CAPE GIRARDEAU, Mo., Sept. 15, 2006 – Just as Missouri received a failing grade for affordability of higher education last week from the National Center for Public Policy and Higher Education, Southeast Missouri State University announced a new Tuition Guarantee Program for Missouri students who enroll for the fall 2007 semester.
Under the new program approved by the Southeast Board of Regents Sept. 1, the University guarantees that incidental fees for all Missouri resident undergraduate students enrolled in fall 2007 will not rise more than $400 per year for a typical academic year load of 30 credit hours through spring 2011.
That's music to the ears of many Southeast students.
Candice Hoffman, a Southeast freshman from Cape Girardeau and a May graduate of Notre Dame Regional High School, said she dropped two classes from her 18-credit hour schedule due to cost considerations just before the start of the fall semester. Although she has three grants, including the Pell Grant and the Kiwanis Scholarship, and works two off-campus jobs, Hoffman said she still feared covering the remaining costs of an 18-credit-hour load.
The Tuition Guarantee Program is a welcome relief, she said, "because then I will know if I need to work more during the summer or apply for more scholarships."
Emily Westerholt, a Southeast freshman from St. Louis, agreed.
"I think it's good because I have to pay for all of my college on my own," she said.
Westerholt said her parents agreed to pay for and send her to a private St. Louis high school. In return, she is responsible for her college costs.
"I'm on my own for a lot of stuff," she said, adding she works at Olive Garden and has student loans to help cover the costs of her college education.
Emily Scherer of Barnhart, Mo., said she likes the tuition guarantee program.
"It is reassuring to know it might go up" as much as $400, but it also might not be quite that much," she said.
Kenneth W. Dobbins, president of Southeast Missouri State University, says Southeast will strive toward an annual increase that is less than $400.
"That was the case in six of the last eight years,” he said.
Dobbins noted that fee increases at Southeast did exceed $400 in two of the last eight years, due primarily to unprecedented reductions in state appropriations. However, under the tuition guarantee program, increases above $400 per year would not take place, he said.
The plan is designed to address concerns by students and parents that it is difficult to budget for higher education costs due to the possibility of extreme fluctuations in tuition.
"It makes it easier to plan with your scholarships what you are going to need before you ever get out of high school," said Darris Gerlach, a freshman from Cape Girardeau.
While Rachel Niehoff, a junior from St. Peters, Mo., says she wishes Southeast would have offered the tuition guarantee program earlier, Yvonne Rooks, a senior from St. Louis said, "I think any opportunity the University gives us to save money is a benefit. It's definitely beneficial to students and parents. Just knowing ahead of time the exact amount you will need" is going to be helpful.
"My dad likes the idea," said Rachel Schutte, a freshman from Imperial, Mo.
Added Drew Federko, a graduate of DeSmet High School and a Southeast freshman from West St. Louis County, "My parents will obviously be happy."
Net college costs – tuition plus room and board after financial aid -- for low- and middle-income students to attend public four-year colleges and universities in Missouri is now 46 percent of their family's annual income. Sixty-five percent of college students in Missouri are enrolling in public two- and four-year colleges and universities.
These are among the major finding of "Measuring Up 2006: The National Report Card on Higher Education" released last week by the independent, nonpartisan National Center for Public Policy and Higher Education based in San Jose, Calif., and Washington, D.C.
According to the report, Missouri's investment in need-based financial aid is very low when compared with top-performing states, and Missouri does not offer low-priced college opportunities. Missouri undergraduate students borrowed an average of $3,405 in 2005. Over the past several years, the share of family income, even after financial aid, needed to pay for college expenses at public four-year institutions has increased from 24 to 31 percent.
In Southeast's current fiscal 2007 budget, student fees account for 47.3 percent of the University's operating budget. Southeast's state appropriation accounts for 50.1 percent of the total operating budget. Kathy Mangels, vice president for business and finance, noted that while the University's state appropriation accounts for half of the University's operating budget, student fees are increasingly close to covering the same percentage.
Missouri is not alone in its failing grade for affordability. Forty-three other states also received an "F" in this category in the "Measuring Up" report, a number which has grown from 36 states in 2004.
According to the report, Missouri’s colleges and universities have become less affordable for students and their families since the early 1990s. The national report card graded each state on six areas of performance – affordability, preparation, participation, completion, benefits and learning.
With Southeast's new Tuition Guarantee Program, when a student enrolls at Southeast, it will now be possible to calculate the maximum cost of incidental fees (tuition) that will be required for a student to pay for courses over the next four years.
"This will help families plan for students' education expenses without the threat of unanticipated costs," Dobbins said.
Dobbins said the commitment is simple and straightforward. There is nothing to sign and the promise is extended to all Missouri undergraduates, freshmen through seniors, who enroll at Southeast beginning in fall 2007 and continuing through spring 2011.
While Southeast has historically held fee increases to relatively low levels, all Missouri public universities raised tuition from 2002 to 2004 by amounts that were larger than usual to compensate in part for reductions in state appropriations for higher education. Because of these increases, the cost of education at Southeast was higher than students and their families had planned when students first enrolled, Dobbins said.
"Southeast is very affordable when compared nationally and within Missouri," Dobbins said.
Southeast's per credit hour rate this year for Missouri undergraduate students is $167.80. Southeast's fees still remain lower than almost every comparable University in this region. Southeast's incidental fees for fiscal 2007 are less than the University of Missouri-Columbia's rate of $227.30 per credit hour, Missouri State University's rate of $173 per credit hour, Southern Illinois University-Carbondale's rate of $193.60 per credit hour and Truman State University's rate of $234.17 per credit hour.
Southeast's textbook rental plan also typically saves its students $600 a year or more compared to the cost of buying books at most institutions.
"Our commitment is to continue keeping Southeast Missouri State University affordable without sacrificing quality," Dobbins said.
The Southeast Tuition Guarantee Plan is not a tuition stabilization plan whereby students pay an increased tuition rate for a fixed period of time – normally four years, he said. Those plans historically require an enormous premium (about 20 percent more than the current tuition rate) with the understanding that the rate will be valid for four years. If the premium is not sufficient to satisfy revenue needs, the next incoming freshmen would have a significant increase to bear the additional costs, he said.
Dobbins said such stabilization plans can lead to future students being unfairly charged a disproportionate percent of a tuition increase. Additionally, the significant surcharge may preclude many students with high financial need to be left out of the plan since they may not be able to afford the additional premium.
In comparison, the Southeast Tuition Guarantee Plan is simple, straightforward and applies to all students without substantial surcharges. Each year the 28-member Budget Review Committee will review all revenues, expenses and proposed mission enhancements to balance the next year’s budget and recommend an increase in tuition. The Southeast program guarantees that the tuition increase will not exceed $400 per year through Spring 2011. Hopefully, the increase will be less than $400 since, historically, even with unprecedented state appropriation reductions in 2002-2004, the average tuition increase over the past eight years was approximately $270 per year.
"This plan allows students – both those who are in college along with high school students who are planning to attend college in the next four years -- to plan financially for their educational future," Dobbins said.