Students have probably noticed the uphill slope of their tuition dollars since they’ve been at college.
“Increasing tuition is bound to happen at every school. But when will it stop?” said sophomore Hsin-Mei Wang. “In my opinion, it’s increasing too fast.”
SMU tuition and fees for the 2004-2005 school year is $25,358. Tuition has risen by an average of 6.6 percent since 2000, totaling a nearly $6,000 increase, according to the division of enrollment services.
What students may not have noticed is a slightly smaller student body.
Data supplied by the registrar’s office shows that fall 2004 enrollment dropped 2.3 percent, or 260 students, compared to the fall 2003 semester. Preliminary data for spring 2005 indicates that this semester’s enrollment has fallen 4.8 percent, or 524 students, compared to spring 2004. In fall 2001, 2 percent more students enrolled than in the previous fall; in spring 2002, there were 5.7 percent more students than in the previous spring.
Are these two factors — increasing tuition and decreasing enrollment — related?
John O’Connor, interim vice president for business and finance, doesn’t think so.
“There does not appear to be a direct correlation between the drop in enrollment and the price of our tuition,” he said. “We are right at the average for similar universities whose tuition we track and below that of our benchmark institutions.”
O’Connor said that of the 7.5 percent tuition increases in 2003 and 2004, 1.5 percent each year went to fund the new Dedman Center. In general, university tuitions increase because the costs of supporting university infrastructure increase.
“The expense of hiring good faculty and support staff, technology, etc., is important to be competitive,” O’Connor said. “We are continually trying to improve instructional and program offerings, which are important to continue to attract high quality students.”
Senior Barbara Hernandez chose SMU instead of a less expensive university based on the caliber of professors and the school’s prestigious reputation “that places you in a good position when looking for a job.”
SMU’s high costs have affected Hernandez’s decisions on when to finish her last two semesters.
“In the summer, it all comes from out-of-pocket money, which can put a big dent on your tuition budget,” she said. “I would rather get financial aid for a regular semester instead of paying full summer tuition.”
Hernandez acknowledges SMU’s high tuition but doesn’t see it as prohibitive to students.
“I think that students who really want to come here can find a way to get financial aid and other scholarships to make the tuition burden less painful,” she said. Hernandez uses both to help pay for her tuition, and she also works part-time on campus.
Various economic factors play into student’s ability to pursue higher education, although it’s often difficult to pinpoint exact effects.
“For instance, a poor economy may put employees out of work, so they may pursue professional degrees to better their opportunities. However, at the same time, employers may cut back on expenses and not pay for their employees’ education,” O’Connor said. “Students may have fewer funds to pay for an education, but their need-based aid requirements may increase, so they are still able to attend the school of their choice.”
Thomas Osang, director of undergraduate economic studies, discussed SMU’s price elasticity in regard to demand for enrollment.
“If the price of an SMU education rises faster than the overall inflation rate, and, more importantly, parental incomes, some parents may search for less expensive alternatives, such as public universities,” Osang said.
“On the other hand, the price is not the only variable that affects demand for education,” he said. “If the demand for an SMU education happens to be strongly price inelastic… if the general attitude of SMU parents is ‘Hey, I’ll pay whatever it costs to get my son or daughter an SMU education,’ it matters very little whether we charge $25,000 or $50,000 for tuition and fees. In both cases, the demand would be about the same,” he said. “In general, it would require a careful econometric analysis to try to identify the relative importance of each factor behind demand for college, or SMU, enrollment.”
O’Connor said that successful schools are ones with a “quality product” and “good selectivity.”
“We – universities and SMU in particular – need to look for ways to save without compromising the product. We all could do a better job of that,” O’Connor said. “As long as we provide a good product at a price comparable to other similar schools, I suspect we will be okay.”
“Of course,” O’Connor added, “that is up to our students.”
