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If Not the NBP, Then What?

As I wrote in a post yesterday, it is standard practice for both public and private colleges and universities to use tuition revenue to provide financial aid. The typical challenge for public institutions is that they don't generate nearly as much revenue as private institutions, and thus don't have as much to contribute to aid. Among public institutions, the other significant challenge to ensuring affordability is convincing administrators to focus aid on financial need, rather than academic merit. One of the strong points of Chancellor Martin's arguments for the NBP is that UW-Madison ought to be able to use tuition to support need-based aid, if it so chooses. It has chosen to do so recently, under the Madison Initiative for Undergraduates. I base that last statement on the clear upward trajectory of resources for institutional need-based aid (what she says is a 226% increase), shown in a graph provided by the director of financial aid, Susan Fischer, at a recent mee...

UW-Madison's Average Family Income is $90,000?

Based on the tweets from today's student conversation with Chancellor Martin, there's a big myth running around campus: No, the average family income of UW-Madison students isn't $90,000. That number came from reports like these that were discontinued back in 2008. Why were they discontinued? Because the data they are based on is a train wreck. The information comes from students' self-reporting of their parents' income when they were in high school (reporting is done on the ACT questionnaire) and according to UW-Madison's office of academic planning and analysis 30% of UW-Madison students left the question blank (and that percent has been rising over time). Is it a high estimate? A low one? Well, what we know is that a study done by two La Follette professors using Census blocks to estimate income (better than student self-report most likely) finds that family income at UW-Madison for Wisconsin residents isn't very out-of-whack with Wisconsin family in...

The Power of the Line Item Veto

Check it out-- what the NBP looks like after Governor Walker exercises his line-item veto . How bad is it? Here's the remaining role of the faculty: "The faculty, subject to the responsibilities and powers of the board and the chancellor, shall participate in academic and educational activities." Period. The students? "shall be participants in the university." Is this the University of Wisconsin-Madison of YOUR dreams? UPDATE: Apparently Chancellor Martin is " not worried the Governor will line item veto his own bill ." Ok then, Scott Walker-- a man to be trusted. Hm....

Trends at the University of Virginia

I've been getting a lot of questions about what's happened at other states and other institutions. Trying to balance my "regular" work with this blog is tough, but here's a bit of info to keep the conversation going. University of Virginia (1) The proportion of students applying for financial aid and having demonstrable need is appalling low-- just 25%--and it has declined substantially over time (it was 38% in 2002). This despite a general increase in awareness of aid, more help filling out the FAFSA, and "Access UVA." The failure of needy students to apply to expensive institutions and to apply for financial aid after they enroll is one reason why financial aid isn't nearly as effective as it could be at promoting college attainment among low-income students. Academic preparation is another, but it's not as if that's gotten so much worse over time. The big change-- the sticker price of tuition. (2) Among students in the bottom 25% of t...

Response to Students for NBP

I applaud Jon Alfuth of the Students for the New Badger Partnership for attempting to do something the UW-Madison Administration has not bothered to do -- share some models of affordability under the NBP . Jon asked me for my critique, so here are some big picture questions to ponder while I try and secure the numbers required for an alternative model (don't hold your breath, this requires figures beyond what Jon seems to have here and I don't see a UW source willing to provide them): (1) Why assume that tuition will increase at the same rate for resident and non-resident students? That seems very unlikely-- typically rates for nonresidents increase at twice the rate for residents (Don Hossler, 2005, "Students and Families as Revenue, p. 116). (2) Why assume the % of non-residents remains the same? Assuming the differential in tuition grows, this will likely tip the proportion of residents downwards, since the BOT will begin to find nonresidents even more attractive. D...

A Challenge to the UW Board of Regents

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While the last several months have been contentious ones, I think that the road ahead needs to include many more uncomfortable discussions. In particular, we need to have fierce conversations about two key issues that have received insufficient attention in the debate over the New Badger Partnership: (1) The public purpose of our flagship university (2) The way we spend our money Much has been said by UW-Madison administration about the need to compete on a global scale, not only with American universities but with those in Shanghai. We have also heard that the best way for UW-Madison to meet the needs of Wisconsin is for it to be the most competitive it possibly can be. Furthermore, we have been told that such a goal does not exclude other objectives, including the desire to be at least modestly accessible to all of the state's residents. (Just google "Biddy" and NBP and you'll get more than a dozen examples of each of these statements. Or simply get the tran...

The New Badger Partnership is Not About Affordability

According to the Badger Advocates' new television ad promoting the New Badger Partnership, the number one reason this new policy is needed is "To keep tuition affordable and provide more financial aid." This claim is echoed in speeches by Chancellor Martin and her Administration , and maintaining or enhancing affordability is a central goal for the NBP articulated by student advocates . Can the NBP achieved its primary policy objective? Will it? The strong likelihood is no. Here, again, is why. (1) The value of financial aid depends on cost of attendance. The real cost of college attendance for students and families is the "net price " they pay -- that is, the cost of attendance minus financial aid. Since some students do not respond well to loans, many argue that net price is actually the difference between cost of attendance and grant aid. (2) The New Badger Partnership makes statements about the need to "keep tuition affordable" but it says no...