CollegeBoard

George R. Boggs, President and CEO
American Association of Community Colleges

Lisa M. Maatz, Director for Public Policy and Government Relations
American Association of University Women

David Ward, President
American Council on Education

Arnold L. Mitchem, President
Council for Opportunity in Education

Antonio R. Flores, President & CEO
Hispanic Association of Colleges and Universities

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

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

George R. Boggs, President and CEO

American Association of Community Colleges
"For students at two-year public institutions, the fall of 2004 marks the third consecutive year of significant increases in tuition and fees. These increases are largely caused by continuing shortages in state and local funding, which comprise 64 percent of total revenues. Simultaneously, enrollments are surging, especially in high-demand, high-cost technical programs such as nursing and information technology. Community colleges already educate more than 60 percent of nurses and other health-care professionals, and a recent survey shows these programs continue to be the fastest growing, in response to a severe national need. Overall, community college enrollments grew by 18 percent over the three recent years for which data are available.

"Community colleges have long tried to create educational opportunity through low tuition costs. However, as college leaders have struggled to maintain educational programs and necessary services, they have been left with no choice but to pass some of their increased costs along to students. Still, tuition represents just 24 percent of community college revenues. At $2,076, the average tuition at public two-year institutions is a sound value and an excellent investment—for individuals and for our nation.

"Public community colleges serve higher percentages of students from low-income families than do other sectors of higher education. For millions of individuals, the availability of need-based financial aid can make the difference between opportunity and a deferred dream of higher education. As the next Congress works to reauthorize the Higher Education Act, it is essential that federal legislators recognize the importance of providing greater levels of need-based student aid. In particular, the Pell Grant maximum should be substantially increased."

Lisa M. Maatz, Director for Public Policy and Government Relations

American Association of University Women
"As we head into the final weeks of the election season, this well-timed report from the College Board should sound a clarion call to members-to-be of the 109th Congress and the president. Next year, as they work to reauthorize the Higher Education Act (HEA), they must improve federal financial aid programs so that the dream of a college education is possible for all students, regardless of their financial status. A college degree is the standard necessary to enter higher-income jobs with room for advancement, benefits, and economic security. However, students should not be required to mortgage their future to obtain that degree. As this report reveals, Pell Grants buy students less than they have in the past. This is bad news for everyone—but especially for female students. Debt disproportionately affects women, as they are more likely to borrow than men and, when they enter the workforce, usually earn less than their male counterparts.

"Adequate funding to address the rising costs of education and considerations that make enough funding available for nontraditional students must be a priority for our elected leaders. A college education should not become something reserved for an elite few who can pay. Ample federal student loans and grants should be available to all students willing to make a commitment to higher education, even if they have to chip away at that dream one class at a time."

David Ward, President

American Council on Education
"Today's news from the College Board on a moderation in tuition prices is a welcome development for students and families around the country. This development is due to a variety of factors, including some increases in state support for higher education, an increase in endowment earnings, and a lot of hard work by campuses to cut costs. When coupled with a record $122 billion available in financial aid, the moderation in tuition will alleviate many anxieties about college access and affordability.

"Still, I remain concerned about the overall financial health of higher education in the United States. Today's good news only masks what I believe are very serious, long-term issues in financing higher education that ultimately threaten the social compact that has served students and families so well for more than 50 years. Until we publicly debate the quiet cost-shifting from state support to tuition that continues in far too many states, no amount of effort by our institutions to raise revenue and cut expenses will be able to preserve affordable tuition formulas, particularly at our public colleges and universities."

Arnold L. Mitchem, President

Council for Opportunity in Education
"The trends that these data reveal for low-income students are alarming: fewer financial aid dollars are concentrated among low-income students, yet tuition is rising faster at the institutions these students overwhelmingly attend—the public two- and four-year institutions. At the same time, the average Pell Grant is falling in real dollars while the maximum award remains unchanged. As cited in the recent annual Indicators report from the Pell Institute for the Study of Opportunity in Higher Education (www.pellinstitute.org), low-income students are still at a disadvantage when it comes to college access and success, and the findings in the College Board report clearly demonstrate that without a renewed commitment to these students, the situation will most likely get worse."

Antonio R. Flores, President & CEO

Hispanic Association of Colleges and Universities
"As we approach the beginning of the 109th Congress and the next presidential term in early 2005, we are reminded of the pressing challenges faced by our nation to strengthen its security and enhance its standing in the global community of nations. These two imperatives depend largely on how well the social and economic health of the country fares in the months and years ahead. The underlying foundation of our national well-being depends more than ever on the success of our colleges and universities to excel in educating the next generations of scientists, professionals, technicians, and leaders from our increasingly diverse population.

"The fastest growing sector of our national population is the Hispanic community. Already contributing one of every three new workers joining our labor force (and projected to account for one of every two new workers by 2025), Hispanics are America's ticket to continued prosperity in the twenty-first century, but only if major new investments are made to reverse their severe underrepresentation in higher education.

"As the average Hispanic family income trails well behind the rest of the nation, greater federal and state investments in need-based student financial aid are essential to increase Hispanic access and success in college. In addition to capacity-building support for Hispanic-Serving Institutions, student assistance is vital to our national interest. We must invest now or we will pay a lot more later."

David L. Warren, President

National Association of Independent Colleges and Universities
"Students and families considering or attending private colleges and universities should remember two things about price and value. First, it is net tuition, not sticker price, that matters. Increases in institutionally provided aid outpaced the rate of growth in tuition by 9 percent to 6 percent in the past year, and by more than double the rate over the last 10 years. Second, the benefits of a private college education are second to none. On average, students are twice as likely to graduate in four years if they attend a private institution. Close interaction with professors in and outside of the classroom, countless opportunities to engage in campus life, and academic training that fosters leadership, creativity, and critical thinking and communication skills give students at private colleges the foundation for a better life and a successful career.

"Private colleges and universities continue to maintain academic quality and access for students from all backgrounds, while working to find new ways to control their costs, run more efficiently, and keep students' out-of-pocket costs as low as possible. Major cost drivers—insurance premiums, energy, periodicals and other educational resources, and information technology—are all increasing faster than the college sticker price. College endowments and fund-raising levels have been flat in recent years, as the stock market and potential donors recover from the recession. Despite the budget difficulties of recent years, private colleges and universities have kept this year's tuition increase stable with the average over the past 10 years."

C. Peter Magrath, President

National Association of State Universities and Land-Grant Colleges
"It is most encouraging that the rate of increase in public universities' tuition has declined this year for the first time since 1999, when national and state economic conditions led many states to begin to cut back appropriations for higher education. It is even more encouraging that, when grants and tax benefits are factored in, this year's $5,132 average for in-state undergraduate tuition and fees actually may mean an average student outlay of about $1,800.

"Of course, students receive varying amounts of aid, and unfortunately too many bright, low-income students still do not enroll in college. Our institutions will remain committed to holding down costs and maximizing the amount of institutional and government assistance available for needy students and their families. As the Education Pays report clearly documents, both students and society benefit greatly from postsecondary education.

"One of that report's most important conclusions is that the greater income earned by college graduates typically allows them to recoup the cost of full tuition and fees, as well as the earnings they forgo during college, in a relatively short period of time. And the public reaps significant returns on investment in higher education because graduates typically pay more taxes and are far less likely to draw on government-financed, social safety-net programs than are nongraduates. Moreover, college graduates typically are more involved in civic affairs, such as doing volunteer work and voting, than other individuals."