How many times have you and your family agonized over the rising costs of attending a top-notch institute of higher education on a weekend at home you thought was to provide rest and relaxation? Coming from a family where my mother has worked seemingly endless overtime just to offset the astronomical cost of textbooks that better fit in the pamphlet category, I know this gripe too well. As I approach my exit interview, or "day of reckoning" as some would agree is a more accurate title, I cringe at the thought of how many years and paychecks will pass to finally end my collegiate indebtedness. Last year, stories floated around the newsgroup rpi.general that some alums would see almost a decade of work go toward paying for their four-year stint in Troy. While I am confident my own employment opportunities will make the term of my repayment more palpable than 10 years, I weep for those who have just begun to run a tab. The following relays information passed down regarding just how some of these hefty numbers are arrived at, and what lies ahead for dear old RPI.
In a report given to the Senate last semester following a weekend of Board of Trustees meetings, the usual good news/bad news scenario reared its head, but this time the bad news uncovered a heavy concept from the trustees. The good news—Rensselaer has made measurable progress toward becoming a world-class Institute with global reach and impact. The bad news—tuition will increase from $23,525 to $24,820 (that’s $1,295, or a 5.5 percent increase for those who left their calculators at home) for next year. While yearly tuition increases are common, with national averages skyrocketing in recent years, the reason for the increase came as a surprise.
Apparently RPI has taken on the practice of intentionally inflating the price tag for a Rensselaer degree. This practice, known as prestige pricing, was first introduced in 1995, when the Institute began a study on what types of financial backgrounds were had by students coming here. It turns out that many parents in the upper socioeconomic bracket were turned off to RPI by its comparatively low cost. The ‘Tute thus began a pricing policy that increased tuition to a level "more attractive" to the well-off, while maintaining it would hold true to its diversity initiatives.
What complicates matters is as more financially "un-needy" students come to RPI, the overall percentage of those who qualify for financial aid decreases. End result: tuition goes up and the average amount of financial aid shrinks annually. This is not to say John Smith is in jeopardy of receiving less aid next year as opposed to last, but rather just to serve notice that with each incoming class, the Institute aims to offer less aid on the whole. RPI maintains its aggressive policy to ensure those in need get the aid they qualify for, but will this policy inadvertently create a loophole so that Rensselaer could accept more (potentially) full-paying students than aid-needing applicants regardless of academic credentials? I would hope not.
The trustees undoubtedly endure a thorough process to arrive at tuition changes, with national inflation, general need, and pricing behaviors of similar institutions all taken into account. And, while a stable annual increase of 4.5 percent to 5.5 percent has been seen in recent years, any massive increase approved would be appropriately grandfathered in so a student would pay the same tuition in subsequent years as the year prior to the increase. In addition to this, the Institute has continued its aggressive recruitment program aimed at students of lower socioeconomic standing. Financial aid has always been and will continue to be an important piece of Rensselaer’s strategy for attracting tomorrow’s leaders. As students and future alumni, it is our duty to monitor the Institute’s adherence to this strategy.
To further explore the concept of prestige pricing, or to bring up other relevant issues facing students at RPI, please e-mail senate-listens@rpi.edu—or visit the Senate Monday nights at 9 pm in Union Room 3202.
I end this week with a plug for my new radio show, "Stewed Government", on WRPI 91.5 Wednesdays, 6-7 pm. Callers are always welcome to lend their views or offer hot topics for discussion. Tune in and be a part of the action! Have a great Hump Day and see you on campus!
