By Benjamin Engle
This two-part article was written in response to an email from alum Geoff Pietsch '59. He paid 900 dollars for tuition during his four years at Union and questioned the justification behind consistently rising rates of the college's tuition.
The Union College comprehensive fee will increase in the 2010-2011 fiscal year for the thirty-fifth consecutive year.
Up 3.75% from the current 2009-2010 fiscal year, the comprehensive fee, which includes the cost of tuition, room, board, student activity fee, and Minerva House fee, is scheduled to be $53,329 in 2010-2011. The 3.75% increase is the lowest increase in the comprehensive fee since the 2001-2002 fiscal year.
According to the National Center on Public Policy and Higher Education, college tuition and fees across the country from 1982 to 2007 increased 439% while the median income only rose by 147%. From 1982 to 2007, Union's comprehensive fee increased $17,219, almost a five-fold increase.
While the cost of college is increasing at a greater rate than the rate of inflation, Diane Blake, Vice President for Finance and Administration, believes that college tuition cannot be based on the Consumer Price Index (CPI) since institutions of higher education have their market baskets of goods are different. Instead, colleges are held to the Higher Education Price Index (HEPI).
According to Commonfund, the group that calculates the HEPI, "HEPI measures the average relative level in the prices of a fixed market basket of goods and services purchased by colleges and universities through current-fund educational and general expenditures." The HEPI is comprised of faculty, administrative, clerical, and service employees' salaries and benefits as well as miscellaneous services, supplies and materials, and utilities.
Meanwhile, the CPI, which is compiled by the U.S. Labor Department's Bureau of Labor Statistics, is a measure of the average change in prices over time in fixed basket of goods and services that people buy for day-to-day living. The CPI is made up of food, clothing, shelter, fuel, and transportation fees, among other services.
According to Blake, Union's comprehensive fee increases yearly despite departmental and administrative cuts since the various costs of labor make up almost half of Union's budget.
"We are a labor-intensive institution," Blake said. "We pride ourselves on our 10:1 faculty ratio. If we didn't maintain that ratio, Union wouldn't be the education you applied for."
Union takes pride in the quality of faculty that it hires. This goal, however, is an expensive one, since most of the faculty hold Ph.Ds or the highest academic certification in their field. Also, Graduate Assistants and Teaching Assistants do not teach classes at Union.
"[Students] come [to Union] because of the small class size, close interaction with professors, and classes taught solely by those with PhDs," Blake said. "We don't want to lay off faculty because we want to maintain our current ratio."
Despite the fact that faculty and staff salaries and benefits make up the greatest percentage of the annual budget, Blake admits that those emoployed by the college are underpaid.
"On average, the faculty [at Union] is not paid as well as those at our peer institutions," Blake said, "but it is part of the Strategic Plan to improve the situation."
The comprehensive fee that students pay continues to increase annually because traditional revenue sources for the college have decreased over the years.
"The full price is not the cost of a Union education," Blake added.
Benjamin Engle's coverage of rising tuition at Union will be continued next week in our 5/13 edition.
Originally published in Union's Concordy on May 6, 2010.
Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts
Friday, May 14, 2010
Thursday, April 29, 2010
Student Activity fee to increase
By Benjamin Engle
The Union College Board of Trustees is scheduled to meet during ReUnion weekend to approve the College's budget for the 2010-2011 fiscal year. However, in February 2010, for the second consecutive year, the Board of Trustees approved an increase in the comprehensive fee (tuition) to attend Union.
The comprehensive fee for the 2010-11 academic year will be $52,329, up from $50,439 in 2009-10, a difference of $1890 for an overall increase of approximately 3.7%. The Student Activity fee, which is included in the comprehensive fee, will also increase in the upcoming year.
According to Karen Chan '10,Student Forum Vice President of Finance, the Student Activity fee will increase from $336 in 2009-10 to $351 in 2010-11, an increase of $15. In 2009-10, Student Forum controlled a budget of approximately $672,000 and will increase to over $700,000 in 2010-11.
The Student Activity budget is funded through the Student Activity fee and is controlled by Student Forum, the overseeing student body of clubs and organizations on campus. Unlike Minerva House budgets, which have a flat fee and have not changed, the Student Activity fee is set to rise with tuition.
The Student Forum Finance Committee is responsible for asking club finance representatives for budget proposals and allocating money from the Student Activity budget for various clubs and events on campus.
"We like to give money for great ideas and events, but we have to make sure clubs and events are not exclusive," Chan said. "Everything is student run and organized for the student body."
As Vice President of Finance, Chan's goal has been to make the Student Forum budget process more understandable.
"My role is to make the budget process more transparent and to help make sure that events and clubs are beneficial to the community," Chan said.
During her tenure as Vice President, she has established mid-year evaluations for clubs to ensure that they are spending their money effectively and efficiently throughout the academic year.
While Chan did not want to release the specific budget analysis for the current fiscal year, most of the money allocated by Student Forum is for the social clubs, not the academic or intellectual organizations.
Even with the annual increase of the Student Activity budget, Student Forum allocates almost all the money in its budget for new clubs and events as well as to increase support for existing programs.
Of its budget during the 2009-10 academic year, Student Forum allocates the most money to SpringFest Committee and to U-Program Committee.
This year, SpringFest was allocated $90,000 and requested and was approved for an additional $20,000 for a total of $110,000 or 16.37% of the total Student Activity budget. U-Program, which offers programming numerous times each term, was allocated $100,000 in 2009-10 or 14.88% of the total Student Activity budget.
While Chan and the rest of the Student Forum Finance Committee carefully analyze the pros and cons of every club and organization on campus before allocating funding, Chan believes that Student Forum needs to be responsible when allocating student funds.
"I am pushing Student Forum to re-evaluate the Student Activity fee for 2011-2012," Chan said. "We can do many things, we can freeze [the fee] or we can have it raise with tuition during certain years."
Even though the Board of Trustees sets the comprehensive fee, neither the administration nor the Board of Trustees has told Student Forum what to do concerning their budget or the Student Activity fee. Class of 2012 Secretary/Treasurer Aaron Glosser '12 believes that Student Forum should look closely at the Student Activities fee.
"Student Forum tends to have a surplus at the end of every year. To freeze or lower the Student Activities fee will have little effect on students, and reduce the strain of college tuition for families," said Glosser. "I believe freezing the Student Activities fee is a good way to decrease the amount that tuition rises each year. Given the current economic turmoil, it is important for every department at Union to think about fiscal responsibility, including student activities."
While Glosser contends that Student Forum has a surplus at the end of each year, Chan believes that Student Activities needs the increase in revenue to meet the expectations that the student body has of the organization.
"Events such as SpringFest cost more to produce and big names are demanded," Chan said.
Additionally, Student Forum has supported a lot of new clubs and organizations on campus, such as Ski Club and Outing Club, and has them expand and plan new events.
Chan also suggested that the Student Activities fee keeps campus speakers, concerts, and club activities, such as bowling, either at no or low additional cost to students, which is part of the draw for many on campus.
Even though Student Forum tries to allocate money to groups that will help students expand their horizons and meet campus needs, they often turn down events because of cost or their overall value that they will bring to campus, such as not allocating money to bring comedian Bill Hader of Saturday Night Live and Superbad to campus.
On the other hand, Student Forum has also had to fund events and clubs that were in danger of being cut due to departmental cuts, such as the club hockey team and LobsterFest.
In previous years, LobsterFest was paid for by dining services. However, this year, LobsterFest costs between $15,000 and $20,000 and is paid for by Student Forum.
"People expect free trips, free SpringFest, but at some point we have to say no because we have to make due with what we have," Chan added.
Chan encourages students to attend Student Forum meetings and voice their opinions on campus topics. Every Student Forum meeting is open to the entire campus and are held in room 410 of the Reamer Campus Center on Tuesdays at 5 p.m.
"Student Forum needs to make students aware of the economic recession," Chan said. "We really need to think about proposals to see if an event is cost effective." While Chan believes that Student Forum needs to re-evaluate the Student Activity fee, she believes that the body is moving in a positive direction.
"Student Forum must draw attention to problems, which is not an overnight change because of campus demands and wants," Chan said. "There is more work to be done."
Originally published in Union's Concordy on 4/29/10
The Union College Board of Trustees is scheduled to meet during ReUnion weekend to approve the College's budget for the 2010-2011 fiscal year. However, in February 2010, for the second consecutive year, the Board of Trustees approved an increase in the comprehensive fee (tuition) to attend Union.
The comprehensive fee for the 2010-11 academic year will be $52,329, up from $50,439 in 2009-10, a difference of $1890 for an overall increase of approximately 3.7%. The Student Activity fee, which is included in the comprehensive fee, will also increase in the upcoming year.
According to Karen Chan '10,Student Forum Vice President of Finance, the Student Activity fee will increase from $336 in 2009-10 to $351 in 2010-11, an increase of $15. In 2009-10, Student Forum controlled a budget of approximately $672,000 and will increase to over $700,000 in 2010-11.
The Student Activity budget is funded through the Student Activity fee and is controlled by Student Forum, the overseeing student body of clubs and organizations on campus. Unlike Minerva House budgets, which have a flat fee and have not changed, the Student Activity fee is set to rise with tuition.
The Student Forum Finance Committee is responsible for asking club finance representatives for budget proposals and allocating money from the Student Activity budget for various clubs and events on campus.
"We like to give money for great ideas and events, but we have to make sure clubs and events are not exclusive," Chan said. "Everything is student run and organized for the student body."
As Vice President of Finance, Chan's goal has been to make the Student Forum budget process more understandable.
"My role is to make the budget process more transparent and to help make sure that events and clubs are beneficial to the community," Chan said.
During her tenure as Vice President, she has established mid-year evaluations for clubs to ensure that they are spending their money effectively and efficiently throughout the academic year.
While Chan did not want to release the specific budget analysis for the current fiscal year, most of the money allocated by Student Forum is for the social clubs, not the academic or intellectual organizations.
Even with the annual increase of the Student Activity budget, Student Forum allocates almost all the money in its budget for new clubs and events as well as to increase support for existing programs.
Of its budget during the 2009-10 academic year, Student Forum allocates the most money to SpringFest Committee and to U-Program Committee.
This year, SpringFest was allocated $90,000 and requested and was approved for an additional $20,000 for a total of $110,000 or 16.37% of the total Student Activity budget. U-Program, which offers programming numerous times each term, was allocated $100,000 in 2009-10 or 14.88% of the total Student Activity budget.
While Chan and the rest of the Student Forum Finance Committee carefully analyze the pros and cons of every club and organization on campus before allocating funding, Chan believes that Student Forum needs to be responsible when allocating student funds.
"I am pushing Student Forum to re-evaluate the Student Activity fee for 2011-2012," Chan said. "We can do many things, we can freeze [the fee] or we can have it raise with tuition during certain years."
Even though the Board of Trustees sets the comprehensive fee, neither the administration nor the Board of Trustees has told Student Forum what to do concerning their budget or the Student Activity fee. Class of 2012 Secretary/Treasurer Aaron Glosser '12 believes that Student Forum should look closely at the Student Activities fee.
"Student Forum tends to have a surplus at the end of every year. To freeze or lower the Student Activities fee will have little effect on students, and reduce the strain of college tuition for families," said Glosser. "I believe freezing the Student Activities fee is a good way to decrease the amount that tuition rises each year. Given the current economic turmoil, it is important for every department at Union to think about fiscal responsibility, including student activities."
While Glosser contends that Student Forum has a surplus at the end of each year, Chan believes that Student Activities needs the increase in revenue to meet the expectations that the student body has of the organization.
"Events such as SpringFest cost more to produce and big names are demanded," Chan said.
Additionally, Student Forum has supported a lot of new clubs and organizations on campus, such as Ski Club and Outing Club, and has them expand and plan new events.
Chan also suggested that the Student Activities fee keeps campus speakers, concerts, and club activities, such as bowling, either at no or low additional cost to students, which is part of the draw for many on campus.
Even though Student Forum tries to allocate money to groups that will help students expand their horizons and meet campus needs, they often turn down events because of cost or their overall value that they will bring to campus, such as not allocating money to bring comedian Bill Hader of Saturday Night Live and Superbad to campus.
On the other hand, Student Forum has also had to fund events and clubs that were in danger of being cut due to departmental cuts, such as the club hockey team and LobsterFest.
In previous years, LobsterFest was paid for by dining services. However, this year, LobsterFest costs between $15,000 and $20,000 and is paid for by Student Forum.
"People expect free trips, free SpringFest, but at some point we have to say no because we have to make due with what we have," Chan added.
Chan encourages students to attend Student Forum meetings and voice their opinions on campus topics. Every Student Forum meeting is open to the entire campus and are held in room 410 of the Reamer Campus Center on Tuesdays at 5 p.m.
"Student Forum needs to make students aware of the economic recession," Chan said. "We really need to think about proposals to see if an event is cost effective." While Chan believes that Student Forum needs to re-evaluate the Student Activity fee, she believes that the body is moving in a positive direction.
"Student Forum must draw attention to problems, which is not an overnight change because of campus demands and wants," Chan said. "There is more work to be done."
Originally published in Union's Concordy on 4/29/10
Monday, February 2, 2009
Notice: Syndication
The article entitled "Analysis reveals effects of economic downturn at Union" has been syndicated across the "Syndicated College News Network."
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Thursday, January 22, 2009
Analysis Reveals Effects of Economic Downturn
By Benjamin Engle
Union College officials are closely monitoring the news of the economic crisis after the results of its internal financial stress analysis.
At the September meeting of the Executive Committee of the Board of Trustees, the Trustees decided to have the Finance and Administration staff conduct an analysis of the college’s financial weaknesses.
The stress analysis considered factors such as unemployment rates, stock market and credit market performance, and how Union families are being affected into consideration. In addition, the Finance and Administration department took into account the declining amount of wealth of its families and the potential for increases in financial aid need.
During the winter break, President Stephen Ainlay issued a message to the Union community regarding the state of the economy and its effect on Union. In his letter, Ainlay stated, “…Union College is by no means isolated from the effects of the economic downturn, and this has commanded a great deal of our time and attention in recent months.”
According to Diane Blake, Vice President for Finance and Administration, Union’s endowment, like most colleges and universities, has taken a hit. The value of Union’s endowment has declined by 25%, a drop of $100 million since June 30, 2008. At the end of the 2007-2008 fiscal year, the endowment was $400 million, however, because of the economic events, as of December 31, 2008, the endowment stood at $300 million.
Nevertheless, “Our endowment has performed better than most,” Ainlay wrote. “While we too have realized losses, we have consistently outperformed the S&P and composite index in 2008 year-to-date.”
Even though 15% of Union’s $130 million budget is comprised of income from the value of the endowment, Blake is optimistic, “The downturn wont hit us today, but it can hit us later. Our best hope is for the market to go up for the year ending June 30th.”
Because of the uncertainty of the market and the future value of the endowment, the President and Board of Trustees have delayed the budget presentation and approval process. In past years, the Board of Trustees has usually approved the next year’s budget at their February meeting. In order to ensure that they don’t make any rash or sudden moves, the 2010 budget will tentatively be approved at the May meeting of the Board of Trustees.
In preparation for next year’s budget, Blake and her staff are investigating various strategies that won’t affect Union’s day-to-day operations, however, they are being cautious. In preparation for next year’s budget, the college has set a hiring freeze and is not filling many open positions.
The Board of Trustees will analyze these different strategies at their February meeting, as well as make difficult decisions, including the fate of the new 35,000 square foot Peter Irving Wold Science and Engineering building to be built in the area between Olin, Science and Engineering, Schaffer Library, and Social Sciences
“We at Union are hesitant to act irrationally,” Blake stated. “We already maximize our resources and stretch the budget pretty far. We make sure we have the facts before we make decisions.”
Recently, college layoffs have spiked across the country. According to a December survey of over 200 public and private colleges and universities by the Chronicle of Higher Education and Moody's Investors, 11% of schools had laid off employees and an additional 26% of schools were considering layoffs. Locally, RPI has come under much criticism for laying off 98 employees in an effort to handle their economic problems. The Albany Times Union reported that RPI was the only capital region college to conduct layoffs so far.
According to Blake, Union is not considering following RPI by laying anyone off at this point.
“We value community and commitment. Layoffs [are] not on the table,” Blake said.
While Blake believes that any money lost in the endowment is a loss and is hard to recover, she is looking ahead relatively positive, “Budget 2010 will be a tight year but we do not expect a shortfall.”
Even though the 2010 budget is not expected to have a short fall, the Department of College Relations is working hard to ensure that Alumni giving stay stable. According to Nick Famulare ’92, Director of Alumni Relations, in 2008, there were approximately 8,300 donors to Union with a 41% alumni participation rate. During the course of 2008, Union took in approximately $27 million.
However, the economic problems have not spared Alumni giving.
“No question about it, like our peer colleges, the downturn has affected donor participation and gifts to the institution,” Famulare said.
According to Famulare, Union is behind in both donor participation and general gifts to the institution. Alumni are being more cautious because of the uncertainty of the economy and of their jobs. While Alumni are being more conservative in their giving, Famulare believes that donors will come back in a few months and may still donate when the economy improves.
Famulare is optimistic that Alumni and community donations will return to pre-downturn level, “Union has been around for over 200 years, with an annual fund that is one of the oldest in the country. Alumni have rallied before to support Union during troubled times and I am confident they will do so again.”
As President Ainlay stated in both his fall letter to the community and in December, he believes that Union is in a good position in the educational market place.
“…We will not jeopardize the quality of the Union experience or compromise in any way the health and safety of our community,” Ainlay wrote. “The bottom line is that, despite the economic downturn, Union remains strong.”
Originally published in Union's Concordy on January 22, 2009.
Union College officials are closely monitoring the news of the economic crisis after the results of its internal financial stress analysis.
At the September meeting of the Executive Committee of the Board of Trustees, the Trustees decided to have the Finance and Administration staff conduct an analysis of the college’s financial weaknesses.
The stress analysis considered factors such as unemployment rates, stock market and credit market performance, and how Union families are being affected into consideration. In addition, the Finance and Administration department took into account the declining amount of wealth of its families and the potential for increases in financial aid need.
During the winter break, President Stephen Ainlay issued a message to the Union community regarding the state of the economy and its effect on Union. In his letter, Ainlay stated, “…Union College is by no means isolated from the effects of the economic downturn, and this has commanded a great deal of our time and attention in recent months.”
According to Diane Blake, Vice President for Finance and Administration, Union’s endowment, like most colleges and universities, has taken a hit. The value of Union’s endowment has declined by 25%, a drop of $100 million since June 30, 2008. At the end of the 2007-2008 fiscal year, the endowment was $400 million, however, because of the economic events, as of December 31, 2008, the endowment stood at $300 million.
Nevertheless, “Our endowment has performed better than most,” Ainlay wrote. “While we too have realized losses, we have consistently outperformed the S&P and composite index in 2008 year-to-date.”
Even though 15% of Union’s $130 million budget is comprised of income from the value of the endowment, Blake is optimistic, “The downturn wont hit us today, but it can hit us later. Our best hope is for the market to go up for the year ending June 30th.”
Because of the uncertainty of the market and the future value of the endowment, the President and Board of Trustees have delayed the budget presentation and approval process. In past years, the Board of Trustees has usually approved the next year’s budget at their February meeting. In order to ensure that they don’t make any rash or sudden moves, the 2010 budget will tentatively be approved at the May meeting of the Board of Trustees.
In preparation for next year’s budget, Blake and her staff are investigating various strategies that won’t affect Union’s day-to-day operations, however, they are being cautious. In preparation for next year’s budget, the college has set a hiring freeze and is not filling many open positions.
The Board of Trustees will analyze these different strategies at their February meeting, as well as make difficult decisions, including the fate of the new 35,000 square foot Peter Irving Wold Science and Engineering building to be built in the area between Olin, Science and Engineering, Schaffer Library, and Social Sciences
“We at Union are hesitant to act irrationally,” Blake stated. “We already maximize our resources and stretch the budget pretty far. We make sure we have the facts before we make decisions.”
Recently, college layoffs have spiked across the country. According to a December survey of over 200 public and private colleges and universities by the Chronicle of Higher Education and Moody's Investors, 11% of schools had laid off employees and an additional 26% of schools were considering layoffs. Locally, RPI has come under much criticism for laying off 98 employees in an effort to handle their economic problems. The Albany Times Union reported that RPI was the only capital region college to conduct layoffs so far.
According to Blake, Union is not considering following RPI by laying anyone off at this point.
“We value community and commitment. Layoffs [are] not on the table,” Blake said.
While Blake believes that any money lost in the endowment is a loss and is hard to recover, she is looking ahead relatively positive, “Budget 2010 will be a tight year but we do not expect a shortfall.”
Even though the 2010 budget is not expected to have a short fall, the Department of College Relations is working hard to ensure that Alumni giving stay stable. According to Nick Famulare ’92, Director of Alumni Relations, in 2008, there were approximately 8,300 donors to Union with a 41% alumni participation rate. During the course of 2008, Union took in approximately $27 million.
However, the economic problems have not spared Alumni giving.
“No question about it, like our peer colleges, the downturn has affected donor participation and gifts to the institution,” Famulare said.
According to Famulare, Union is behind in both donor participation and general gifts to the institution. Alumni are being more cautious because of the uncertainty of the economy and of their jobs. While Alumni are being more conservative in their giving, Famulare believes that donors will come back in a few months and may still donate when the economy improves.
Famulare is optimistic that Alumni and community donations will return to pre-downturn level, “Union has been around for over 200 years, with an annual fund that is one of the oldest in the country. Alumni have rallied before to support Union during troubled times and I am confident they will do so again.”
As President Ainlay stated in both his fall letter to the community and in December, he believes that Union is in a good position in the educational market place.
“…We will not jeopardize the quality of the Union experience or compromise in any way the health and safety of our community,” Ainlay wrote. “The bottom line is that, despite the economic downturn, Union remains strong.”
Originally published in Union's Concordy on January 22, 2009.
Saturday, December 13, 2008
Union Faces Economic Challenges
Benjamin Engle
While Union College lies 166 miles north of the New York Stock Exchange, the problems affecting the global markets have reached Union’s administration. The economic crisis currently affecting the United States and countries around the world has pushed Union to take a closer at the financial status of its students and of the institution overall.
Like most major corporations and businesses, Colleges across the United States have been forced to monitor their assets and budgets. Some schools, in order to save money, have instituted spending freezes to ensure that they do not exceed their already tight budgets and tuition freezes to ensure that students can continue to afford their education.
In response to the recent troubles and uncertainty of the economy, President Stephen C. Ainlay shared his views on the situation through an e-mail sent to faculty and staff members indicating how the economy is affecting Union.
“Union College is by no means isolated from the effects of the economic downturn,” Ainlay wrote. “All of us are personally affected and it would be irresponsible of us if we didn’t anticipate the potential affects on our institutional operations.”
Through his letter, Ainlay explained that Union’s Financial and Administration staff will monitor the affects of the endowment and the Board of Trustees Executive Committee is analyzing the College’s weak financial points.
As the Concordiensis went to press, the Finance and Administration staff failed to return multiple requests for interviews, however, President Ainlay made it clear in his letter that Union’s finances are strong.
“Our endowment has performed better than most [and] we did not have any investments in the Common Fund (which has caused problems for other institutions),” Ainlay stated.
In addition to the College’s financial outlook, Union’s Financial Aid office is actively going though “what if” scenarios to ensure that it can properly provide financial assistance to eligible students.
“Both the Finance and Financial Aid Offices are assessing the current economic situation and how that may impact our students. We are prepared to continue to help students and families in the event they are feeling the effects of the downturn in the economy. Despite the recent increase in unemployment, we have not experienced a corresponding increase in additional aid requests from families thus far” said Linda Parker, the Director of Financial Aid.
Parker believes that while the increasing percentage of those unemployed will affect Union families, the Financial Aid Department hasn’t seen an increase in the number of families requesting additional financial aid.
“We will continue to make Union an affordable place for students to learn,” Parker said.
However, even if the college’s endowment decreases or budget cuts occur, Parker is confident that Union will not reduce the amount of financial aid offered to eligible students.
“We will continue to meet the demonstrated financial need of our students, but in light of the expected increase in unemployment combined with losses that families have sustained in the stock market, going forward we realize it may not be business as usual, and we are actively preparing for those possible scenarios,” added Parker.
Currently, over half of the students at Union receive financial assistance. The average Union scholarship, according to the Financial Aid office, is approximately $20,800 and is determined through various applications. With the economic problems affecting the entire nation and forefront in the news, Parker expects an increase in financial aid applications next year. Applications for financial aid for new students are due February 1st while returning students must apply by April 15th.
With the economy not getting better anytime soon, Union is investigating how to deal with the financial crunch in the future, nonetheless, President Ainlay is anticipating financial problems.
“At the institutional level, there is no doubt that we will face some financial challenges, Ainlay wrote. “Union remains strong…We will continue to move ahead and make a difference.”
Originally published in Union's Concordy on October 30, 2008.
While Union College lies 166 miles north of the New York Stock Exchange, the problems affecting the global markets have reached Union’s administration. The economic crisis currently affecting the United States and countries around the world has pushed Union to take a closer at the financial status of its students and of the institution overall.
Like most major corporations and businesses, Colleges across the United States have been forced to monitor their assets and budgets. Some schools, in order to save money, have instituted spending freezes to ensure that they do not exceed their already tight budgets and tuition freezes to ensure that students can continue to afford their education.
In response to the recent troubles and uncertainty of the economy, President Stephen C. Ainlay shared his views on the situation through an e-mail sent to faculty and staff members indicating how the economy is affecting Union.
“Union College is by no means isolated from the effects of the economic downturn,” Ainlay wrote. “All of us are personally affected and it would be irresponsible of us if we didn’t anticipate the potential affects on our institutional operations.”
Through his letter, Ainlay explained that Union’s Financial and Administration staff will monitor the affects of the endowment and the Board of Trustees Executive Committee is analyzing the College’s weak financial points.
As the Concordiensis went to press, the Finance and Administration staff failed to return multiple requests for interviews, however, President Ainlay made it clear in his letter that Union’s finances are strong.
“Our endowment has performed better than most [and] we did not have any investments in the Common Fund (which has caused problems for other institutions),” Ainlay stated.
In addition to the College’s financial outlook, Union’s Financial Aid office is actively going though “what if” scenarios to ensure that it can properly provide financial assistance to eligible students.
“Both the Finance and Financial Aid Offices are assessing the current economic situation and how that may impact our students. We are prepared to continue to help students and families in the event they are feeling the effects of the downturn in the economy. Despite the recent increase in unemployment, we have not experienced a corresponding increase in additional aid requests from families thus far” said Linda Parker, the Director of Financial Aid.
Parker believes that while the increasing percentage of those unemployed will affect Union families, the Financial Aid Department hasn’t seen an increase in the number of families requesting additional financial aid.
“We will continue to make Union an affordable place for students to learn,” Parker said.
However, even if the college’s endowment decreases or budget cuts occur, Parker is confident that Union will not reduce the amount of financial aid offered to eligible students.
“We will continue to meet the demonstrated financial need of our students, but in light of the expected increase in unemployment combined with losses that families have sustained in the stock market, going forward we realize it may not be business as usual, and we are actively preparing for those possible scenarios,” added Parker.
Currently, over half of the students at Union receive financial assistance. The average Union scholarship, according to the Financial Aid office, is approximately $20,800 and is determined through various applications. With the economic problems affecting the entire nation and forefront in the news, Parker expects an increase in financial aid applications next year. Applications for financial aid for new students are due February 1st while returning students must apply by April 15th.
With the economy not getting better anytime soon, Union is investigating how to deal with the financial crunch in the future, nonetheless, President Ainlay is anticipating financial problems.
“At the institutional level, there is no doubt that we will face some financial challenges, Ainlay wrote. “Union remains strong…We will continue to move ahead and make a difference.”
Originally published in Union's Concordy on October 30, 2008.
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