Challenge of college affordability

By Christopher Blake

----

In his State of the Union address, President Barack Obama threw the weight of his office firmly behind the issue of college affordability. This is good for our country, our students and our colleges.

Clearly, the cost of education is of critical importance. By its nature, the subject demands the deliberation of those who work together to provide an education that opens doors, opportunities and futures. According to the College Board, tuition has risen over the past five years at America's private colleges and universities an average of $3,730. Public four-year institutions have similarly increased tuition in ways that outpace inflation.

Yet, while it is easy to see only escalating costs, these numbers do not paint the entire picture. In reality, increased financial aid and scholarships have reduced any gains in net tuition revenue for colleges - revenue that has remained flat for the same five-year period.

All the same, at Mount Mercy University, we are vigilant in addressing student needs and containing tuition. In the past few years our institutional discount rate - the percentage we discount the cost of tuition - has risen by over 5 percent, and our freshmen now have their tuition discounted by approximately 46 percent.

We have helped secure federal loans for approximately 1,300 students in 2011-12, totaling $14 million. We are granting academic and athletic scholarships and grants to the value of $8.1 million, of which only $800,000 is paid for by funds from our endowment and annual scholarship gifts. The remainder is funded directly from our operating budget.

Our efforts to maintain tuition levels that are less than the median of Iowa's private colleges enable our students to graduate with some of the lowest debt in the state. Many become leaders in Cedar Rapids and help build a stronger Eastern Iowa. Nearly 6,000 alumni live and work in Linn and Johnson counties, contributing millions to the local tax base.

But this is not enough. We cannot be complacent. We must continue to limit the cost of education, to make savings where possible without compromising academic quality, and to assist in mitigating student debt, in keeping with our founders' mission.

Like many small private institutions, Mount Mercy has an ongoing commitment to help students succeed at all stages and walks of life, including a high percentage of first-generation students.

We will continue to use wisely every dime to advance the Mercy mission to the poor, sick and uneducated for everyone who needs higher education, now and for generations to come.

Christopher Blake is president of Mount Mercy University, Cedar Rapids. Comments: president@mtmercy.edu