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Most high school seniors and their families have not made final college plans for next fall. But they know this: It's probably going to cost more than they had planned.</p>
<p>Even in good economic times, states and colleges have largely failed to hold tuition increases in line with inflation. Now as the slumping economy forces states to slash spending, students can expect the sharpest increases in years.
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<p>I'm wondering if parent's can now save on room and board at many of the state schools. It seems many don't require that you live on campus. In NYC, some rents have been cut in half in recent months. I know rents have also gone down in many other markets. The saving grace perhaps?</p>
<p>I expect tuition to go up somewhere between 10 and 15 percent in 2009. I already paid the bills for two schools for the Spring but I suppose that the state could add a surcharge along the way. I would expect that at around 5% due to the current shortfall. I expect that March will bring an additional shortfall of around 5% and that there will be another one before the fall semester. It could also be that the 10 to 15 percent cut will come for the Fall 2009 school year.</p>
<p>Our landlord held the rent flat last year. I suspect that they will do so again this year or maybe even drop the price. I have a friend that's a landlord and he dropped the rent for an elderly couple that have been good tenants.</p>
<p>The situation at the state level is pretty bad in many states and governors are having to make some very tough decisions including cutting K-12. In general, K-12 is a higher priority than state colleges and universities so states cutting K-12 are basically in pretty deep trouble.</p>
<p>Yes, waiting for the increases is a good way to describe it.</p>
<p>Actually I am skeptical about private schools significantly increasing their tuition (haven't read the article).</p>
<p>Given the economy, private institutions are probably already worried about their yields, and price increases would make it even more difficult for students to enroll.</p>
<p>I hope that private schools can hold the line on tuition increases. In the past, my d's school has tried to hold any increase to 7% or less, and have raised it every year. Too bad the grant money doesn't increase with it, though. For me, a 7% increase in retail tuition results in a 16% increase to me. The only saving grace is that she will graduate next year - I don't know how long I can withstand these financial body-blows!</p>
<p>fendrock, I agree with you about private school tuition increases. There were a few schools that felt the pinch last year already when some students were "no shows" at the last minute. Some or all of those seats sat empty, and there was no tuition from those empty seats. 30 no shows at a school with 1500 students is really felt! Frankly, the increases have to slow down at some point. I have been watching and wondering what that point would be over the last 8 years. When there was a 6% increase and tuition was 10k that was a lot different than a 6% increase where tuition is already over 30k.</p>
<p>Fendrock & Northeastmom, I am wondering about private school tuition as well. D#2 is almost done at SLU, (St. Lawrence) but D#3 is applying to 11 private schools. If they are anxious to "fill up all the seats on the plane" what are these FA packages going to look like? That is probably a "Catch 22" situation for the smaller, private schools. Their endowments have taken a hit, but they have to think about their yields as well. D#3 has taken the real laid back approach, so none of these schools are going to think she has fallen madly in love with them & she would enroll no matter what they offered! </p>
<p>Then again, she could always decide to defer a year, if she wanted to. Hmm, maybe her laid back approach will be to her advantage. Maybe the proscrastination & not demonstrating the "falling madly in love" is the way to go in this economic climate!</p>
<p>SLUMOM, it will come down to the packages for us. We will compare because we have to. Endowments have taken a hit, but families have taken a hit in property value, college savings, retirement accounts, and wages too. People are afraid that they can lose their jobs at any time as well. Parents can no longer get loans (HELOC, personal, or even an auto loan). If colleges operate in a bubble and continue to increase tuition at 5-7% annually with blinders on, their schools will be full of rich students only, and perhaps some empty seats will be there in the fall.</p>
<p>I agree with you, Northeastmom, all you have to do is watch the news! So many people are afraid of losing their jobs, their homes & so on. When I opened the 401(K) statement, my reaction was "well it isn't as bad as I thought it would be." I have to correct that figure on the CSS Profile, my H gave me a ballpark figure & he was being optimistic! I am sure that I will not be the only parent correcting that number on the Profile. The Dec. 31st statement just arrived in the mail, long after I did the CSS Profile. </p>
<p>Making a 4 year commitment in this kind of economic climate is rather scary for many families out there. Before even considering enrollment, many people will be asking a lot of questions, like "What happens if I lose my job?" What do you consider "Special Circumstances"? If they don't consider a job loss to be a "Special Circumstance" then don't even let your child enroll at that school!</p>
<p>I have an elderly relative who told me that 40% of her savings are now gone. She was invested in "appropriate investments" for her age (not growth stocks, or all stocks, but a balanced portfolio that was appropriate for a retired older person). She said that she made money when the economy was doing well, but now she lost nearly half of her nest egg. This also had me thinking. We don't get any financial assistance through relatives but there are plenty of families who have enjoyed some grandparent assistance to help pay that efc. An elderly grandparent who was most generous in the past will not necessarily be able to offer that kind of financial help any longer. They will be more worried about how they will keep a roof over their own heads now that they have less money to live from (they don't have income coming in). That is another issue that will indirectly effect college enrollment. </p>
<p>I know of one grandparent with 6 grandchildren. She is far from a rich lady and is working part time at age 75 to support herself. She also rents out part of her home to pay help the bills. She wanted to help each grandchild. She paid each semester for each grandchild's books while they attend/attended college. LOL, no they were not all in college at the same time. She won't be able to do that in this economy. One of her grandchildren does not have a father. The father died as young man. That grandchild went to Syracuse while mom held a job at the post office. There is no way that this young man could attend Syracuse today without a change in his package. He was only able to attend using his FA package because of his grandmother's extra help, and the help of an uncle who does not have children. He graduated from Syracuse. Today that amount of extra family help would not be there. He just could not go there today unless he got a better aid package from that school.</p>
<p>The article is pretty clear that they are talking about state schools and that privates will in general have lower increases than in recent years. It's clear they would lose lots of students with a tuition hike.</p>
<p>This could well be an opportunity for lower cost privates to pick up some students in the states where COA at the state schools is getting close to their cost.</p>
<p>Dartmouth announced yesterday that their endowment is only down 6%. I wonder if many colleges did that well.</p>
<p>Dartmouth is lucky. Some other Ivies' endowments took a much bigger hit. If the Dartmouth endowment is being run by Dartmouth business and finance grads, that says something about the quality of their education :).</p>
<p>Waiting with dread. My son's school (private, btw) has been pretty straightforward. Due to the hit they've taken to their endowment investments, there will be a real imipact on tuition:</p>
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There’s no doubt about it. We’re a tuition dependent institution and if we’re going to have to cover an increased [operating] expense, tuition is going to be the principal means by which we do that
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<p>lderochi, I don't blame you for being worried, but at least where you're son is, the cost has been far less than most east coast private Us (20-30k less)!</p>
<p>Tell that to my wallet :)</p>
<p>Surely not $30K less!</p>
<p>lderochi, no I was preoccupied while I typed that, but 10-20k less, depending upon school.</p>
<p>Believe me, if I were you I'd be biting nails to look at the numbers too. That school is some buy though, when you compare with it with other schools! </p>
<p>I don't have a crystal ball, but I don't see you getting hit by more than 7-8%, because they won't want to risk losing students either, but that is just a guess, and I know that still isn't pocket change.</p>
<p>Remember, to remain attractive, schools may only increase their tuition a few percentage points but really hit your wallet hard on the fees and housing.</p>
<p>We'll see. So it's gotten to the point where I'm hoping for an increase that at least stays in the single digits! Yuck. But yes -- I still think Elon is a good value.</p>
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<blockquote> <p>Making a 4 year commitment in this kind of economic climate is rather scary for many families out there.<<</p> </blockquote>
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<p>So true, slumom (which I keep reading as slum-mom).</p>