Statement of Patrick T. Kirby, Ph.D.
Vice President/Dean of Enrollment Services
 Westminster College
Fulton, Missouri

Committee on Education and the Workforce
Subcommittee on 21^st Century Competitiveness

July 10, 2003

 "Affordability in Higher Education:  We Know There’s a Problem; What’s the Solution?"

Good Morning!  My name is Pat Kirby.  I am the dean of enrollment services at Westminster College, founded in 1851 in Fulton, Missouri, now a town of 12,000 residents.  Many people remember our college as the site of Winston Churchill’s famous "Iron Curtain" speech in 1946, and now the home of the Winston Churchill Memorial and Library. Westminster is a liberal arts and sciences college, nationally recognized by organizations such as the Carnegie Commission, U.S. News and World Report and the Washington Post. In fact, the Washington Post just recently listed Westminster as a Top 20 "hidden gem" among U.S. colleges and universities.  A large portion of our current students come from Missouri, Arkansas, Illinois, Kansas, Oklahoma, Tennessee and Texas.  International students make up 5% of our enrollment. 

Thank you again for the invitation to share some views on this topic of great mutual interest: AFFORDABILITY.  Your Subcommittee has identified one of the greatest issues facing many college students and their families today, and, in turn, colleges and universities. The ramifications of ever-increasing costs for higher education are certainly far-reaching and multi-layered. It is my hope that our recent experience with a successful tuition reduction plan at Westminster will serve this Subcommittee as a helpful case study of one possible path toward the types of solutions you are seeking.

In the past decade, Westminster, like many private colleges, has struggled with the same issues on which your Subcommittee is now focused.  If we could make our college more affordable, could we enroll more students and simultaneously provide more choices to these students who are seeking a post secondary education?  We felt strongly that if we addressed and solved the affordability issue, we could accomplish these over-arching goals and likewise reap positive benefits for the College. So, we embarked upon some targeted research, detailed planning, and admittedly, some calculated risks. That preparation resulted in our October 2002 announcement of our Tuition Reduction program, which took effect for any new Westminster students planning to enroll for the upcoming Fall 2003 semester.

Following is an overview of some of the major elements we considered, the mindset we utilized, and the milestones we encountered. First of all, here are some of our underlying guiding principles that were necessary for this Tuition Reduction program to work at Westminster College:

For example, Westminster College was fortunate to have the room to carefully grow our enrollment and to be more cost-effective when utilizing our facilities, personnel and programs, all while staying committed to more student diversity and retaining the academic and personal/social advantages that a small college offers to its students, faculty and staff.  Westminster College’s new $18 million, 80,000 square foot Wallace Coulter Science Center gives us the academic space to grow our enrollment.  We have the physical space for new housing for students.  The support from our 44-person Board of Trustees and 8,000+ alumni has allowed our College to weather the financial challenges that most colleges and universities are facing today. 

Initially, the idea for a Tuition Reduction program came from Kurt Kindschi, a consultant from the higher education consulting firm of Noel-Levitz. After examining our enrollment and financial aid data for the previous three years, Kurt’s conclusion was, despite the good things the college had to offer, many people had the impression that Westminster was overpriced and thus not affordable to as many students as we wanted (and needed) to enroll.

We also knew, from follow-up surveys with students who did not choose Westminster College, that their primary reasons were "affordability" and "size."  Sticker shock was mentioned too often; we could not ignore these warning signs.  Further, a study commissioned in the spring of 2002 by the Art and Science Group, a research company in Baltimore, found that the economy had an effect on the decision of 50% of college students looking at four-year private colleges and universities. 

By making our College more affordable, we thought we could increase our enrollment and simultaneously broaden the socio-economic backgrounds of our students on campus.  Thus far, that is exactly what is happening for our Fall 2003 enrollment!  We are now expecting the largest enrollment in our College’s 152-year history, bolstered by a much larger freshman class. And, this is in the midst of a tough economy for many students and their families!

Over the past ten years, the rise in college tuition has outpaced increases in both family earnings and the Consumer Price Index.  Most research states that "costs" are reducing student’s options for higher education and that most private schools are not affordable for most families.

Simultaneously, state financial aid programs have not kept pace with the cost of living changes.  In our state of Missouri, for example, the Bright Flight Scholarship that goes to academically outstanding students regardless of financial need, has been $2,000 for nearly 15 years.  Likewise, the Missouri Gallagher Grant, for students who do have financial need, has been $1,500 for nearly 20 years.  The federal Pell Grant program -- much appreciated by so many needy students -- is now at a maximum of $4,050…and has also not kept pace with inflation since its inception.

Admittedly, eligibility for federal and state financial aid programs impacts students differently.  But what has occurred in the past decade is that students and their parents must use more of their own resources to finance the student’s education.  That would be okay if families have those resources, but a large proportion of families do not.  Many more students now borrow funds from state and federal loan programs to meet their costs.  And many private colleges and universities, in their ever-challenging need to maintain enrollment numbers and operating income, feel compelled to use more financial aid to offset higher tuition for students.

At Westminster College, using more and more of our financial aid to offset higher tuition was a double-edged sword.  Increasing financial aid led to higher tuition – which in turn created the need for more financial aid.  The result was an endless spiral of increased costs, much of which was absorbed by parents and students.  By reducing tuition, we have made the college more affordable to more families, and simultaneously increased our enrollment.  For Fall 2003, our Tuition Reduction program works for most students applying to Westminster College because the annual comprehensive costs (tuition, room, board and fees per year) are now about $3,800 less than last year’s costs (i.e. before our Tuition Reduction program).   The per-student decrease in tuition revenue for the College is offset by the overall revenue increase from a larger enrollment. In other words, we made up the difference by increasing our volume.

Frankly, our Tuition Reduction program will probably not work for most public colleges and universities.  Most of these state institutions have full enrollments and serious budget problems.  But, here is a somewhat unique perspective and question to consider: what if just a portion of the 1800 private colleges and universities could absorb some of these students and relieve some of the burdens faced by public universities?  It would allow public universities to reduce their budget problems as private colleges and universities absorbed more of these students. There is no question all colleges and universities must reexamine our missions, goals and responsibilities to our "publics" and to become more cost effective. We must all make better use of the limited resources available to us.

We are only one private college, but we serve as a leading example of what private colleges have to offer.  Our 16:1 student/faculty ratio keeps classes small, interactive and seminar oriented.  Students can get the classes they need and graduate in 4 years, not 5 or 6!  Our faculty members are full-time and extremely dedicated, whose priorities are excellent teaching and a thoughtful, personalized approach to advising.  Of course our faculty members do research and write books and journal articles, but teaching (and their students!) is their top priority.  We have no graduate students or Teaching Assistants on our campus.  Westminster College’s strengths are its people – the students, faculty and staff, and the relationships they build together that are mutually beneficial.

We also sponsor additional resources on our campus, such as the Center for Teaching Excellence and the Center for Leadership and Service. In the last 3 years, Dr. Fletcher M. Lamkin, our current president and a retired Brigadier General and former Academic Dean at West Point, has helped the college refine its core mission in higher education and has taken an unapologetic approach to emphasizing the importance of leadership, character and values-based educational opportunities throughout our college.  Our hallmark values are Integrity, Fairness, Respect and Responsibility.  Moreover, we help our graduates to become "leaders of character" who pursue lives of Success, Significance and Service. 

I am a graduate of a large public university, but I remain convinced that smaller private colleges and universities have as much, if not more, to offer to students for their undergraduate education. And we could be role models for being more cost effective!

One of the greatest strengths of the American system of higher education has been its diversity of institutions -- around 4,000! Almost half of them are private institutions.  If many students cannot seriously consider various types and sizes of colleges, we all are disadvantaged.  Making all colleges and universities more affordable is perhaps unlikely.  But, to the extent we can journey closer toward that goal for a larger proportion of our students, our entire country will benefit.  There is no greater insurance for our freedom and way of life than an educated citizenry. 

Thank you for making "college affordability" a high priority for your Subcommittee.  And, thank you for this opportunity to share what Westminster College has done to make higher education more affordable to prospective students, while simultaneously improving the College’s economic situation and enrollment trends.  I will be happy to answer your questions.