Families are facing rapidly escalating college costs, are reaching across all funding sources to meet additional college costs, and are very worried about future tuition increases, according to a report just released by Sallie Mae and Gallup. After interviewing over 1,600 undergraduates and parents of undergraduates, the Sallie Mae and Gallup study uncovered some very sobering findings:

·         Nearly half (49%) [of parents surveyed] are extremely worried this year that schools will increase tuition compared to less than one-third of parents two years ago.

·         One-third of parents are extremely worried that their income will decrease due to job loss, up from 23 percent last year.

·         Only 10 percent of parents were extremely worried two years ago that their child wouldn't be able to find a job, but that has risen to 27 percent this year.

·         More families reported eliminating schools during the college selection process based on cost after receiving their financial aid packages (40% this year compared to 36% last year and 34% two years ago).

·         63 percent of families report eliminating colleges because of financial considerations at some point in the application process, compared to 56 percent in 2009 and 58 percent in 2008.

Jeff Papa

Remember calling home (usually on Sundays) from the hall phone in your college dorm? Wait, you have to be of "a certain age" to remember that--and I do!  Well, times are changing--and fast. Check this out: "The University of Virginia has removed about 3,850 land-line telephones from residence halls in a move that will save $500,000 annually." The good news is that colleges are finding new and innovative ways to save money; the not-so-good news is that I'm feeling older and older by the minute.

Jeff Papa

In this challenging economic time, Scannell and Kurz offer ten very helpful financial aid strategies that will help you prepare for 2010:

1.     Identify metrics that reveal how you're performing, then track them against the same or a similar period in the prior two years.

2.     Benchmark annually on sticker price, discount rate, and prestige indicators with top competitors.

3.     Help admissions recruiters make the case for affordability, value, and career outcomes.

4.     Make sure financial aid counselors can talk comfortably and accurately about financing/payment plan options as well as financial aid programs.

5.     Keep admissions and financial aid staffs on the same page by using net tuition revenue goals as the common denominator.

6.     Use an analytical, not anecdotal, approach to adjusting aid policies.

7.     Be as transparent as possible about awarding policies.

8.     Watch out for policies that stack merit awards on entitlements, need-based aid, talent-based aid, etc.

9.     Make sure renewal policies are not negatively impacting retention.

10.  Be transfer friendly.

-Jeff Papa

A few days ago, I posted a blog asking the following question: "What do the following 13 careers have in common?

1.     Federal-government manager

2.     Higher-education administrator

3.     Program evaluator

4.     Corporate executive specializing in global business development or managing global workforces

5.     Cognitive-behavioral therapist

6.     Immigration expert

7.     Researcher with expertise in two or more of these subjects: physics, math, molecular biology, engineering and computer science

8.     Health-informatics specialist

9.     Optometrist

10.  Genetic counselor

11.  Patient advocate

12.  Physical therapist

13.  Veterinarian

Well it's time for the big reveal~! Drum roll, please. J These 13 careers, according to Kiplinger.com, promise income growth, work-life balance and social impact over the next decade. And look, those of you in higher-ed administration actually made the list! Yes!

-Jeff Papa

Here's a classic "good news, bad news situation" for you to think about on this Sunday afternoon. Let's start with the good news: undergraduate enrollment at private colleges and universities, according to a new Moody's survey, is up by almost 1 percent, and freshman applications at private schools rose by 4.3 percent, compared to last year.  Sounds good, right? Ok, now for the bad news: Moody's also reported that nearly 30 percent of private colleges are expecting a decline in net revenue from tuition and fees in the 2010 fiscal year. The big reason, Moody's said, is a rise in discounts and financial aid as a result of the economic downturn. That's the real struggle so many private schools are dealing with: how do we maintain enrollment while not giving away more net tuition revenue???

-Jeff Papa

According to College Graduates Hit Hard During Recession, unemployment data for college grads is a classic "good news, bad news" situation. Or, as I like to call it, a "good news, less than good news" situation. What do you want first? Let's start with the good news.....the unemployment rate among college graduates is notably lower (4.9%) than high school graduates who did not attend college (10.8%). Now for the "less than good news," the number of unemployed jobseekers is growing fastest among Americans with higher education; in fact, the number of unemployed college graduates surpassed 2.2 million, an increase of 136% since December 2007. Considering that many of us are actively searching for specific outcome data, as a distinguishing institutional characteristic, we need to closely monitor unemployment rates and understand how that information directly impacts our ability to communicate our successes to key external audiences.

-Jeff Papa

Living through the worst economic crisis since the great depression has caused nearly all of us to stop, at least for a moment, and ask ourselves some tough questions: what do we really need to survive and what can we live without? Well, private colleges are no exception; they have asked themselves the same tough questions and their collective response led to a rather interesting conclusion: the smallest average increase in tuition and fees in 37 years, according to a survey conducted by NAICU. Can there be a positive outcome from all this belt tightening? I think so, because in the final analysis, we all will be forced--personally and "on a college-level"--to determine what's really important to us and our institutions and to identify what we really need and what we simply cannot live without. Is that really a bad thing?

-Jeff Papa

Did you see the ABC News article that indicated that some students are buckling down and completing their 4-year degree in only 3 years? From a student's perspective that's one, smart way of dealing with this economic crisis--get it done and move on. But from an enrollment management perspective, y'all may be saying, "I thought we already had enrollment and retention challenges, now this---what's next?" I say it's time to seize the moment, "put on our strategic thinking hats," and consider developing several new pedagogical models that will actually allow today's students to complete their degree in less time. You know--turning lemons into lemonade. I know this is crazy talk--but someone has to do it.

-Jeff Papa

I can't tell you the number of schools that have contacted me recently to discuss their pricing strategy and the price elasticity of their school. In the wake of the economic downturn, we all are wondering if our schools are priced appropriately and competitively. School after school is struggling with some very tough questions: What's the maximum we can charge without negatively impacting our enrollment? How does demand for our institution change as the price changes? What is the relationship between total cost (tuition, fees, and housing) and perceptions of quality?

If you are asking the same questions of your institution, you are not alone. But, as you can image, the answers to these questions are different for each school. Although many colleges and universities look alike, they are not. And to really answer these questions in an informed and thoughtful way, you need to study your unique market position and institutional differentiators. One thing I know for sure: many of us have not looked at our pricing structure in a long time--if at all. Perhaps that's one positive outcome of our current economic climate.

-Jeff Papa