan to
  • 10 percent have cut student services, or plan to
  • 8 percent have cut or frozen institutional student aid budgets, or plan to
  • 8 percent have cut academic programs, or plan to
  • 7 percent have cut salaries/benefits, or plan to

Institutional Responses: Revenue Generators

Slightly more than two-thirds (69 percent) of respondents said they were planning to increase tuition for 2009-10.  (Five percent reported that they have frozen, or were considering freezing tuition levels, for the coming year.)  Two-thirds (65 percent) of respondents said they are focused on increasing enrollment, while 42 percent created, or were planning to create, new academic/extension programs or continuing education options.  Less than 10 percent of respondents have borrowed funds or sold off assets (or have plans to do so). 

How Can the Federal Government Help?

Respondents widely supported a number of proposed steps that the federal government could take to assist students and institutions struggling during the economic turmoil.

  • 98 percent said increasing the Pell Grant by $500 would be helpful or extremely helpful
  • 98 percent said increasing federal student loan limits would be helpful or extremely helpful
  • 98 percent said making PLUS loans easier to borrow would be helpful or extremely helpful
  • 96 percent said extending the student loan grace period for new graduates from six months to 12 months would be helpful or extremely helpful
  • 95 percent said providing liquidity (i.e., financing, guarantees) or other mechanisms to support private student loans would be helpful or extremely helpful
  • 76 percent said funding current or “ready-to-go” construction or renovation projects would be helpful or extremely helpful.
  • 70 percent said refinancing institutional debt at a low-interest, fixed rate would be helpful or extremely helpful.

Institutional Efforts to Assist Students

Beyond the survey results collected by NAICU, a growing number of private colleges and universities have announced new measures designed to help students and families during the economic downturn.  A regularly updated list of these campus examples is at www.naicu.edu/affordability

They include institutions that are limiting their tuition increases to the lowest levels seen in years – in some cases, decades; freezing tuition levels; expanding programs that replace loans with grants; lowering the amount of loans that students are expected to take out; matching public university tuition; discounting tuition for alumni and others who have been displaced from their jobs; guaranteeing students will graduate within four years; guaranteeing students will be employed or enrolled in graduate school within six months of graduating; and more.   

Full Survey Results

The complete survey questions and responses are available for download. (Note: Minor updates were made to the survey results on Jan. 30, 2009. The news release (dated Dec. 18, 2008) has also been updated to reflect these changes.)

About the Survey

The survey was conducted from Nov. 18 to Dec. 12 by the National Association of Independent Colleges and Universities.  Of NAICU’s 952 member institutions, 372 completed the survey, for a response rate of 38 percent. 

About NAICU

NAICU serves as the unified national voice of independent higher education. With more than 1,000 member institutions and associations nationwide, 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, two-year colleges, and schools of law, medicine, engineering, business, and other professions.

###

NAICU Research Explores Presidential Perspectives on the Impact of the Economy on Private Colleges, Institutional Responses, and How the Federal Government Can Help 

For Immediate Release
December 18, 2008

Contact
Tony Pals, tony@naicu.edu
Office: 202-739-0474
Cell: 202-288-9333 

WASHINGTON, D.C., Dec. 18 – A new survey of private college and university presidents finds that fund raising, endowments, the availability of student aid, institutional debt, and student enrollment lead the list of campus economic concerns as the fall 2008 semester comes to an end.  The survey was conducted from Nov. 18 to Dec. 12 by the National Association of Independent Colleges and Universities (NAICU).

NAICU President David L. Warren provided the following comment:

"It is clear that there is much on the minds of college presidents this holiday season.  Presidents are wary about the potential fallout from the continuing economic turmoil, and are closely monitoring the impact on students, families, and their institutions.  Faced with a near perfect storm of financial challenges, private college and university presidents are moving proactively to protect the financial health of their institutions and ensure they remain affordable options in the higher education marketplace.

"No student should rule out a private college or university before checking into student aid options. Our institutions are well aware of the financial pressures facing families, and are doing what they can to help.  Private colleges are redoubling their efforts to offer a quality education at an affordable price to students from all backgrounds.  The federal government also has made extraordinary efforts recently to increase Pell Grant funding, provide access to more low-cost federal student loans, and stabilize the student and parent loan markets.  So, aid is available."

Most Pressing Concerns of Private College Presidents

Nearly all respondents rated fund raising, endowments, and student enrollment among their most pressing concerns.  Securing student loan availability and reducing the cost of institutional debt also rated highly.   

  • 97 percent of respondents were greatly or moderately concerned about preventing a decline in fund raising
  • 96 percent were greatly or moderately concerned about protecting endowment value
  • 93 percent were greatly or moderately concerned about preventing a decline in student enrollment
  • 87 percent were greatly or moderately concerned about securing student loan availability
  • 62 percent were greatly or moderately concerned about reducing the cost of institutional debt

Impact of the Economic Downturn on Institutional Financial Health

Survey responses indicated that institutions have been hit broadly by the economic downturn.   

  • 97 percent of respondents reported that endowments had been affected or significantly affected.
  • 90 percent reported that fund raising had been affected or significantly affected.
  • 82 percent indicated that demand for student aid had been affected or significantly affected.
  • 69 percent indicated that student/parent loan availability had been affected or significantly affected.
  • 53 percent reported that institutional debt/cost of debt had been affected or significantly affected.
  • 52 percent indicated that student enrollment had been affected or significantly affected. 

Nearly half (49 percent) of responding presidents were anticipating a one percent to 10 percent decline in enrollment for the spring 2009 semester.  Seven percent expected to see a decline of 11 percent or more.  While institutions often experience a second-semester drop in enrollment during a typical academic year, many reported these anticipated drops were larger than normal.  Thirty-one percent of respondents projected no change in enrollment, while 13 percent anticipated an increase. 

Institutional Responses: Cost-Cutting

Responding presidents reported that the leading areas targeted for cost savings were staff hiring; construction, renovation, and maintenance; travel; and salaries.   

  • 50 percent have frozen new hiring, or plan to
  • 49 percent have slowed down current construction/renovation projects, or plan to
  • 49 percent have restricted staff travel, or plan to
  • 42 percent have given smaller than usual salary increases, or plan to
  • 39 percent have delayed maintenance, or plan to
  • 22 percent have frozen salaries, or plan to
  • 22 percent have cancelled planned construction/renovation projects, or plan to
  • 16 percent have laid off non-faculty staff, or plan to
  • 11 percent have laid off faculty, or plan to
  • 10 percent have cut student services, or plan to
  • 8 percent have cut or frozen institutional student aid budgets, or plan to
  • 8 percent have cut academic programs, or plan to
  • 7 percent have cut salaries/benefits, or plan to

Institutional Responses: Revenue Generators

Slightly more than two-thirds (69 percent) of respondents said they were planning to increase tuition for 2009-10.  (Five percent reported that they have frozen, or were considering freezing tuition levels, for the coming year.)  Two-thirds (65 percent) of respondents said they are focused on increasing enrollment, while 42 percent created, or were planning to create, new academic/extension programs or continuing education options.  Less than 10 percent of respondents have borrowed funds or sold off assets (or have plans to do so). 

How Can the Federal Government Help?

Respondents widely supported a number of proposed steps that the federal government could take to assist students and institutions struggling during the economic turmoil.

  • 98 percent said increasing the Pell Grant by $500 would be helpful or extremely helpful
  • 98 percent said increasing federal student loan limits would be helpful or extremely helpful
  • 98 percent said making PLUS loans easier to borrow would be helpful or extremely helpful
  • 96 percent said extending the student loan grace period for new graduates from six months to 12 months would be helpful or extremely helpful
  • 95 percent said providing liquidity (i.e., financing, guarantees) or other mechanisms to support private student loans would be helpful or extremely helpful
  • 76 percent said funding current or “ready-to-go” construction or renovation projects would be helpful or extremely helpful.
  • 70 percent said refinancing institutional debt at a low-interest, fixed rate would be helpful or extremely helpful.

Institutional Efforts to Assist Students

Beyond the survey results collected by NAICU, a growing number of private colleges and universities have announced new measures designed to help students and families during the economic downturn.  A regularly updated list of these campus examples is at www.naicu.edu/affordability

They include institutions that are limiting their tuition increases to the lowest levels seen in years – in some cases, decades; freezing tuition levels; expanding programs that replace loans with grants; lowering the amount of loans that students are expected to take out; matching public university tuition; discounting tuition for alumni and others who have been displaced from their jobs; guaranteeing students will graduate within four years; guaranteeing students will be employed or enrolled in graduate school within six months of graduating; and more.   

Full Survey Results

The complete survey questions and responses are available for download. (Note: Minor updates were made to the survey results on Jan. 30, 2009. The news release (dated Dec. 18, 2008) has also been updated to reflect these changes.)

About the Survey

The survey was conducted from Nov. 18 to Dec. 12 by the National Association of Independent Colleges and Universities.  Of NAICU’s 952 member institutions, 372 completed the survey, for a response rate of 38 percent. 

About NAICU

NAICU serves as the unified national voice of independent higher education. With more than 1,000 member institutions and associations nationwide, 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, two-year colleges, and schools of law, medicine, engineering, business, and other professions.

###

December 18, 2008

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Private College Leaders to Explore the Economic Downturn, Impact of the 2008 Election, and Other Top Issues at the 2009 NAICU Annual Meeting

Private College Leaders to Explore the Economic Downturn, Impact of...

December 11, 2008

FOR IMMEDIATE RELEASE

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

WHAT: 2009 NAICU Annual Meeting: Leading in an Uncertain Time

Hundreds of private college and university presidents and top campus officials will meet with leading public opinion and political analysts, respected national thinkers, and fellow higher education decision makers to explore the challenges and opportunities facing private higher education, our students, and the nation in this time of economic turmoil and political change.

WHEN: February 1-4, 2009

WHERE:
Hyatt Regency Washington on Capitol Hill
400 New Jersey Avenue, NW
Washington, D.C.
202-737-1234

Preliminary List of Speakers Includes:

CBS News Moderator Bob Schieffer ● David Walker, President/CEO, Peter G. Peterson Foundation and former U.S. Comptroller General ● Dartmouth College President James Wright ● Washington Post Columnist Eugene Robinson ● Gerald Seib, Wall Street Journal Executive Washington Editor ● Educause President/CEO Diane Oblinger ● Chronicle of Higher Education Editor Jeff Selingo ● Higher Education Marketing Experts George Dehne, Elizabeth Scarborough, and Robert Sevier

Issues Include:

Fiscal and economic challenges facing the U.S. and higher education ● Outlook for the Obama administration and 111th Congress ● Private colleges and the new GI Bill ● Impact of emerging information technology on students and institutions ● Trends in student preferences and college marketing

Preliminary Schedule of Events: www.naicu.edu/2009AnnualMeeting

Media Registration:

Form available at www.naicu.edu/2009mediaregistration, or by calling 202-739-0474 (direct office) or 202-288-9333 (cell). You may also e-mail your name, title, organization, and contact information to tony@naicu.edu. Please register by COB Friday, January 30.

 

FOR IMMEDIATE RELEASE

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

WHAT: 2009 NAICU Annual Meeting: Leading in an Uncertain Time

Hundreds of private college and university presidents and top campus officials will meet with leading public opinion and political analysts, respected national thinkers, and fellow higher education decision makers to explore the challenges and opportunities facing private higher education, our students, and the nation in this time of economic turmoil and political change.

WHEN: February 1-4, 2009

WHERE:
Hyatt Regency Washington on Capitol Hill
400 New Jersey Avenue, NW
Washington, D.C.
202-737-1234

Preliminary List of Speakers Includes:

CBS News Moderator Bob Schieffer ● David Walker, President/CEO, Peter G. Peterson Foundation and former U.S. Comptroller General ● Dartmouth College President James Wright ● Washington Post Columnist Eugene Robinson ● Gerald Seib, Wall Street Journal Executive Washington Editor ● Educause President/CEO Diane Oblinger ● Chronicle of Higher Education Editor Jeff Selingo ● Higher Education Marketing Experts George Dehne, Elizabeth Scarborough, and Robert Sevier

Issues Include:

Fiscal and economic challenges facing the U.S. and higher education ● Outlook for the Obama administration and 111th Congress ● Private colleges and the new GI Bill ● Impact of emerging information technology on students and institutions ● Trends in student preferences and college marketing

Preliminary Schedule of Events: www.naicu.edu/2009AnnualMeeting

Media Registration:

Form available at www.naicu.edu/2009mediaregistration, or by calling 202-739-0474 (direct office) or 202-288-9333 (cell). You may also e-mail your name, title, organization, and contact information to tony@naicu.edu. Please register by COB Friday, January 30.

 

December 11, 2008

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NAICU Statement on the College Board's Trends in College Pricing and Student Aid Reports

NAICU Statement on the College Board's Trends in College Pricing an...

October 29, 2008

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

Statement by David L. Warren, President, National Association of Independent Colleges and Universities, on the 2008 College Board Trends in College Pricing and Student Aid Reports

 

Every private college and university president understands the financial challenges facing students and families, and their concerns about growing college tuition.  In these tough economic times, job one of every private college and university will be keeping their student aid budgets in line with growing financial need, and working creatively to keep student out-of-pocket costs as low as possible.  

In the coming months, we will see independent institutions digging deep to find the financial resources necessary to remain an affordable option for students from all backgrounds.  Spending in other areas of campus budgets will be curtailed at many institutions, as endowment returns fall and fund raising slows.  Some institutions will implement hiring freezes, and some will put campus construction and renovation projects on hold.

Despite a significant jump in inflation, private colleges kept their average tuition increase for 2008-09 to 5.9 percent.  When adjusted for inflation, this translates into a 0.3 percent increase.  Institutionally-provided student aid, which historically rises at a faster rate than tuition, further tempers the impact of this increase on student out-of-pocket costs.  If current economic patterns continue, it is possible that some tuition increases next year will be higher than the usual 5 to 6 percent at our institutions.  However, the volatile nature of the stock market, and the unknown impact of the election outcome on the nation’s economic path, makes forecasting college pricing decisions difficult.  Most private colleges set tuition for the coming year during the winter or spring. 

No student should rule out a private college and university without first checking with the institution about financial aid options.  Over the past 10 years, independent institutions have increased student aid by 250 percent, more than three times the rate of tuition (72 percent).  Students at private colleges receive six times as much in grant aid from their institutions as from all federal sources.  Eighty-one percent of full-time, dependent students at private colleges receive institutional grant aid, averaging $10,011.  As a result, our institutions enroll the same percentage of low-income and minority students as public four-year universities. 

Private colleges will think and act creatively to enhance their affordability while maintaining quality, within their financial means.  Already, Augustana College has announced that its 2009-10 tuition increase will be its lowest in 25 years, Benedictine University is freezing its tuition rate for the next two years, and Vanderbilt University will replace need-based loans with grants beginning next year.

More information about private college tuition and student aid trends, new campus affordability initiatives, and college cost-cutting efforts is available on the NAICU Web site at www.naicu.edu/collegecost

About NAICU

NAICU serves as the unified national voice of independent higher education.  With more than 1,000 member institutions and associations nationwide, NAICU reflects the diversity of private, nonprofit higher education in the United States.  NAICU members enroll 85 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. 

###

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

Statement by David L. Warren, President, National Association of Independent Colleges and Universities, on the 2008 College Board Trends in College Pricing and Student Aid Reports

 

Every private college and university president understands the financial challenges facing students and families, and their concerns about growing college tuition.  In these tough economic times, job one of every private college and university will be keeping their student aid budgets in line with growing financial need, and working creatively to keep student out-of-pocket costs as low as possible.  

In the coming months, we will see independent institutions digging deep to find the financial resources necessary to remain an affordable option for students from all backgrounds.  Spending in other areas of campus budgets will be curtailed at many institutions, as endowment returns fall and fund raising slows.  Some institutions will implement hiring freezes, and some will put campus construction and renovation projects on hold.

Despite a significant jump in inflation, private colleges kept their average tuition increase for 2008-09 to 5.9 percent.  When adjusted for inflation, this translates into a 0.3 percent increase.  Institutionally-provided student aid, which historically rises at a faster rate than tuition, further tempers the impact of this increase on student out-of-pocket costs.  If current economic patterns continue, it is possible that some tuition increases next year will be higher than the usual 5 to 6 percent at our institutions.  However, the volatile nature of the stock market, and the unknown impact of the election outcome on the nation’s economic path, makes forecasting college pricing decisions difficult.  Most private colleges set tuition for the coming year during the winter or spring. 

No student should rule out a private college and university without first checking with the institution about financial aid options.  Over the past 10 years, independent institutions have increased student aid by 250 percent, more than three times the rate of tuition (72 percent).  Students at private colleges receive six times as much in grant aid from their institutions as from all federal sources.  Eighty-one percent of full-time, dependent students at private colleges receive institutional grant aid, averaging $10,011.  As a result, our institutions enroll the same percentage of low-income and minority students as public four-year universities. 

Private colleges will think and act creatively to enhance their affordability while maintaining quality, within their financial means.  Already, Augustana College has announced that its 2009-10 tuition increase will be its lowest in 25 years, Benedictine University is freezing its tuition rate for the next two years, and Vanderbilt University will replace need-based loans with grants beginning next year.

More information about private college tuition and student aid trends, new campus affordability initiatives, and college cost-cutting efforts is available on the NAICU Web site at www.naicu.edu/collegecost

About NAICU

NAICU serves as the unified national voice of independent higher education.  With more than 1,000 member institutions and associations nationwide, NAICU reflects the diversity of private, nonprofit higher education in the United States.  NAICU members enroll 85 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. 

###

October 29, 2008

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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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