National Association for College Admission Counseling Rang The Alarm, But Is Anyone Listening

National Association for College Admission Counseling commissioned a report in which the researchers outlined that with the national economy in despair, as well as, college costs continuously rising, prospective students and families will undoubtedly be forced to make critical decisions with their financial well-being in mind that will have generational ramifications. The report stated, “While almost all colleges and universities continue to admit students regardless of their socio-economic status, less than one-third of all colleges are able to offer financial aid packages that meet the full” (Heller, 2008).

The report also reassessed ways in which colleges and universities may have used the admission processes unfairly in their review of financial need as well as financial aid.  The report further stated:

While the concept of need-blind admission was developed to ensure that students were not rejected due to financial need, admission practices that utilize differential financial aid targeting have emerged recently as colleges grapple with difficult aid allocation decisions,” noted William McClintick, NACAC President. “While such practices are, in many cases, well-intentioned, they provoke questions from stakeholders concerned about access for low-income students, fairness in college pricing, rising college costs, and the use of institutional aid”
(Heller, 2008). 


Problem:  In addition to the previously mention findings, the report also stated that colleges continued to increase the amount of merit aid provided to students at the expense of need-based aid.  In the chart below the shift from need-based support is further demonstrated:

Academic Year	Merit-Based	Need-Based
1994	27%	66%
2007	43%	49%
	+16%	-17%

Solution:  Changes in state funding, tuition costs and financial aid policy have made postsecondary access and affordability a growing problem for many American—regardless of color, background or religion.  As sate and federal support for financial aid continues to not be in line with tuition increases; therefore, the following practical solutions are offered for consideration (see www.solutionsforourfuture.org).

•   Since college tuitions have increased on average by 76 percent at public four-year institutions over the last decade. Private four-year institutions have seen an average increase of 62 percent. 

Federal and state lawmakers should institute a cap on enrollment increases.

•   While the average cost of college tuition has risen more than 65% over the past decade, median family income has risen by only 5 percent. 


Federal and state lawmakers should evaluate ways by which college students can receive a greater benefit rather continually enforcing a decrease of such.

•   The purchasing power of a Pell Grant, the largest need-based financial aid program in the country, continues to decrease, as the maximum available grant amount has remained constant for the last five years. 


Rather than cut or eliminate Pell grant funding, lawmakers should consider a hybrid approach that would afford a better return on the public’s investment in the education of individuals--such need and merit based proposals are currently under consideration by many states.

•   In addition, higher education is highly labor intensive and it is commonplace for colleges and universities to spend 60 percent or more of their budgets on human resources. In many cases, colleges and universities compete with the private sector to hire outstanding individuals such as engineers, computer scientists, biologists, doctors and lawyers for faculty positions. Despite these pressures, colleges and universities are taking a wide range of steps to reduce costs and ease the upward pressure on tuition, including reducing course offerings, eliminating departments, and adopting pay and hiring freezes.

Rather force institutions to be in proximity to one another to be in competition to one another, there should be a model by which there is a regional approach to education and those regions offer a specialized approach to outlined/defined areas of education.

References:  

National Association for College Admission Counseling. www.nacacnet.org.

Heller, D.E. 2008. Need-Blind College Admission Still Prevalent, But Enrollment

Strategies Increasingly Utilize Merit Aid Targeting Amid Tightening Economy, RisingCosts. http://www.nacacnet.org/AboutNACAC/PressRoom/2008PressReleases/Pages/finaidpaper.aspx

The Center for College Affordability and Productivity. 2010. 25 Ways to Reduce the Cost of College. Retrieved from: http://www.statebudgetsolutions.org/publications/detail/25-ways-to-reduce-the-cost-of-college

Soutions For Our Future.  Retreived from: http://www.solutionsforourfuture.org/rising_prices.htm