Application count and Yield

Colleges and Universities A-Z University of Michigan
21

<p>Funding as a ratio of operating budget is only part of it. At this point in time, Michigan receives under $300 million from the state, yet the cost of operations is close to $3 billion (not including the Michigan hospitals and research spending). From a conceptual point of view, one can easily ask why do residents make up 60% of the undergraduate student body when the state only provides 10% of the cost of operation. From a purely financial point of view, Michigan has 16,000 residents enjoying a $27,500 subsidy in tuition. If one where to simply multiply the two, the total subsidy provided to residents of the state would equal $450 million. Somewhere, somehow, the state and its residents are taking $150 million worth of tuition from the University that OOS/international students would actually be paying for. This huge financial windfall (for residents, not the university) ultimately hurts the University, the students and the state. </p>

<p>The other part of it is demographic. It is a misconception that residents are worse off these days. Michigan is not admitting OOS and international students at the expense of Michigan residents. It never has. The number of Michigan resident applicants has remained steady at 10,000 since I was at Michigan over 20 years ago, and the number of Michigan residents admitted into and enrolled at Michigan has also remained steady. The standards of admission have gone up substantially in recent years, but so has the quality of the applicants. But in terms of the number of residents who apply and are admitted, nothing has changed. The only thing that has changed is the number of OOS and international applicants. This is where the growth in the applicant pool, and in the number of admitted and enrolled students has increased. </p>

22

<p>I’d rather Michigan have more out-of-state and international student. It needs to have a larger national and global presence. Out-of-state kids are willing to pay the extra $$$ to go to UMich than their own state univeristy. International students get the worst deal because they don’t even get financial aid. Add that to the fact that many especially those from Asian countries travel half the world and enter a different cultural atmosphere to be join part of the Michigan life and education. </p>

<p>If you want to Michigan to be a regional institution, then go to MSU or Eastern Michigan. </p>

23

<p>ForeverAlone, I think Michigan’s national and international presence is perfectly fine. But financially, it makes much better sense for the university to admit fewer in-state students, more OOS and international students, and with the added revenues from tuition, provide need-blind financial aid to all students.</p>

24

<p>UMich has been going in that direction already. I think the current balance of in-state and oos is fine although the number of HS graduates in Michigan is expected to go down in future years. The international student population will continue to grow.</p>

25

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The Victors for Michigan Campaign goal of raising $1B for student scholarship should help.</p>

26

<p>“The Victors for Michigan Campaign goal of raising $1B for student scholarship should help.”</p>

<p>Keep in mind: 1) the school has raised nearly $1B historically which has grown to $1.7Bn; 2) the $1B mentioned above is incremental to the $1.7Bn…so if they hit their target the total will be $2.7Bn specifically tagged for aid (ex ante investment returns); 3) at the usual spend rate of roughly 4.5% this will be roughly $120MM/year for aid;</p>