Worcester Business Journal

wbjournal.com | September 18, 2017 | Worcester Business Journal 13 B A N K I N G & F I N A N C E F O C U S Membership to SCU requires a one-time dividend-earning deposit of $5.00 in a prime share account. Equal Housing Lender. Equal Opportunity Employer. Federally insured by NCUA. Let's talk. 888.599.2265 | southbridgecu.com BUILDING FOR SUCCESS We've got you. SMART BUSINESS BANKING WITH SCU 15799_Generic_commercial_ad_WBJ_9x5.5.indd 1 9/8/17 10:33 AM sensitivity that families have," Blondin said. College of the Holy Cross has a need- blind admissions process, in which the college admits students regardless of their financial situation. Holy Cross says it meets 100 percent of students' demonstrated financial need, and spent $60 million this year on need-based aid. "It's always a conversation," Lynne Myers, Holy Cross' financial aid direc- tor, said of the importance of offering tuition help. "Financial aid competes with all other initiatives." That can make enough of a differ- ence, as Holy Cross became cheaper than competing schools elsewhere, and even in-state tuition at the University of Massachusetts. Junior economics major Vivian Ma of Westborough received more in aid than she said she was expected to receive at Boston College, Providence College and other schools. "For me, it's really worth it," Ma said of the costs. On the other end of the cost spec- trum, public schools like Fitchburg State University and Worcester State University remain relatively affordable options. Like other Massachusetts pub- lic colleges, both have steadily risen tuition and fees in part to offset dwin- dling state aid. But at Worcester State, for example, an in-state commuter stu- dent can still attend for just under $10,000 a year, and has increased need- based aid. "I can tell you, that's happened every year in recent memory," said Ryan Forsythe, the school's vice president for enrollment management. "We've dedi- cated more of that revenue to ensuring those families can afford the education." Fitchburg State has given around $42 million a year in aid in recent years — like Worcester State, not a significant increase — and Fitchburg has made it easier for students or fam- ilies to appeal financial aid decisions if they are in special circumstances, said Denise Brindle, Fitchburg's director of financial aid. At Anna Maria College, the high sticker price is offset by an average aid package of $27,000 per student, accord- ing to the school. Total aid this year topped $44 million, nearly all of it for financial need. UMass Medical School has increased aid in the past five years from $18 million to $22 million. College costs eclipse other costs of living Rising college costs have far outpaced general cost-of-living increases in the past decade. The U.S. Bureau of Labor Statistics reported last year in a 10-year span starting in 2006, college tuition and fees rose by 63 percent. All other items rose only by 21 percent, accord- ing to the bureau's Consumer Price Index. In a survey last fall, 56 percent of freshmen said they to have some con- cern about being able to pay for collee, and 13 percent to have major concerns, according to the Higher Education Research Institute at the University of California at Los Angeles. In 2013, just under half said financial aid was very important in choosing where to go — the highest rate in the 42 years the question was asked. Just under two-thirds said they were admit- ted to their first-choice college but attended a different school because of the financial aid they were offered. Slowdown ahead? At least a few colleges have taken steps in the other direction. La Salle University in Philadelphia, Sweet Briar College in Virginia and Drew University in New Jersey have each cut tuition by 20 percent or more in the past year. A broader slowdown could be ahead for the higher education industry. State lawmakers have begun prohibit- ing state schools from raising tuition and fees, and some less-selective private schools have found they need to rein in prices to attract more students, said Robert Kelchen, a professor at Seton Hall University in New Jersey who has published research on college costs. Research shows students are scared off from applying to a college by look- ing at listed prices, even before finding out what financial aid is available, Kelchen said. But he doesn't expect college costs to fall across the board at schools any time soon. "It'll be difficult to do in the short term because so much of the costs are labor," Kelchen said. "As long as stu- dents and families tend to value smaller class sizes and going to class in person, it's hard to bring costs down because those things are very expensive." Ryan Forsythe, Worcester State's vice president for enrollment management, said the school has increased need- based aid. W

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