Letters to the Editor

3/18/10 7:00pm

Increased financial aid offsets tuition

To the Editor:Your Feb. 26 editorial ("Tuition hike inflicts financial burdens") criticizes the decision to raise tuition by 5.4 percent this fall, but fails to factor in increases in financial aid and investments in programs and infrastructure that make Rice one of the highest-value educations in the country.

Don't take our word for it. Among private universities, Kiplinger ranks Rice fourth for best value, and Princeton Review ranks Rice seventh.

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Tuition is a critical revenue source we count on to provide a top-quality educational experience for our students, and Rice's leaders weigh a number of factors before setting tuition rates each year. About 85 percent of Rice's core budget relies on net tuition revenue from undergraduate and graduate students and support from the endowment.

You might be surprised to know that it costs more than $80,000 per student to provide a year's worth of education. The $33,120 tuition that will be charged this fall is less than half that cost, so even students who do not receive financial aid are having their educations heavily subsidized by Rice's endowment, donors and other revenue sources.

What are some of the benefits of the investments Rice makes each year in its academic programs and campus? Enhancements include the undergraduate business minor, more study-abroad opportunities, civic engagement activities, two new residential colleges, a new recreation center and wireless Internet service in campus buildings. None of these would have been possible without additional dollars from tuition as well as annual gifts and other sources. And contrary to what the Thresher asserted, the School of Humanities has not abolished all courses that are not tied to a major. (See Allen Matusow's March 12 letter to the editor.)

Rice's endowment suffered an 18 percent loss in the prolonged economic and market downturn that, combined with spending to support our operations, added up to a $1 billion reduction. Although there has been some recovery, the amount we budget for spending from the endowment is based on a three-year trailing average of market value, which means we will feel the impact of that loss for at least a couple more years - and that's based on the assumption that market returns are healthy. This affects everyone in the Rice community - faculty and staff as well as students.

Rice's leaders are keenly aware of that impact. Rather than being "insensitive" to the financial situation of students and families, as your editorial claims, we stepped up our spending for financial aid. For entering students last fall, Rice raised its no-loan threshold from $60,000 to $80,000 and capped the total amount of loans that entering, eligible students are required to take out over four years at $10,000, down from $14,500. While some peer universities are cutting back on financial aid this year, Rice is sustaining those policies this fall. In fact, we are increasing financial aid by $10 million over the fiscal year 2010 budget.

While Rice's tuition has continued to increase over the past decade, our financial aid has increased also, which has minimized the net cost increase to students. And although Rice did not begin charging tuition until 1965, we still charge $5,000 to $6,000 less per year than virtually all of our peer institutions.

Rice is also sensitive to the needs of its faculty and staff. Last year only Rice employees making less than $60,000 a year received pay increases. This year, we are providing small increases to ensure that hard-working employees know they are valued. Yes, tuition increases help make that possible.

We are instituting a 5 percent budget cut for the coming fiscal year, on top of a similar reduction for the current fiscal year, but our goal throughout has been to minimize layoffs and protect our educational programming. We have sustained the construction projects that, in addition to the buildings mentioned earlier, have added research and classroom space critical to our academic mission and our students' education.

We're expanding our undergraduate student body by 30 percent, which in itself brings in more tuition revenue, but we will still be the second-smallest school in the Association of American Universities. Our students enjoy the stimulating experience of a major research university and the intimacy of a small liberal arts college. That is why Princeton Review and Kiplinger rate a Rice education as one of the top values in the country.

Tuition is an important issue and deserves a more thorough and thoughtful discussion than your editorial provided. We can only encourage the Thresher editorial board to put more work and thought into its opinions. Ask questions, challenge assumptions and contribute to more informed discussion on our campus.

Kathy Collins

Vice President for Finance

Chris Muñoz

Vice President for Enrollment

Note from the Editor: We stated in our Feb. 26 editorial, "Concurrent with the tuition announcement, Rice announced plans to increase financial aid by 16 percent. While we commend the university for extending its financial aid offers, we cannot help but wish these increases were unnecessary."

Online only: Clique behavior exceptions at Rice

To the Editor:

I was quite disappointed to read last week about Nadia Khalid's unfortunate experiences to date at her college ("Clique behavior pervades college system," March 12). In my several years as a community associate, I must admit that I, too, have witnessed cliquish or unwelcoming attitudes from time to time. But I can also attest from my experience that these are isolated events. Fortunately, I believe that the disrespectful manners cited in the article are exceptions, not the rules, of how Rice students conduct themselves. If any student feels differently, or experiences a similar situation as Ms. Khalid, then please come sit with me at one of the many tables on campus - for a meal at McMurtry College, a cup of coffee at the Brochstein Pavilion, studying at Fondren Library or the like.

Susannah Koontz Webb

McMurtry College associate

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