Princeton's Room and Board Surges 19%, Tuition Holds Steady

Parents Forum
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<p>I deliberately didn't put this in the thread about how Princeton is not raising tuition. This way, it's clear that other costs are rising steeply.
I got this from a listserv, so don't have the link.</p>

<p>"Princeton won't raise tuition; other costs soar
Room and board surges 19%, lifting Princeton's 2007-2008 overall cost 4.2%.
By Christian Zappone, CNNMoney.com staff writer </p>

<p>NEW YORK (CNNMoney.com) -- Princeton University said it will not raise its tuition for the 2007-2008 school year, holding it steady - at $33,000 - for the first time since 1967.</p>

<p>Room and board costs, however, will jump 19 percent, bringing the total cost to $43,980, a 4.2 percent increase overall.</p>

<p>Total costs at all 4-year institutions grew an average of 5.7 percent in the 2006-2007 school year, to $30,367, according to the College Board. The average bill for room and board increased 5 percent.</p>

<p>"We're aware that rising college costs continue to be a concern," said Cass Cliatt of Princeton. "Addressing this issue through our review of tuition and fees complements the efforts we have made through our generous financial aid program."</p>

<p>Dr. Sandy Baum, senior policy analyst for the non-profit College Board, qualified her praise of the university's decision. "It's terrific that Princeton is doing something to set an example about keeping tuition in check," said Baum. "But they raised their room and board by an unusually high amount."</p>

<p>Baum notes, too, that the majority of Princeton's students live on campus...."</p>

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<p>Their way of raising the cost is really slippery. I don't like it, and the percentage seems outrageously high to me.</p>

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<p>Remember the all in cost is up 4.2%. The interesting factor will be the reaction of its peer group. All in costs at Pton were at the low end going in vs its peer group. Given the demands of soy milk/organic/free range/'natural'/no mystery meatloaf/everything made to order college kids, perhaps some of the cost increase is justified. More important, is the gauntlet laid down to its competitors. Pton transformed college financial aid dropping loans. Will this be equally transforming?</p>

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<p>
[quote]
More important, is the gauntlet laid down to its competitors.

[/quote]
</p>

<p>Gauntlet to do what? Match Princeton's shamelessly disingenuous press release? Is the goal now for elite colleges to come as close as they come to bold faced lying without crossing the line? Is this an example of the value they are teaching our kids?</p>

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<p>Dropping loan doesn't tranform anything. It's simply a merit aid discount that, in the case of Princeton's student body, heavily favors wealthier students.</p>

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<p><a href="http://talk.collegeconfidential.com/showthread.php?t=291348%5B/url%5D"&gt;http://talk.collegeconfidential.com/showthread.php?t=291348&lt;/a&gt;&lt;/p>

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<p>Pton's dropping of student loans was a watershed event. Today 55% of their students are on financial aid. More important, intellectual honesty was enhanced by stopping to call loans "financial aid." Idad, this was a good lesson to teach kids.</p>

<p>The boards are full of stories of schools having to match Pton to be competitive. Price cuts (in the form of financial aid) help not only school a's customers but school b's customers who can negotiate a better deal because of school a.</p>

<p>Don't know why you would want to bash Pton's diversity outreach evidenced by their high financial aid grants.</p>

<p>Yes, when your first years tend to have top 1% SATs, APs and grades you probably tend to get a fair number of the well off. Is that their problem or society's? They have certainly demonstrated outreach at least on a par with any of their peers.</p>

<p>Finally, look at the bottom line at 'all in cost' and we will see how they stack up with their competitors. My bet it will continue to be a low end after the others announce.</p>

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<p>Here's the link:</p>

<p><a href="http://money.cnn.com/2007/01/22/pf/college/college_costs/index.htm?postversion=2007012211%5B/url%5D"&gt;http://money.cnn.com/2007/01/22/pf/college/college_costs/index.htm?postversion=2007012211&lt;/a&gt;&lt;/p>

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<p>I don't see this. Wealthy families will have a high EFC and won't receive aid at all. Lower income and middle class students have EFCs below the cost of attendance and are the ones that get stuck with loans at most schools. Often loans are the first component of "meeting need", and eliminating them is a huge step. (Or, it would be if more colleges would do it.)</p>

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<p>Roger:</p>

<p>Unless Princeton is an outlier, it is safe to assume that at least half of its financial aid students are from families making $80,000+ per year. I would rather see changes to financial aid structures that are more specifically targeted at truly low income students.</p>

<p>Princeton extended its loan-free program to include all students as a measure to attract middle-class and upper-middle class students in the face of competition from merit-discount colleges.</p>

<p>I will agree that reducing loans across the board is still a more progressive-pricing policy than across the board sticker price reductions would be.</p>

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<p>ID I think the hypothetical $80,000 financial aid recipient as less worthy is pretty ridiculous. A police serageant, public hs teacher or single mom nurse might make your $80,000 number but clearly their kid is deserving of substantial aid for a $200,000 after tax 4 year education. Economic diversity is needed and that includes a lot of people in the working middle class.</p>

<p>You prefer to concentrate on the lowest 10% in income but Pton's admission needs conflict. For example, they offer a freshmen integrated science program where the prerequisites are AP Physics with calculus. Trying to find people with 5s on AP physics (assumes BC calculus in junior year) really limits your selection to a few thousand students nationwide (heavily concentrated in the best high schools) that all of the elites are competing for.</p>

<p>Finally, Pton's dropping of ED is quite a statement that diversity trumps everything. No early admission game is directed entirely at the problem of preferences. Not a lot of schools following the lead on that one either.</p>

<p>Hardly the Princeton of the 1900-1965.</p>

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<p>
[quote]
A police serageant, public hs teacher or single mom nurse might make your $80,000 number but clearly their kid is deserving of substantial aid for a $200,000 after tax 4 year education. Economic diversity is needed and that includes a lot of people in the working middle class.

[/quote]
</p>

<p>Right. But, the need-based financial aid extends up to families making $160,000 a year (or more).</p>

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<p>I think if we were able to look at those $160,000 families we might see that number in a better context. The families at the top tier of income that do receive aid from P appear to me to be those with unusual expenses, multiple college age children to support, etc. We have four kids to put through college and you can bet that Princeton's generous no-loan policy was a big factor in our decision among schools of this caliber. We didn't get much, but it was better than the offers from other schools and helps lower our overall laon amount needed to fund sixteen years of college over the next eight years. It seems that the reality is, like it or not, that Princeton's families' gross income is probably higher than many other schools, so their upper-end cutoff for aid is probably also higher.</p>

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<p>princeton is causing inflation by doing this. i mean, the tuition has doubled 100%...</p>

<p>w/e, people on finaid aren't bothered...</p>

<p>in any case, what's another $2k... not much ca$h if you got it ;)</p>

<p>the good thing is that princeton will never have a class full of 100% finaid people. they just WOULDN'T.</p>

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<p>Cost of college rises with GDP not normal inflation rate. Princeton is not causing inflation, you should take an econ class and blame the price of your college education on America being so sucessful.</p>

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<p>concur with i-dad.</p>

<p>Those in the $100k-$135k income range (top ~8% nationally), also qualify for finaid from many private colleges WITHOUT extenuating circumstances. But, with P'ton dropping loans, it works out to a defactor discount for these individuals. Otherwise, self-help loans would be the first part of the finaid package.</p>

<p>wsox; we'll have to agree to disagree. P'ton's dropping ED was nothing more than a brilliant marketing ploy -- which worked since the NYT loves them even more. If P wanted more diversity all they have to do is start recruting in South Central LA (a la 'SC) and other low income 'hoods, and/or reduce the ED acceptances to less than 25%, to leave more slots in the RD pool.</p>

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<p>from today's Inside Higher Ed:</p>

<p>"And while experts on higher education have been reluctant to criticize Princeton’s move, a number make the point that its decision — popular with students and generating lots of good press — will most help the wealthiest families."</p>

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<p>That is outright dumb. Pton's financial aid has risen from approximately 30% (pre policy change) of its class to 55% for the most recent class. The bulk of the dollars go to need. Awards average $30,000 but there is a lot of variation from a few thousand to $45,000. Yes, someone with a $130,000 income could get a grant but the the formula used (see their web site) is pretty standard and grants the bigger bucks to those in most need. Simply put, look at the bell curve, not a small amount on the tail. </p>

<p>The proof of the pudding is in the numbers. For example you talk about SC's effort for outreach for African Americans (at least I think that is what you are referring to). Pton has 9+% African American in recently admitted classes which is something SC should shoot for. Again, consistently Pton has shaped its policies to increase diversity. You should be ashamed of defending ED (albeit at a lower rate) when the Early Admission Game was a great tool of 'the rich' to get into the Pton, Swat and SC. Pton put an end to that!</p>

<p>A lot of people on the board have issues with Pton. Read the Chosen and their history included a lot of ugly things. But their actions recently indicate a true leader.</p>

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<p>wsox:</p>

<p>I neither defend ED nor oppose ED; admissions gurus are well informed professionals and will do what they feel best for their institution. As an admissions policy, ED is neither inherently good nor bad -- how it is used makes can make a difference. (I'd sure wish someone would update the Early Admissions Game since the data is now rather old, and as you have pointed out, admissions policies have changed over the past decade.) </p>

<p>But, I'd be happy to be educated on the the bell curve of P'ton student body, i.e., the % of students per income bracket if you could provide the data. </p>

<p>However, according to P'ton's office of finaid, students whose family incomes are in excess of $200k are receiving grants of ~$12k; incomes of $140-$160k receive grants of $16k, covering 40% of total costs.</p>

<p>fwiw: my reference to USC was economic diversity (the 'unadvantaged'), since USC leads the nation in Pell Grantees for top private schools.</p>

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<p>so financial aid doesn't cover room and board does it?</p>

<p>this would be a shrewd way for princeton to keep more money</p>