Finally, Good News About Some Colleges' Costs

I've got to hand it to Seton Hall University. It has figured out a way to gain some positive headlines, enhance the quality of its student body and demonstrate that maybe the cost of attending college doesn't have to rise every blessed year.

Here's the story. If candidates for admission to the Hall have a combined 1200 on the SAT in math and verbal and graduate in the top 10 percent of their class, they will be eligible to pay about $10,000 in tuition -- in direct competition with the cost of Rutgers -- at a savings of $21,000 over the usual Seton Hall tuition. If the student maintains a 3.0 average each year, that reduced rate will remain in effect throughout their time at SHU.

My questions: if it is that easy to lower tuition, why don't richer schools do it? And, a related question, will other students' fees go up to subsidize this new program?

But wait, here's another innovative concept, at Randolph-Macon College. Randy Mac now offers a guarantee of graduation in four years. Here are the stipulations: the student has to keep up with coursework, meet with advisers (and not change their major senior year, or take a year off, etc.) If so, the college guarantees graduation in four years -- and if a needed course isn't available or bad advice is given, the school will foot the bill for the courses needed to graduate.

This is a big deal, since today only 80% of students in private colleges graduate in four years; the number goes down to 50% for public colleges. So when the four years are exceeded, it's that much more for tuition, that much more in loans.

There is a sense of grandstanding about both schools' actions -- but maybe we need more gestures of this sort to get us all thinking about how this college cost thing might be dealt with more creatively.

Any ideas?

The Money Conversation -- What Are You Saying to Your Teens?

In this series of posts on paying for college, I asked Mom's College Cram Course panelists if they were telling their children to factor in cost as they were thinking about colleges, or were they taking the "Apply, get in, and we'll see what we can do" approach. Here's what they had to say.

"Our pact with our kids has always been do your best in school and we will find a way to send you to your first choice school. We are not limiting choices due to cost," said Tina Squyres. "Our older daughter was given a full scholarship at one school and a decent scholarship at another...neither was a top choice. She chose a school that does not offer merit scholarships."

Another mom, Deborah Gaines, said, "I’ve told my daughter that she will get to go to the school of her dreams when she finds it/if she gets in, even if it means me taking out big loans. That said, she is aware of the financial issues, will be working this summer to save money for school (hopefully to be used for extras like a new computer or a car if she needs one), and knows she needs to be open to the fact that the school may not be one currently on her radar."

Jeanne Hogle is also giving her daughter free rein in the selection process. "Many colleges have very large endowments which reduce the final cost for families dramatically. My daughter is very smart, works hard, takes AP classes, and is studying to get the highest score she can on her SATs."

One of our admissions officer panelists made this point: "I’ve talked with many friends and colleagues over the years who attended private colleges (and whose parents attended college), and their attitude was much more the 'apply and we’ll figure it out' approach. I think it comes down to how higher education is viewed by the family. If it’s considered as essential as owning a home, families look for a way to make it work. If it’s considered a 'luxury' item (my own father’s view back in the day), it’s hard for them to justify the cost."

At our house, well, yes, there are no restrictions. And a quality education is considered an essential part of life. But that is tempered somewhat; our daughter does understand that a less expensive undergraduate school means there might be money to get started in graduate school.

Knut Lundberg, with Factius Financial Strategies, believes students "should have some skin in the game." Whether that takes the form of loans that aren't too onerous, or working during summers or the school year, it's a philosophy that many parents believe in -- including those quoted here. When it comes to paying for college (or at least some of the expenses related to the overall cost), it makes sense for all parties to be involved.

Forget the Tea Party - Let's Start the Tuition Coalition!

I suppose some could argue that worrying about the cost of college doesn't really help a student get into one -- which is, after all, the purpose of this blog. But it seems that cost will increasingly be a factor for nearly all parents of the college bound, including those of us who started saving when the teens were babies.

To the lay people supporting the expensive college habit, it seems that too much is spent on sports, too much paid to administrators, too many dollars devoted to the incredibly manicured and gorgeous campuses that appeal to us even as we deplore what it takes to achieve the look. Those of us who've seen our own changes in spending during the past few years wonder why the same isn't happening at colleges. (I know, of course, that many public universities have seen their budgets cut, and private college endowments took a beating -- but the relentless upward spiral of costs has been going on for decades.)

Froma Harrop has written a column about the discrepancy between income and the cost of an education.

The Tea Party isn't my cuppa. But a Tuition Coalition? That's a movement worth considering.

NOTE: Back to things we can do something about. Linda Auld, of Suburban Learning Center in New Jersey, has some interesting comments/practical thoughts stemming from the Sept. 9 post on PSATs and the Sept. 16 CliffNotes discussion. Be sure to read them.

Private College Costs -- An Odd Equality in Prices?

I live to destroy newspapers and magazines. Not the institutions -- I am a great fan of paper versions (am I giving an age range away?) -- but my personal copies. I have ripped out thousands of articles, columns, recipes, how to lose weight articles.

And I have been thinking about writing this blog for a long time. So I have an article from the April 27, 2009 Fortune that raised an issue I'd wondered about. The piece, called "Top Dollar, Lesser School," asks why lower-tier private colleges cost as much as an Ivy.

A mighty fine education can be gotten outside of the Ivy League and other well-ranked elite schools. That is not the issue. The question is how can they charge as much when they lack comparable faculty, resources and prestige?

Blame it on supply and demand (lots of kids wanting to go to college, without an increase in schools) and the so-called "Chivas Regal" effect. That's the belief that a high price tag confers status. Discounting would cheapen the brand, so these schools only discount in the form of a merit scholarship. The top tier schools don't offer those, but do try to help those families with lower incomes.

According to the reporter, the perceived best schools actually undercharge but for many reasons can't raise their prices even higher. I guess we should be grateful for that good news.