October 13, 2005

President Wilson convened the fifth SPBC meeting of 2005-06 at noon.

The agenda was a continuation of the discussion of tuition policies and practices begun at the last meeting. Members had carefully reviewed the documents distributed then and offered the following observations in response to the President’s invitation to comment.

One member wondered aloud whether we had reached the “tipping point” with tuition -- that is, if we continue to increase tuition at the same rate as  in the 1990s, will that cause us to lose students who perceive that they can get an education of equal quality elsewhere for less money? Although IWU’s tuition remains lower than many of the highest-ranked national liberal arts colleges, some students may not be convinced that the value of their IWU degree exceeds the value of a University of Illinois degree, for example, which they could get now for about half the cost of attending Illinois Wesleyan.

It was noted, too, that from both anecdotal information and assessment surveys, many students already feel that they pay too much. Students are also very worried about the amount of debt they must repay after they graduate. Debt loads may even play a part in the majors that students choose; some may shy away from fields that lead to lower-paying careers if they believe they will not earn enough to repay college loans in a timely fashion. Others anticipate incurring debt in graduate or professional school and may prefer a less expensive undergraduate education as a result. Finally, whether we like it or not, it is undeniable that prospective students and their parents increasingly view a college education as a commodity to be purchased; thus, many analyze their options from the perspective of consumers rather than learners.

President Wilson stated that he believes there is a good chance to moderate tuition increases in the future with careful financial management and additions to non-tuition revenue (primarily gift and endowment income). Vice President Klotzbach cautioned, however, that there is very little fat in the budget now since most “low hanging fruit” has been picked in the last several years.

Several members argued that we need to do a better job of pointing out to students the benefits they receive here compared to large public institutions.  For example, IWU has not traditionally tacked on “user fees” for printing, career service assistance, health services, and other programs for which many institutions now do charge fees separate from tuition, room, and board.

It was suggested that the President and Vice President for Business and Finance hold an open forum with students to discuss tuition policies and budgetary issues in general. Student members of the SPBC predicted that the forum, if held, would be of such interest that it would need to be scheduled in the Shirk Center! Other suggestions for communicating with students included writing a letter to explain any tuition increases from year to year and asking students what they would be willing to give up to keep tuition increases to a minimum.

The President summarized what he had heard from the group as follows: A rate of increase in tuition of 5.75% for 2006-07 seems acceptable, but at the high end of the range we should consider. Having some kind of discussion with students, if possible before a final decision on 2006-07 costs, would be highly desirable.

The Committee will meet next on October 24 in conjunction with the Board of Trustees meeting.

Distributed to all faculty and staff: October 24, 2005