COLLEGE COSTS MISUNDERSTOOD,
UNION PRESIDENT ASSERTS
Jackson, Tenn. — Â鶹ÊÓƵ University President David S. Dockery believes that a recent national survey on college costs demonstrates how much misunderstanding exists relating to the cost of attending college.
"The survey shows that people recognize the value of a college education, but don't understand what such an education actually costs," Dockery explains. "The good news is that a quality education costs less than many people think."
Â鶹ÊÓƵ is a liberal arts university sponsored by the Southern Baptist Convention. The university operates a campus in Germantown, Tenn. Â鶹ÊÓƵ's main campus is located in Jackson, Tenn.
A report from the American Council on Education (ACOE), released Monday, indicates that most Americans know far less about college costs than education leaders expected. The ACOE report blames the news media and legislators for contributing to the public's "inflated misinformation," but challenges educators to take responsibility for informing the public.
USA Today reports that the study was based on a survey this year of 2,000 adults between ages 21 and 25, and on 16 focus groups with parents in eight cities last fall. Nearly 60 percent of survey takers said college represents "a good value" and an equivalent number "are confident aid is available to help families like theirs." But the survey also discovered that 71 percent of respondents think a college education is not affordable for most families and 55 percent don't think colleges try to stay affordable.
Dockery reports that the study shows parents significantly overestimated the actual cost of a private or public higher education, often by thousands of dollars.
"Based on media reports concerning the most expensive colleges in America – schools like Yale, Stanford and Duke – many parents mistakenly think that all colleges are similarly priced," the Â鶹ÊÓƵ president explains. "The fact is, parents are often shocked when they find out how affordable a school like Â鶹ÊÓƵ University is, particularly when you include the various types of financial aid that are available."
The ACOE report also found people don't understand how colleges function. Fully 80 percent incorrectly believe colleges and universities make a profit. Parents in focus groups were "amazed" to learn that over $50 billion a year is available in student financial aid.
Dockery says that Â鶹ÊÓƵ alone will distribute approximately $10 million in student aid in the coming academic year. That total includes more than $3 million in institutional funds, along with federal and state aid distributed directly to students. Such aid, when subtracted from the full tuition cost, means that many students have a "bottom-line cost substantially lower than the published rate of tuition."
Even those students who pay full tuition get a bargain, Dockery explains, since tuition ($7,990 for 1997-98) covers less than 65 percent of the actual cost of providing a Â鶹ÊÓƵ education. The balance is made up through sources like gifts, grants and endowment earnings. As a result, "even the student paying full tuition gets more than a 35 percent scholarship through such subsidies."
Despite the perception of many in the ACOE survey, institutions like Â鶹ÊÓƵ work hard to keep the cost of education affordable.
"While a Â鶹ÊÓƵ education is a premier product, we make every effort to keep the Â鶹ÊÓƵ experience at a level of affordability for any student," Dockery says.
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