Aid in the Age of Uncertainty January 23, 2009 Joe Russo

 Very difficult economy ◦ Wall Street and Main Street ◦ Unemployment, lay offs, and asset losses ◦ Bail outs and demise of employers ◦ Role of media: hyperbole and misinformation  Concerns evident at college ◦ Possible cost related enrollment shifts ◦ Mid-year tuition increases and budget reductions ◦ Hiring and construction freezes ◦ Endowment values

 One more dynamic: Accountability ◦ Reauthorization demands for transparency ◦ Outcomes ◦ Indicators of performance

 Refrain from public announcements  Put any such announcements in perspective  Avoid knee-jerk reactions  Different solutions for different settings (reduced endowment versus large Pell enrollment)

 Is policy sustainable and fiscally responsible?  Manage future expectations  Incoming versus returning students  Reputation of institution

 Time and compassion  Special communications regarding affordability and compassion  Low/no interest institutional loan program  Retention efforts supporting on-time graduation

 What opportunities present themselves for ◦ Students and families: lifestyle; plan and save ◦ Institutions: review policies  Payment  Institutional loans  Financial aid packaging ◦ Everyone: invest/support 529 programs  Government  Employers  Institutions (I-529)  Family including relatives

◦ The media “Colleges Struggle to Preserve Financial Aid” New York Times, November 11, 2008 “Private Colleges Worry About a Dip in Enrollment” New York Times, December 21, 2008 “Things Bad Enough without Media Making them Worse” The Washington Post, December 31, 2008 “Moody’s Forecasts Stiff Challenges, Especially for Private Colleges, in the Next Year” The Chronicle of Higher Education, January 16, 2009

 How can we get the media to help? ◦ Understand Journalism 101 ◦ Stop using only extreme negative stories  Sad stories about individuals  Student loan crisis  Loan default  Drop out due to cost  Change dreams  Tuition announcements  Endowment  Budget freezes  No more capacity  Rankings

 How can we get the media to help? (continued) ◦ Publish good-news stories  Much more representative  Importance of an educated citizenry for individual and society  Investment not purchase  Global competitiveness ◦ Why not on-time graduation: another view of cost of college  Remediation  Lack of academic support  Capacity  Cost of college for not finishing on time

 Stay focused ◦ Mission ◦ Long term  Keep perspective  Look for efficiencies ◦ Fitter and trimmer  Time often heals much “ What we have before us are some breathtaking opportunities disguised as insoluble problems” John William Gardner