In an April 24 meeting of the Vermont State College Board of Trustees, the decision was passed, in a vote of nine in favor to three opposed, to raise VSC tuition by 6 percent for the 2008-2009 school year.
The Board of Trustees report noted, “Unfortunately, as the Board is aware, the state of Vermont in terms of higher education appropriations continues to be one of the lowest funded of all states.”
In fact, the report continued, “For the last few years we were improving in regard to higher educational appropriations per FTE- we went from 49th to 48th to 47th back to 49th for two years. We are now 50th by a substantial margin.”
Johnson students can expect tuition to jump from $7,056 to $7,488 for in-state students and from $15,240 to $16,152 for out-of-state Johnsonians, according to this report. In addition, there will be a 1.96 percent increase for fees, and a 4 percent increase for housing and for board. This will bring the in- and out-of-state totals to $15,749 and $24,413, respectively.
The Board stressed that the decision did not come easily, and there was much discussion on the topic at the meeting.
The Board members did their best to express the reluctance they felt with making this decision.
Board member Martha O’Connor said it was “the most difficult decision we have to make, and I strongly support the motion and support the 6 percent... we have talked with students and they want the programs… and in order to keep the quality of the programs we have, we need to do this. Hopefully we won’t have to do this year after year after year, but there is no other choice as I see it at this time but to approve the 6 percent and I applaud the president, the schools … for keepingit at 6 percent.”
One member in strong opposition to the movement was Gordon Winters, who cited single parents and one-income families among those he was considering.
In the end, the movement was passed with much hesitation.
So, what does this mean for Johnson students?
According to JSC Director of Financial Aid Lisa Cummings, levels of financial aid as well as Pell and VSAC grants have increased. “Our aid packages will be very similar to what they have been in the past,” she said. “Nothing is being cut out of the financial aid budget or anything like that.”
One change, however, will be more counseling with parents to encourage use of the tuition payment plan. This interest-free plan allows families to set up a financial course by which they pay for tuition, in monthly payments, for example, so as to decrease student loans.
“That’s definitely there to help families,” she said.
For Don Vickers, president and CEO of the Vermont Student Assistance Corp. (VSAC), funding for higher education in Vermont remains problematic for a number of reasons.
“What the Legislature did was they borrowed from the education trust fund in order to provide UVM and state colleges and VSAC with a 2.5 percent increase in our base budget,” he said. “One of the drawbacks of borrowing from the trust fund is the money and the interest of the trust fund goes to all three entities every year for student assistance. So taking that $2.5 million out of the trust fund, if it’s not replaced in the future, will mean there’ll be less money for student financial aid going down the road.”
The “biggest hit” according to Vickers will be non-degree students; those looking for workforce training.
On a national level, Vickers said it would be harder for students to get access to loans, and those loans will come at a higher price, meaning borrower benefits will be affected.
“Most of our students have to borrow not only the maximum under Stafford loans, but also have to take out alternative loans. And nationally most alternative loan programs are pretty much shutting down, they won’t be available, and VSAC will have some funds available for alternative loans, we don’t know at this point whether it will be enough to meet the total demand.
“It’s not going to be easier and it’s not going to be less expensive for students entering college next fall, and that’s a combination of what’s happening to the economy and its impact on the Vermont budget, the economy and the credit market crisis and its impact on Washington and federal loan programs.”
Vermont students, Vickers said, have debt loads about 20% - 25% higher than the national average for a Bachelor’s Degree, as the Vermont State Colleges are among the most expensive in the country.
What can be done to increase public funding of higher education in Vermont?
Vickers said this is a matter of social priorities and public policy; students need to be active politically and make themselves acknowledged as a priority.
“The next generation of college students needs to speak out as much as my generation did on the Vietnam War,” he said.
In addition, being financially literate is essential. “I think if I was a Vermont State College student I would be aware of exactly what the education is costing me,” Vickers said. “And what I mean is not just what my tuition bill is, and my room and board bill, but what is the cost of that education with the way in which I’m going to finance it?”
The best way to be a knowledgeable borrower, for Vickers, is to understand debt, financing, and establish budgeting. “That’s as fundamental and as important in today’s society as learning to read,” he said. “The majority of students don’t have – I would include myself in that when I graduated from college – don’t have the level of financial literacy they need to deal with in the world they’re going to live in.”
Vickers said that people worried about their debt load can call and ask about debt sessions with VSAC.
As financial aid director, Cummings deals constantly with the realities of Vermont’s low levels of public support for its state colleges, and she too advocates activism, urging students to get involved with the government. “I encourage you, all students, anybody, to email, call, whatever it takes because we’re just as frustrated as students with why they’re not putting the money towards a future.”