College Costs Are Dollars Well Spent

The tuition for a liberal arts college education sharpens the intellect

August 17, 2010 RSS Feed Print
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Ronald Daniels is the president of Johns Hopkins University. Previously he was provost at the University of Pennsylvania.

What does it cost to go to one of America’s top private liberal arts colleges or universities for a year? $50,000? $20,000? Not a penny?

Answer: All of the above. It depends on what you can afford.

Not everyone can write a check for the full price of a year at a private college or university. Fortunately, we don’t ask everyone to do so.

At our best private institutions, if you can’t afford the sticker price, you won’t pay it. These colleges and universities are deeply committed to bringing the most promising young scholars to campus, no matter their families’ wealth or income. 

In fact, they are more committed than ever. Even in the face of the Great Recession, the nation’s top private research universities and liberal arts colleges are awarding larger financial aid packages to more students. Over the past five years, the median need-based aid grant at those schools has increased in size by a third; more than half of last year’s freshmen received aid.

At my own institution, for instance, undergraduate tuition is up 3.9 percent this fall in our schools of Arts and Sciences and Engineering, but the financial aid budget is up 11.3 percent from a year ago to $61.1 million. We admitted this year’s freshman class on a need-blind basis; we will provide grant aid to 47 percent of freshmen this fall, up from 34 percent last year. The average grant is up $2,300 to more than $29,000.

At the top private colleges like Johns Hopkins, then, we open our doors not to students whose parents can cut the check, but to those who can do the work and benefit from the opportunities we offer.

[See U.S. News's list of top liberal arts colleges.]

What are those opportunities? At these top schools, you are taught by world-class historians, philosophers, and literary scholars how to analyze, evaluate, critique—in other words, how to think—and how to communicate your conclusions effectively. You learn about discoveries in the hottest fields—neuroscience, public health, astrophysics, economics—directly from the professors who make them.

You can, in fact, help make those discoveries. At Johns Hopkins, we send our students into research labs on campus and to field research opportunities around the world; they do important, original work, often published in scholarly journals. Our undergraduates—apprenticing with senior faculty members—have controlled a NASA satellite, documented the hazards of gold mining in Mongolia, investigated the impact of change on impoverished families in Alabama, and written software to direct robots in mapping their environment.

If working with the best faculty makes a difference, so too does working with the best students. Inside the classroom and out, your intellect—and your world view—is sharpened by exposure to the diverse ideas of fellow students from around the country and around the world, and by their reaction to your own ideas.
And we are committed to helping you put what you’ve learned to use, in the community and in the world.

I would never argue that you can’t get an excellent education at a public college or university with a less expensive “sticker price” tuition. Of course you can! At Johns Hopkins, our faculty and graduate student ranks are full of very talented, very well-educated graduates of public institutions.

But I would argue this: You should not automatically eliminate private colleges and universities from your consideration any more than you should automatically eliminate public schools.

And you especially shouldn’t eliminate them on the basis of cost. If a private institution, even one with a daunting sticker price, is the right school for you, it’s more than likely that the aid is there to make it possible for you to enroll.

Tags:
colleges,
Johns Hopkins University,
financial aid,
education

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Would Ronald Daniels please answer the following questions:

1) In our hypothetical $50K/year sticker price scenario, are you talking cost (what it actually costs to deliver the education) or Price (what the student pays)?

For example, imagine it actually costs $40K, and students pay that on average, then those who pay full sticker price are underwriting the others, and those being underwritten still cost $40K even if they don't pay a cent. The money could have been spent by others elsewhere. Imagine every student paid zero because some wealthy individual underwrote every student to the tune of $100,000 at a university where the faculty was getting rich because cost was no object and students slacked off because it wasn't their money. The costs could be astronomical but the price could be zero, and you could make the case the guy underwriting the whole thing is a victim of fraud.

So what are we talking about? And do you admit that in my hypothetical, fraud is being committed?

2) Is value relative or absolute? I have an employee who has >$100K in debt to a grad school for an Masters in Journalism where courses cost $5,000 a pop. I've sent her to Gotham Writer's Workshop courses that are as long, as rigorous, more effective, and better taught by professionals (not academics) and they cost $395. She still has a problem saying her degree is not worth it and that the debt is ruining her life despite the fact that she left it off her resume when she applied, and she breaks into tears when we discuss it. I can tell you that no matter what anyone says, paying $5,000 for something that might even be worth $10,000 is foolish when the same thing can be had for $395. That's $4,605 in subsidy to something that isn't delivering value, only cost. (PS. Gotham runs at a profit, and the teachers report they are better treated by them than at the grad schools where they also teach as adjuncts).

Ronald, Your response, please.

3) How does one get at the truth at John's Hopkins? Are sample sizes of one big enough. Why not ask EVERY one of your grads. What if only 10% say it wasn't worth it, and only 1% say their lives were ruined, that may well be good enough to win a bet, but is it good enough for you? Do you adjust for psychological factors? Many victims of con artists don't admit their mistakes; indeed con artists rely on this.

I bought a Prius for $21,000. Had I paid $50,000 and thought it was worth every penny, then discovered I could have it for $21K, is my dealer being ethical? If a defect in the Prius only hurts 1% of the customers, is that OK?

Since I hold our institutions of higher education to higher standards than our manufacturing firms given their commitment to the truth, please give me answers to these questions.

Regards,

Brooke Allen

Brooke Allen of NJ 9:43AM March 27, 2011

I attended an expensive private school in the early 90s, graduated 40K$ in debt (it seemed like a lot back then), landed a terrific job on graduation, and payed off all of my loans in 3 years. Granted, I majored in engineering, and I lived frugally those 3 years, nonetheless, I think the answer is "it depends."

My 40K$ debt was after major financial aid packages, primarily in outright grants. I also had to play "chicken" with the admissions office as on years 2, 3 and 4 they always dropped my grants way down thinking it was too late for me to switch to another school. I'd kill at least a week a year threatening to bail if they didn't restore my grants, even showing admissions letters from my home state university. Eventually I won, but few other students did. The aid packages are often much juicier the freshman year to entice students, but schools can be quite sneaky thereafter.

Without the aid, my debt would have been around 90k$ which was near the price of a cheap house in a not too expensive neck of the woods at that time, about the same as 200k$ now. Point is, I wouldn't gamble if I was majoring in philosophy, but I think its still a good bet if you study something with solid job prospects and focus on loan repayment on graduation instead of getting addicted too early to the money. Incidently, I had many liberal arts friends who struggled with their loans for years, and ultimately "gave in" and went to law school or something else that paid the bills. I also had a couple that flunked out, dropped off the grid, tried for years to file for bankruptcy, and ultimately just worked underground jobs.

Davinder Singh of WA 3:23PM August 30, 2010

My Hopkins education and the name and reputation of the University opened many doors for me during my career. However, now the costs of attending Hopkins must be evaluated more carefully compared to the benefits of a public university. I am proud to be an alumni of JHU. I visited the campus with my son several years ago, but he decided to attend Mary Washington University, a Virginia public institution. He and we are very happy he made that decision and now he has no college debt hanging over him. I happen to believe the education there was just a good as Hopkins was for me.

kw of VA 10:44AM August 29, 2010

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