Colleges, state must keep tuition affordable

David B. Laird, Jr.

Published Wednesday, April 4, 2007

For anyone alarmed about the high cost of higher education, consider this: The best way for the state to make a difference is to focus on improving how it helps one in four college students who receive Minnesota’s need-based aid.

As tuitions and fees rise, institutions are putting more money into grants to help low- and moderate-income students afford to pursue post-high school education.

In Minnesota, institutional aid from both public and private colleges and universities has grown rapidly in recent years, to now account for one-fifth of undergraduates’ financial aid. The value of these awards exceeds $350 million.

What our colleges and universities are contributing, however, cannot continue to make up for what the state is failing to do. The state’s need-based aid has been shrinking as a share of undergraduate financing.

In fact, the inflation-adjusted value of the average need-based aid award has fallen 14 percent in the last five years.

Higher education prices challenge students and families who are working hard to get ahead.

It is a good reminder of the reason why Minnesota created need-based aid in the first place: to target state assistance for the low- and middle-income students who need it the most.

While institutions work to both control costs and continue increasing their own awards, we need state government to recommit to do its part.

When it comes to addressing higher education and affordability, there are many policy options. The ones that get the most attention involve supporting organizational budgets, not direct aid to students.

While there can be room for action this session on several fronts, let us start with the investments that we know will have the greatest return.

Need-based aid is certainly such an investment — all of the state spending on it goes directly to students who need it the most.

Legislation has been introduced that would improve our state’s need based aid for college students, through the State Grant Program. Introduced by Sen. Rod Skoe (DFL-Clearwater) and Rep. Joe Atkins (DFL-Inver Grove Heights), their bills would allow thousands more middle-income families to be eligible for the program and help the 71,000 current recipients with increased awards.

Portions of these proposals are incorporated in both Senate and House omnibus higher education bills but at insufficient levels.

For parents, there are many responses to how higher education tuitions and fees continue to increase. For parents of younger children, it is more important than ever to consider the importance of having children continuing their educations past high school — and consider saving money for just that.

For parents of juniors and seniors, do not rule out any options too early, given that scholarships and aid may be available that make the actual cost of attending a particular college more affordable than you at first think. And for parents of college-age students, remember that a college education is an investment that pays dividends for a lifetime.

Meanwhile, state government should respond as well. And it is not just because of the frustrations of current and future college students and their families.

All of us need to think about what is in the best interest of the state. Demographic trends are going to lead to a lower number of high school and college graduates.

At the same time, the economy will require twice as many college-educated employees as it does today. We all stand to lose when the demand for future employees fails to keep up with the supply.

State policymakers can act right now to help a greater share of students afford college and continue their educations after high school. Increasing the state’s commitment to need-based aid will do just that.

David B. Laird, Jr., is president of the Minnesota Private College Council. For more information visit www.mnprivatecolleges.org.