CollegeBoard

C. Peter Magrath, President
National Association of State Universities and Land-Grant Colleges

David Ward, President
American Council on Education

David L. Warren, President
National Association of Independent Colleges and Universities

C. Peter Magrath, President

National Association of State Universities and Land-Grant Colleges
"The fact that the average public university student receives $2,400 in grant aid is due to the increased resources that our institutions have committed to student financial aid, as well as to the large amounts of aid provided by the federal and state governments and outside donors. Many of our institutions are devoting more of their resources to the financial-aid packages of low-income students."

"The average public four-year tuition of less than $4,700 will continue to allow the broad access to higher education that our students and society need. The $105 billion in financial aid provided from all sources is a wise investment in our future that must be maintained and strengthened. This includes the federal Pell Grant program, which now covers, on average, less than 30 percent of the average total charges at public colleges. State colleges and universities educate the majority of the students enrolled in four-year institutions."

David Ward, President

American Council on Education
"There is no denying the bad news released by the College Board today — college prices, particularly at public institutions, have increased sharply over the past year. These increases are due to a complex array of factors, which combine dramatic cuts in state appropriations, level-funding in most federal student aid programs, a recent marked decline in endowment earnings, and a corresponding challenge in obtaining alumni and corporate gifts. But percentage increases in tuition do not tell the entire story on affordability, and there is some good news contained in the report — for example, the net price after grant aid at four-year public universities was $1,700 last year. In addition, total student aid was about $105 billion — a record amount."

"However, we are in the middle of a very difficult period in financing higher education, and I remain greatly concerned about the long-term viability of the social compact that has served students and families so well for more than 50 years. Until we publicly debate the cost-shifting that is occurring in many states, no amount of effort by our institutions to raise revenue and cut expenses will be able to preserve low-tuition formulas, particularly at our public colleges and universities."

David L. Warren, President

National Association of Independent Colleges and Universities
"Private college and university presidents understand the apprehension that annual increases in tuition sticker price create in students and families. Our colleges have responded by increasing institutionally provided aid by more than twice as much as tuition in the past year (15 percent vs. 6 percent) — as well as over the last decade (197 percent vs. 86 percent). For the vast majority of students at private colleges and universities, annual increases in their out-of-pocket costs trail tuition increases because of faster growth in institutionally provided aid."

"This year, despite several years of poor endowment and fund-raising returns, sharp increases in family financial need, and costs that have long increased faster than the Consumer Price Index, private colleges kept the average increase for 2003-04 at 6 percent. This is only half a point higher than the 5.5 percent average for the last 10 years, and significantly lower than the double-digit increases that were common during the last economic downturn."

"The first priority of private colleges and universities is continuing to bolster oversight of costs and enhance operating efficiency, while maintaining educational quality and access for students from all backgrounds. In recent years, entrepreneurial presidents have targeted reductions in costs, increased outsourcing, and expanded collaborative efforts with other institutions to achieve savings and make wiser use of college resources. The competitive higher education market, and the importance families place on the value of their college investment ensure that college presidents will stay committed to a quality education that is accessible to students from all backgrounds, at the lowest possible net price."