September 2011 newsletter
share this pageThe net price calculator effect
Estimating college costs is about to get easier. Starting this October, a federal mandate requires colleges to offer a "net price calculator" on their websites. Also known as "financial aid estimators," these tools will give families a better idea of what they might pay at a particular institution.
"It's forcing a level of transparency about financial aid that we haven't had before," said Eric Berg, vice president of enrollment at The College of St. Scholastica in Duluth. To use one of the tools, a family enters information about the household, such as income, size and savings — as well as basic academic information about the student's GPA and ACT score. The tool estimates financial aid, then subtracts it from a college's listed price to show the "net price" a student would pay each year.
Colleges currently have three options: they can use the free version from the Department of Education, develop their own tool (in line with federal requirements), or use a third party product. Tools vary in the amount of information they require and the level of accuracy of the results. "There will be lots of different looks and a wide range of functionality," Berg said.
One of St. Scholastica's goals is to show families that a healthy combination of need and merit aid is available from the institution. "It may change how they look at us; we may not be quite as inexpensive as a public institution, but it shows we're still in a very reasonable range," Berg said. He hopes that these tools will help students do an initial vetting of the colleges they're interested in, but that they'll follow up by visiting campus and meeting with financial aid staff.
St. Scholastica will begin using a new estimator in October that will incorporate more interactive features so people can ask questions and get more information. Staff will also be able to better track usage, including who clicked for more information or left before finishing filling it out, Berg said.
An early adopter
Carleton College launched its financial aid calculator in early 2010. "We had been thinking about it for years and the mandate helped push us to do it," said Rod Oto, director of student financial services at the college. He sees it as an opportunity to show that Carleton can be affordable. In fact, he would like to see people start using it as early as sixth grade. He said that would give families more time to prepare.
The college makes its calculator very visible on its website and it gets used 400 to 500 times per month. "We don't have anything to hide; we've had a positive response so far," Oto said.
Carleton uses a calculator developed by Minneapolis-based Hardwick-Day. It requires more information than some tools, but gives a fairly accurate estimate, Oto said. For example, since Carleton looks at the equity a family has in its home when calculating need, that information is included.
These tools should give a close estimate if the information is entered correctly, said Dave Busse, a managing director at Hardwick-Day. "They can reassure low- and middle-income families that private college is a possibility so that they can make a decision based on the net price rather than the sticker price," he said.
Hardwick-Day's president Jim Day believes that we won't have a clear view of what colleges and universities have done with their net price calculators until the dust settles in November. "We expect that there will be great variation in where institutions place the calculators on their websites, and how accurate the results are," he said. Day notes that the Department of Education and policy groups are already anticipating additional regulation.
For private colleges, Day thinks the opportunity lies in whether middle-income families with capable students, who might have written off private colleges for reasons of cost, will find they are more affordable than they had thought. He sees an opening for more families to realize that this is an investment they can afford, especially in contrast with the diminished educational experience that typifies larger research universities in the public sector.
Keeping it simple
Bethel University built its own calculator that went online last fall. "Our tool uses the building blocks we've used for years in our financial aid packages," said Jay Fedje, director of admissions. A decision was made to keep things simple, so the form requires a limited amount of information. Fedje stresses that it bases its estimates on averages; it isn't used to build actual financial aid packages. "It's a good tool if used correctly though," he said.
Fedje thinks calculators will be a boon for families. "In the past, students had to finish the financial aid process before they knew what their awards would be — going on faith that they would be able to afford Bethel. This gives them a ballpark cost much earlier on," he said.
Still, Fedje notes that the net cost is just a piece of the greater process. When making a college decision, he urges families to also consider what they'll be getting for their money. "Both affordability and value are important," he said.
Tips for families
Although calculators will vary by institution, Berg, Oto and Fedje all agree that they will help people with their planning. They also had some specific advice for families on using the tools:
- Inputs should be as accurate as possible. For example, if the GPA plugged into the calculator is different from what the transcript will show, the final award package could be different.
- Calculators work best if a family's finances are fairly stable. If annual income fluctuates widely or if there's a one-time income increase, that will change the estimate.
- Recognize that setting financial aid awards is both an art and a science. How institutions make awards is tied to their enrollment goals.
- It's okay to play around with different numbers for the "what-ifs." If an income increase is anticipated or if a job layoff is a possibility, try entering numbers for both scenarios.
- These tools can be valuable for families who are tempted to rule out an institution because of the perceived cost. Try the tools at public and private institutions to compare the estimated aid and net price.
View all calculators at Minnesota's Private Colleges.
The value of living on campus
For Javier Gutierrez, director of residential life at Hamline University, there are many student stories that affirm the value of living on campus. Often, he finds, it is the intangible aspects of residential life that make all the difference in a student's experience. He recalls one student who spent his freshman year living in the dorm and was excited to have an off-campus apartment sophomore year. Not far into the semester, the student came to his office and wanted to move back into campus housing. He missed the academic environment and the convenience of being on campus.
The student moved back in, got a job as the assistant coordinator of his residence hall and realized that living on campus was the best choice for him, Gutierrez said.
Indeed, while much is made of the importance of the residential life experience for first-year students — some institutions require students to live on campus, while others recommend it — the benefits of doing so can be hard to quantify or explain. As liberal arts institutions with small student bodies, many of Minnesota's Private Colleges have a strong tradition of undergraduates living on campus. But besides tradition, what makes living on campus a good idea?
"It's definitely a question we talk about a lot," said Brendan Dolan, assistant director of residential life at Saint Mary's University of Minnesota. "For us, it's about creating community, which is tied to our mission as one of the three tenets of the Christian Brothers (the group that founded Saint Mary's). We believe community is essential to the success of a student."
Dolan points to students having a built-in support network, easy access to campus resources and to an environment that is conducive to building lasting relationships as benefits of living on campus. It also helps with retention and contributes to higher graduation rates, he said. "The experience acts as an anchor and makes students want to stay at the university. The experience of living with so many people means they are having conversations with students in their major so they are more informed academically, too," Dolan said.
On campus by choice
While living on campus isn't required for all four years at Saint Mary's, almost all first-year students live on campus and a majority of students live on campus all four years, Dolan said.
At Hamline University, approximately 80 percent of first-year students live on campus, with almost all international and out-of-state students choosing to do so. "We encourage it, but it isn't required," said Gutierrez. Like Dolan, he believes that residential life is positive for students because of the social and community aspects, but notes that there are additional safety and security benefits and a strong "convenience factor" that helps students make good use of their time.
"Yes, you might be able to find cheaper rent off campus, but that doesn't include a lot of the extra costs of living on your own. Being on campus means having everything available when you need it — you can stay and work on assignments as late as you want and have an on-campus job as well," Gutierrez said.
On the academic end, he notes that there are studies comparing the grade point averages of students living on campus to those living off campus; the students living on campus tend to have slightly higher averages, he said. He attributes this to increased access to academic resources and to peer study groups in residence halls.
Better than your brother's dorm room
While the basics of living on campus are essentially the same, some aspects of residential life have changed for the better in recent years. Dorms and residence halls for first-year students still typically offer tight quarters and the challenges of living with a roommate, but now they offer up-to-date technology, entertainment options and other conveniences as well.
At the University of St. Thomas, where about 90 percent of first-year students live on campus, students have wireless internet and cable television in their rooms, said Mary Ann Ryan, executive director of campus and residence life. They also have access to free laundry facilities.
The last decade has brought increased emphasis on having places to hang out in residence halls as well as a need for more single rooms with individual bathrooms, Gutierrez said. And while some of the dorms at Hamline are older, more attention is paid to residence hall aesthetics than might have been in the past, with newer carpet, comfortable furniture and updated technology. "We do what we can to make it visually appealing," Gutierrez said.
Many campuses, St. Thomas included, have added apartment and townhome-style living options for upperclassmen as demand has increased for this type of campus housing, Ryan said.
Some institutions have made changes to residence hall programming in recent years, too. Rather than simply organizing a movie night or party, Dolan said halls programming is shifting toward a more educational focus. This means planning social justice, financial awareness and diversity-related events that are both fun and intentional. "We try to push ourselves so that students get more out of events than just the social aspect. We want to have more development opportunities for students and to connect them to other organizations," he said.
Students' response to these new types of events has been positive, he said. "We've had no problems with attendance," Dolan said.
Creating intentional communities
In addition to creating a welcoming community atmosphere for a campus as a whole, many of Minnesota's Private Colleges also foster living communities for students who want a specific kind of residence hall experience. This means a floor (or an entire house) might have a theme or cater to a certain type of student.
Hamline, for example, has a Hmong student house, in addition to an "advocacy and action" floor, a quiet lifestyle floor and a substance-free floor for students recovering from addiction issues. St. Thomas has floors devoted to the sophomore-year experience, Catholic men's and women's communities and wellness floors.
While such floors aren't a new idea, they help the residence hall experience meet the needs of specific students and groups, said Michael Grewe, assistant director of campus activities and orientation and coordinator of LGBTQIA (Lesbian, Gay, Bisexual, Transgender, Questioning, Intersex and Asexual) services at Augsburg College. "It's great to be on campus, but when you have a group of people who are intentionally supportive of who you are, it's an even better experience."
Augsburg has many intentional communities, including the "everybody loves everybody" floor, which is an LGBTQIA themed floor. The idea began in the fall of 2010, with a few students wanting to create such a space. Their efforts were so successful that this year there are three "everybody loves everybody" floors with a total of 72 students living on them. The majority of these students don't identify as LGBT, but consider themselves allies, Grewe said.
Grewe said that the "everybody loves everybody" floors are important for several reasons. "LGBT students are a group that can feel marginalized in student housing — they might not feel safe, or there might be conflicts with roommates. Some LGBT-identified students end up feeling that there is no point in living on campus, though there are benefits to doing so," he said. The response to the floor has been positive, with staff, students and faculty telling Grewe that they are proud to have such a community at Augsburg.
And what students at Minnesota's Private Colleges themselves say about living on campus is perhaps the best indicator of how valuable it can be. At St. Thomas, Ryan said she often hears feedback from students about their residential experience. "The students give us lots of positive reinforcement about the sense of community they feel here. We have a wonderful staff, and we're really proud of the satisfaction students feel when they choose to live on campus."
To meet future demand for educated workers, our state must increase college participation and completion among low-income students. Yet there are concerns that the state in not maintaining its investment in higher education. The last decade has seen the beginning of a downward trend in both appropriations to public institutions and spending on need-based aid per capita.
State appropriations per undergraduate student attending public institutions have decreased 33% and need-based grant aid to recipients has decreased 3% since 1980 (see chart). Even though the State Grant aid funding amount appears relatively level, increases in college costs have decreased the buying power of these funds each year.
As for the downward trend in state support for public institutions, state support has not kept pace with growth in postsecondary enrollment. While total combined (need-based and public appropriations) inflation-adjusted dollars dedicated to higher education in Minnesota has increased 23% since 1980, total undergraduate enrollment has increased 65%.
As public funding for higher education has decreased, the onus for paying for higher education has passed through institutions on to students and their families. Student borrowing has steadily increased — up 225% since 1987. In 2009, 73% of students graduated with debt, averaging more than $27,000. This level of debt will limit their ability to fully participate in the economy via the purchase of homes, cars and other goods for years. For many it will also delay or eliminate their ability to start saving for their childrens' education as they pay off their own educational debt.
Minnesota has decreased support for students even though the need for increased educational attainment is widely acknowledged. The state would benefit from a broader review of these topics and how they intersect, given the likely ramifications of inaction.
For more detail, see the Minnesota Private College Research Foundation Research Brief, "Minnesota Educational Needs and Higher Education Finance Policy." The brief includes analysis of demand for postsecondary-educated individuals, trends in socioeconomic change, college participation of low-income students and policy responses to financing postsecondary education.
Fact you can use
More than a third (36%) of all Minnesota students attending our 17 member institutions are from outside the seven-county metro area.
Campus news
- Raina Belleau, a 2011 Minneapolis College of Art and Design graduate, created a massive sculpture from material she pulled from the Mississippi river this summer. With the sculpture, a mural project, and the redesign of the Fine Arts exhibition program, MCAD had a lot of fun at the State Fair this year.
- St. Catherine University Professor of English Geri Chavis, received the $10,000 Bonnie Jean Kelly and Joan Kelly Faculty Excellence Award. She teaches the practice of using poems, stories and creative writing to promote healing.
- On August 22, the College of Saint Benedict became the first college in Minnesota and the ninth in the nation to implement a water bottle policy that prohibits the sale or purchase of plain, plastic water bottles on campus.
- Saint John’s Abbey and University announced on Sept. 15 the historic completion of The Saint John’s Bible, the only handwritten and illuminated Bible commissioned by a Benedictine monastery since the advent of the printing press more than 500 years ago.
- St. Olaf College Professor of German LaVern Rippley and his wife, Barbara, a 29-year member of the library staff, are making a $2 million gift to the college that will be doubled by matching funds. The resulting scholarships will help students pay for international study.
Briefs
- A new expert list for media professionals on the topic of K-12 education was released in August. Other recently updated expert lists cover business, politics and the environment.
- The latest "Student Migration Report" from the Minnesota Private College Research Foundation shows that our state continues to be a "net exporter" of college students. In 2010-11, 10,649 high school graduates from other states attended college in Minnesota, while 14,495 Minnesota students went to college out of state.
- Sally Wherry of the Center for Postsecondary Success at the Minnesota Department of Education, is featured on the LearnmoreMN blog this month. Read her post, "Middle Schools: Strengthening the Connection," and consider joining the conversation by adding your comment. Lesley Lydell from the Minnesota Office of Higher Education will be blogging in October.
- The 2011-12 Transfer Guide is a resource for counselors and students, with campus-specific information about our 17 colleges and universities and their transfer requirements.
- Join American RadioWorks' Stephen Smith and a panel of higher ed experts as they tackle questions inspired by the recent public radio documentary series "Tomorrow's College." The event, "What Skills Do Today's Graduates Need?" will be at Minnesota Pubic Radio on Oct. 4 at 7 p.m.
