Archive for the recession Tag

Survey: More college presidents make millions

The club of private college and university presidents earning seven figures is getting less exclusive. Thirty presidents received more than $1 million in pay and benefits in 2008, according to an analysis of federal tax forms by The Chronicle of Higher Education . More than 1 in 5 chief executives at the 448 institutions surveyed topped $600,000. Most of the pay packages were negotiated before the full force of the recession. But even if the numbers dip slightly in next year’s survey, executive pay is expected to keep climbing over the long term as colleges compete for top talent. And schools are rewarding executives while raising tuition, exposing themselves to criticism. At large research universities, the median pay was $760,774; it was $387,923 at liberal arts colleges and $352,257 at undergraduate and graduate colleges and universities. The highest paid executive in the Chronicle survey was Bernard Lander, an Orthodox Jewish rabbi and sociologist who founded Touro College in New York in 1970. He died in February at 94. Lander received a compensation package of nearly $4.8 million. In a statement, the college said $4.2 million of that was retroactive pay and benefits awarded after an outside consultant determined Lander had been “severely underpaid.” Several deals reported the Chronicle survey, which covers the most recent available data, included deferred compensation or other unusual circumstances. Comparisons to past years aren’t possible because of changes in how data is reported to the Internal Revenue Service . Colleges were asked to report salaries by calendar year instead of fiscal year as in the past, so most dollar amounts overlap with what was reported the previous year. Another change: Perks including first-class air travel, country club dues and housing are now included in reported pay. In 2007-2008, 23 presidents received more than $1 million. As recently as 2004, no college president had broken the seven-figure threshold. While some presidents on the latest list lead ultra-selective schools such as Columbia, Yale and Penn, executives from schools such as the University of Tulsa and Chapman University in Orange, Calif., are on it, too. Not all the most elite schools are represented, either. The presidents of Harvard, Princeton and Johns Hopkins all were paid in the $800,000s. “Value is in the eyes of the beholder,” said Jeffrey Selingo, editor of the Chronicle . “Some boards think these presidents, even at small institutions, are worth it. On the flip side, the prestige of serving at other institutions is enough of a paycheck for some.” Still, numbers in the tax forms don’t always tell the whole story. Chapman University President James Doti’s $1.25 million compensation includes two “golden handcuff” deferred compensation deals worth almost $665,000, spokeswoman Mary Platt said. She said the board did not want to lose Doti, who since taking the job in 1991 has raised the school’s profile and overseen expansive building projects. He and other college presidents have donated a portion of the earnings back to the college. Doti gave a $1 million gift for an endowed chair in economics. David Warren, president of the National Association of Independent Colleges and Universities, said in a statement that salaries reflect supply and demand, and that presidents’ jobs have become more demanding. Presidential salaries make up a very small percentage of campus budgets and have virtually no impact on tuition increases, Warren said. Still, public confidence in higher education erodes when tuition and presidential pay are both rising, said Patrick Callan, president of the National Center for Public Policy and Higher Education. “People see higher education as another institution that takes care of the people at the top first,” he said. According to the College Board , average tuition and fees at private colleges and universities have risen almost 35% in the past decade, to $27,290. Many students, though, pay much less because of grants and tax benefits. The average net price at private schools was $11,320 this fall, less than what students paid on average a decade ago. Public college presidents generally earn less than their private counterparts. Only one public university president topped $1 million in 2008-09 — Ohio State University president Gordon Gee brought in $1.5 million. Then there are for-profit colleges, which are under fire for their heavy reliance on federal student aid money and high student loan default rates. Strayer Education Inc. paid chairman and CEO Robert Silberman $41.9 million last year, according to a Bloomberg report last week. Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

College study abroad suffers its first decline

The number of U.S. students earning college credit abroad dipped in 2008-09, the first decline in the 22 years since the data have been tracked, a State Department-funded report out today shows. The dip is mostly due to the recession. The economic downturn also may have accelerated a trend in which students increasingly travel to less traditional destinations, says the report, based on a survey of about 3,000 colleges by the Institute of International Education , a New York-based non-profit organization. Europe still attracted the largest share of U.S. students — more than 140,000 — but enrollments dropped 4%. They rose in Africa (16%), Asia (2%) and South America (13%). That growth was fueled in part “by new and sometimes more affordable” programs in developing countries, the report says. “The economic situation around the world, not just the U.S., is clearly having an impact,” says Peggy Blumenthal, executive vice president of the institute. Although the 2008-09 figures are the latest available, there are signs that the most recent year has begun to see an uptick in U.S. students going abroad. For those who didn’t go abroad, money wasn’t the sole factor. Mexico ‘s H1N1 virus outbreak probably contributed to a 26.3% decline in the number of U.S. students studying there, the report says. Also, many colleges pulled programs there based on State Department advisories about drug-related violence along the border, Blumenthal says. Family finances and campus budgets were top concerns. “I heard stories about parents losing their jobs and students who would really like to go, but could not afford it,” says Howard Davison, a program coordinator for at Central Penn College in Summerdale, Pa., who canceled a 2008 student trip to Ireland. State Department Assistant Secretary Ann Stock said study abroad is an important part of making U.S. students more world-conscious. “In a globalized economy, this just makes sense for our young people and our country,” Stock said of student travel to more diverse locations. Among the highlights of the institute’s “Open Doors” report: •260,327 U.S. students earned credit for study abroad in 2008-09, the latest year for which comprehensive data are available. That’s more than double the number from a decade ago but down 0.8% from the previous year. • In a “snapshot” survey last month of 238 colleges, 55% reported an increase in the numbers of students going abroad last fall, a sign that the 2008-09 decline could be a short-term blip. •A similar slowdown occurred among foreign students enrolling in U.S. institutions last year. Enrollments increased 3%, to 690,923, and pumped about $20 billion into the U.S. economy, according to Commerce Department estimates. However, the growth was driven primarily by a 29.9% surge among Chinese students; more than half of countries that send large numbers of students to the USA showed decreases. Some, such as Davison, say they are hopeful that things are turning around. He took nine students abroad last year, and returns today from seven weeks in Croatia with 17 students. They “have had their horizons not only expanded, but exploded,” he says. “Students come back from this program with a new confidence.”

For-profit college stocks tumble

NEW YORK (AP) — Investors fled for-profit college stocks on Thursday after the sector’s bellwether predicted a 40-percent drop in student enrollment next quarter and withdrew its forecast for next year. The news chilled an industry facing increased government scrutiny over concerns about soaring student loan defaults. Enrollments at for-profit schools surged during the recession. Big advertising budgets drew students trying to bolster their resumes as a hedge against high unemployment. But critics claim the schools are not helping students find better jobs and say enrollment counselors sign up many students who are unprepared for higher education. When they drop out, they are still stuck paying back their student loans. CLOSER LOOK: For-profit colleges under fire over value, accreditation Apollo Group Inc ., which runs the University of Phoenix , attributes its expected enrollment decline to changing practices aimed at satisfying new government regulations. Apollo will no longer pay its counselors bonuses based on how many students they enroll. It also will provide new students with a free three-week trial program to see if they are ready for school, weeding out those at risk of leaving school before earning degrees. Meanwhile, the industry is facing a proposed new rule from the Department of Education that could limit schools’ access to federal financial aid — the bulk of their revenue — if graduates’ debt levels are too high or too few students repay loans. And, many schools are close to maxing out how much revenue they can receive from federal financial aid resources. Federal regulations cap that amount at 90%. The industry averages 83%, largely because they focus on recruiting lower-income students who qualify for federal Pell Grants . “Now, they have to slow down enrollment and be less active in targeting these students. They have to go back to the more traditional students who are working adults,” said Matt Snowling, an analyst at FBR Capital Markets. In afternoon trading, shares of Apollo tumbled $12.64, or 26%, to $36.86. The rest of the sector followed suit. Education Management Corp. shares lost $2.70, or 20%, to $10.57. DeVry Inc . fell $8.67, or 17%, to $41.90; Corinthian Colleges Inc . decreased $1.16, or 19%, to $4.86; ITT Educational Services Inc. dropped $10.58, or 16%, to $55.34; Career Education fell $3.29, or 16%, to $16.898; Strayer Education Inc. declined $21.21, or 14%, to $135.84. Shares of newspaper publisher Washington Post Co., which owns the Kaplan school chain, slumped $34.61, or 8.1%, to $394. Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Study: Families saving for college aren’t always choosing best options

DES MOINES — Parents remain determined to save money for college even in the tough economy, but they’re not always choosing the methods that give them the best bang for their buck. The nation’s leading college lender Sallie Mae released Tuesday its second annual study of college students and parents conducted by Gallup. It shows 60% of parents have saved money for their child’s college education, about the same as a year ago. However, it is surprising that nearly a quarter of all college savings has been set aside in retirement accounts including 401(k)s or individual retirement accounts, said Sarah Ducich, senior vice president for public policy at Sallie Mae. The typical family saving for college has amassed an average of $28,102 and is projected to have saved $48,367 by the time their child reaches age 18. DEBT: Student loan debt exceeds credit card debt in USA YOUR MONEY: Student loan program changes affect rates, repayment The problem with relying on retirement accounts is that when money is withdrawn before age 59 1/2, the accountholder must pay taxes on the funds as well as a 10% penalty. As an alternative, some families are choosing to take out a loan against a 401(k) account. This is also problematic because it removes a portion of the retirement fund, reducing the potential for growth. Also there’s the possibility that the loan will need to be repaid quickly if the accountholder changes jobs. Whether an outright withdrawal or a loan, either way, parents are shortchanging their retirement savings potential, Ducich said. An additional disadvantage to using the 401(k) for college savings is that the money withdrawn this year counts as income for the parents. This means that when the family applies for financial aid the next year, that amount will be included in income, reducing potential aid. Of course not all savings is held in retirement accounts. About 21% of money set aside for college is in investments and 14% sits in general savings accounts, which return very little interest. About 12% is held in dedicated college savings 529 accounts. A few responses in the 2010 study show signs that economic pressures have affected how families are setting their savings goals. About 72% of parents say they expect to pay half or more of their child’s education costs, but that is down from 79% a year ago. Also, fewer parents intend to pay most of the cost with 27% saying that this year, compared with 33% in 2009. That’s one more indicator that the recession has forced people to make decisions about their money, said Bill Diggins, a senior consultant at Gallup Inc., who helped conduct this year’s survey. Economic confidence has dropped over the last couple of years and discretionary spending has gone down and continues to fall. Savings rates however, have increased. Diggins said Gallup research indicates about two-thirds of those who are saving more say it’s a permanent change. “We’re finding people will pay for and sacrifice for things they value,” Diggins said. “It’s clear from these studies that they continue to place a high priority on college for their kids.” The study illustrates that point with 21% of parents saying college savings is their most important savings goal, up from 14% in 2009. Saving for retirement fell to 22% as the most important savings priority from 27%. About 38% of families said they are saving the same this year as last year and 34% said they are saving less. About 28% boosted their savings. The study also shows that families understand the need to start early. The average age when parents began a college account is about 3 years old. It’s important now to educate parents on the most efficient ways to save, Ducich said. The dedication to help children obtain a college education is there, it’s now a matter of helping families put that savings to work balancing earning potential with safe investments that help them reach their goals. Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Women close in on male-dominated fields

The gender gap among college majors once dominated by men is narrowing, and younger generations of women account for nearly half of science and business graduates, a USA TODAY analysis of new Census data shows. In 2009, about 47% of science and engineering degree holders ages 25 to 39 were women, compared with 21% among those 65 and older. For business majors, about 48% of younger graduates were female — more than double that of older generations. MAP: Participation in 2010 Census FULL COVERAGE: Census 2010 VIDEO: 10 strange facts about the Census The data, released Tuesday in the government’s annual American Community Survey, come as women this year for the first time outnumbered men in the nation’s workforce of 130 million. “Larger percentages of these professions are attracting women,” says Betty Shanahan, executive director of the Society of Women Engineers. But, she says, disparities persist among strictly engineering majors, where more than four in five are men. In the sciences, women account for a majority of graduates in psychology and the biological sciences, 2007 data from the National Science Foundation show, but trail in engineering and computer science, around 18% of both majors. “Girls see (engineering) as a very ‘white male’ profession, which it is, and they don’t get messages about how they can balance their personal lives and a very exciting career,” Shanahan says. This Census tallied, for the first time, the number of bachelor’s degrees among women and men 25 years or older. Among all majors counted — humanities, business, education, science and engineering — women under 40 had greater parity among men when compared with older generations of Americans. Still, gender pay inequities persist in the workforce: Among full-time workers in 2009, the new Census data show a woman’s median earnings were roughly 78% of a man’s ($35,549 compared with $45,485). Newer Labor Department figures from the second quarter of 2010 show women earned about 83% of a man’s median weekly wage. Overall, the new Census data show more Americans are earning college degrees, a likely byproduct of the recession. Those with a bachelor’s degree or higher rose from 27% in 2006 to almost 28% in 2009.

U.S. colleges see highest enrollment jump in 40 years

WASHINGTON (AP) — The nation’s colleges are attracting record numbers of new students as more Hispanics finish high school and young adults opt to pursue a higher education rather than languish in a weak job market. A study released Wednesday by the Pew Research Center highlights the growing diversity in higher education amid debate over the role of race in college admissions and controversy over Arizona ‘s new ban on ethnic studies in public schools. ADMISSIONS: Colleges urged to use affirmative action based on economic class Newly released government figures show that freshman enrollment surged 6% in 2008 to a record 2.6 million, mostly due to rising minority enrollment. That is the highest increase since 1968 during the height of the Vietnam War, when young adults who attended college could avoid the military draft. Almost three-quarters of the freshman increases in 2008 were minorities, of which the largest share was Hispanics. HISPANIC HIGHER ED: College success is all in the family VIDEO SERIES: ‘Non-traditional’ students struggle to complete degrees The enrollment increases were clustered mostly at community colleges, trade schools, and large public universities, which tend to have more open admissions policies and charge less tuition. Still, the gains in minorities were seen at almost all levels of higher education, with white enrollment dipping to 53% at community colleges and 62% at four-year colleges. Preliminary government data show freshman college enrollment continued rising in 2009 to fresh highs, but demographic breakdowns were not yet available. “The nation is moving beyond whether minorities have access to post-secondary education,” said Richard Fry, a senior researcher at Pew who wrote the report. “The question increasingly is not ‘which youth go beyond high school?’ but ‘who goes where?’” California, the District of Columbia, Arizona, Alabama and Nevada had the largest freshman enrollment increases in 2008, with gains ranging from 11% to 21%. States registering declines included Minnesota, Nebraska, Delaware and Oklahoma, which dropped as much as 5%. Demographers say much of the college enrollment gains reflect the nation’s rapidly changing demographics, in which 43% of all students in K-12 are now minority. But the recession, too, is adding to the increases as more high school graduates — primarily Hispanics — enroll immediately in college rather than take their chances in the labor force. Among the findings: •Freshman enrollment of Hispanics in higher education jumped by 15% in 2008, compared to 8% for blacks, 6% for Asians and 3% for whites. •The share of 18- to 24-year-olds who earned a high school diploma reached an all-time high of 85%, up from 84% in 2007. Among Asians, the number was 92%, whites 90%, blacks 79% and Hispanics 70%. •Colleges showing the largest freshmen increases included Fresno City College in California, jumping 448% to 2,998 students; Arizona State University, rising 21% to 8,458; and American Public University System in West Virginia, increasing 332% to 121 students. The findings add to the burgeoning debate over the role of race in America amid a steady rise in the minority population that is expected to make them the new American majority by mid-century. In Arizona, Gov. Jan Brewer last month signed a measure banning ethnic studies courses in public schools if they serve to promote racial solidarity or are designed primarily for students of a particular race. Several minority groups have praised Supreme Court nominee Elena Kagan , who as solicitor general authorized the filing of a brief by the Justice Department defending the constitutionality of the University of Texas’ affirmative action program that considers race in undergraduate admissions. The case, still pending, is expected to be appealed to the Supreme Court. Fry noted that minority enrollment appeared to be concentrated in the “basic tiers” of higher education, such as community colleges and trade schools. It is not clear whether gains occurred in more selective four-year colleges, which often use affirmative action to promote diversity. In addition, while Hispanics have seen recent gains in college enrollment, they still lag overall. Hispanics make up roughly 12% of full-time undergraduate and graduate students, compared to their 16% representation in the total U.S. population. “These findings are only half reassuring,” Fry said. “Many Hispanic teens still are not graduating high school, and the high school gains may not be sustained when the teen labor market revives. It also remains to be seen how many of these additional minority freshmen will actually complete degrees.” Pew, an independent research group, based its findings on 2008 data from the Census Bureau and the Education Department. The figures for “white” refer to those whites who are not of Hispanic ethnicity. Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Job outlook brightens for new grads, but barely

To get a sense of the job market new college graduates face, consider the latest crop of nurses from Santa Rosa Junior College . Just eight of the 55 students are leaving with job offers — and that’s considered good news. Last year, no graduates of the California community college’s associate degree nursing program had a job in hand. “We’re excited that finally something is happening,” said Sharon Johnson, the program director. This year’s slightly better performance is one of many signs around the country that 2010 is a better year than 2009 for landing that first job out of college — but not by much. New nurses are looking for something — anything — as the down economy has slowed retirements in their otherwise promising field. Teachers also face intense competition for positions that in their case have been made scarce by state and local budget cuts. Even graduates with sought-after degrees had less than sizzling prospects. Fewer than half of U.S. accounting majors could boast job offers this spring, one study found. There are signs of life. Employers plan to hire 5% more new college graduates this year than they did a year ago, according to the National Association of Colleges and Employers, which also polled the future accountants. The road to recovery appears long, however. In 2007, about two-thirds of soon-to-be graduates in the association’s student survey reported having job offers in hand that spring. Just three years later, about 40% could say that. “It’s been a little depressing,” said Lauren Wiygul, who will earn a master’s degree in secondary English education from Vanderbilt University in Nashville, this summer. She applied to more than a dozen private schools and every public district in the Atlanta area. After someone in human resources for the system in Georgia’s Gwinnett County mentioned a possible language arts opening, she took a day off work, traveled to Atlanta and personally delivered her resume to 13 middle and high schools, hoping to introduce herself to principals. She met a lot of sympathetic secretaries but not one principal. She has yet to get an interview. “One principal, she wasn’t rude, but she just e-mailed back, ‘Positions are posted on our website,’” Wiygul said. “I have worked really hard to be able to teach. I just feel stuck.” Education majors have it toughest of the 2010 grads surveyed by the association of colleges and employers. Fewer than one in four had received job offers this spring. The list of least sought-after majors included the physical sciences (such as chemistry and physics), languages, English, history or political science and journalism. Along with perennially popular accounting, the most attractive majors to employers were business administration, computer science, engineering and mathematics. The private sector outlook didn’t improve last week when the Labor Department announced U.S. businesses added just 41,000 jobs in May, an indication employers are not yet ramping up hiring despite other signs of economic recovery. The department offered better news Tuesday, saying job openings rose in April to their highest level since December 2008. Some college career counselors report encouraging signs. Trudy Steinfeld, executive director of New York University’s Wasserman Center for Career Development, said banks and consulting firms that were invisible a year ago are “staffing up like crazy.” But at the University of Texas at Arlington, associate director of career services Cheri Butler is advising students shut out of bank jobs to seek finance department positions in government, health care and education. Wayne Wallace, director of the University of Florida’s Career Resource Center, said that regardless of the field, the watchwords for new graduates are patience, flexibility and short-term sacrifice for long-term gain. “Graduates, if they are willing to be geographically mobile and reasonably flexible about what they’re willing to do to start out, tremendously increase their odds for success,” he said. Indiana University’s Kelley School of Business devised a plan to improve the chances for graduates in its residential master’s in business administration program. It included a dean’s letter to 26,000 alumni, an electronic booklet featuring students’ resumes and a job bank run by students with jobs for those still searching. That last effort was dubbed “The Lonely Hearts Job Search Club.” “A simple plan, delivered to the right people with a clear objective, can go a long way in helping students during a challenging economy get to where they want to be,” said Erik Medina, the school’s director of graduate career services. Last month, 74% of students had job offers at graduation, compared with 66% last year, he said. For nurses, the long-term forecast is excellent. The U.S. Bureau of Labor Statistics projects 22% job growth for registered nurses by 2018 as baby boomers age and nurses emerge as cheaper primary care alternatives to doctors. But for now, jobs for new nurses are relatively scarce. More experienced nurses are putting off retirement or working extra hours, some because their spouses have been laid off, nursing school officials say. “I look at this like an air pocket,” said Marla Salmon, dean of the University of Washington School of Nursing. “The fact is we’re still climbing in terms of the number of nurses needed. But the recession has definitely slowed hiring.” Salmon said she is encouraging graduates to think creatively. That could mean residencies — part of a doctor’s career path but a relatively new development in nursing — and mentored job-sharing arrangements. The tough market has caused some nursing graduates to lower their expectations, accepting jobs in long-term care and community health centers rather than top research hospitals. Corey Fry, who will graduate this week with a master’s degree from the highly regarded University of California , San Francisco School of Nursing, cast his search for nurse practitioner jobs nationwide. He’s joined professional organizations and honed his networking skills. After reading an article by a University of Maryland nurse practitioner, he sent the author an appreciative e-mail and attached his resume. He has a phone interview there this week, and leads in St. Louis and Oregon. “We’ve talked as classmates and we all agree our first job might not be our perfect job, but we need to get that first job,” Fry said. “Then you can move beyond that if you need to.” Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

When even low tuition is too much

Cam Holmes graduated from Tulsa Community College on Friday – and she says that, but for a program created three years ago, she never would have done so. In 2007, the year she graduated from high school, Tulsa Community College created Tulsa Achieves , which waives tuition for many local residents. That year, Holmes was among 1,357 first-time freshmen from local high schools who participated. Overall, first-time freshmen enrollment at the college rose by nearly 400 students from the year prior. College officials attribute this steep enrollment growth to the program, arguing that it has attracted many students to the college who otherwise would not have considered it an option for them. TUITION-FREE: Military, engineering, specialty colleges stand ground against costs BEST VALUE COLLEGES: Top 100 for 2010 “I didn’t know where I wanted to go to college or even if I could have gone to college,” said Holmes, 21. “My G.P.A. wasn’t that high, and I just didn’t apply myself in the way that I do now.” Holmes credits Tulsa Achieves with giving her direction – she plans to transfer to Oklahoma State University in the fall, and to major in broadcast journalism – as well as the finances to afford her first two years of college. She already qualified for Pell Grants, but Tulsa Achieves took care of the remainder of her costs. She said that the program has changed some of her neighbors’ mindsets about attending college. “Some of them feel a different attitude about college and importance of it,” Holmes said. “I know I’ve talked to some people who are new to the program, and they kind of had the same situation I had – people came out of high school not knowing what they want to do.” At a time when community colleges are being urged to attract and to graduate more students, Tulsa Achieves suggests that price matters — even with relatively low-cost institutions. But it also shows that community colleges may be able to waive tuition for many students without breaking the bank. Through a mixture of financial aid, private donations and state support, college officials say they have found a way to make up for the tuition these students would have paid, all while providing access for hundreds more students, boosting retention rates and further diversifying their campus. While tuition at the college – about $1,100 for a full-time semester of four courses – is relatively low, the effort suggests not only that there may be a critical mass of students for whom any tuition may be a hindrance but also that these students can succeed. ON THE WEB: Honors programs booming at 2-year colleges INSIDE HIGHER ED: Community colleges offer classes in ‘graveyard shift’ The college is the largest two-year institution in Oklahoma, serving about 27,000 students per semester. After state and federal financial aid is applied, the “gap-funding program” pays any remaining tuition balance for up to 63 credit hours for eligible students. Only Tulsa residents who graduate from a public or private high school or home school with a 2.0 grade point average qualify. To maintain Tulsa Achieves funding, students must retain county residency, take an orientation class within their first year, complete 40 hours of volunteer service each academic year and stay in “good academic standing.” They must earn at least a 1.7 GPA when they have 30 credit hours or less and at least a 2.0 GPA when they have 31 credit hours or more. Furthermore, they must complete at least three credit hours each semester and complete at least 70% of all of their attempted coursework. The requirements reflect a number of the hot ideas in the discussion about community colleges’ “completion agenda”: that many students need to be taught to study, that efforts to connect students to the college in multiple ways are key to retention, and that avoiding missed semesters is key. Localized programs that help high school students cover the cost of college tuition, like Tulsa Achieves, are not new. For example, Kalamazoo Promise , a program in Michigan that is funded by a small group of anonymous donors, has helped more than 1,100 of the city’s public school graduates pay their tuition at any institution in the state since it began in 2005. Despite the success of such privately funded ventures, it is often hard for public entities such as local governments or colleges to establish and maintain similar tuition-waiver programs. Voters in Davenport, Iowa, for instance, rejected a program last year that would have given each of the city’s high school graduates a lump sum of $20,000 for use at any college or university of their choosing. Tulsa Community College officials said, however, that they have found such an effort affordable. To help maximize federal and state aid awards before institutional funds are used to pay for tuition, Tulsa Achieves students are required to fill out the Free Application for Federal Student Aid. Aside from this aid, the cost of Tulsa Achieves is kept down by students who qualify for Oklahoma’s Promise , a statewide program that waives public college tuition for those who come from families that earn less than $50,000 a year. The effort led to an immediate gain in Pell Grant funds, which increased by 50% in the program’s first year, to $450,000 — as more students enrolled and more applied for aid. Overall, the college is only paying full tuition for about 37% of those who enroll through the program. “The projections were on target,” said Tom McKeon, college president. “One of the primary reasons we’ve been able to do this is we’re one of only three community colleges in Oklahoma that receive local money. … And our tax base is large; we have 14 independent school districts. Local funding makes up a third of our operating budget. … That gave us a lot of flexibility. We feel we’re giving back to a county that’s been supporting us for 35 years.” This year, McKeon noted, Tulsa Achieves cost the college $4.6 million, less than 6% of its operational budget. He said that this is “considerably less” than other community colleges in his state offer in scholarships. The local community has embraced Tulsa Achieves to such a degree, McKeon noted, that local residents and business owners have helped the college raise nearly $1.2 million for a “textbook trust.” In this way, deserving students can also have their textbooks paid for without having to dip any further into institutional funds. McKeon believes the college’s financial planning for the program will keep it around for a long time. “We’re committed to our promise,” McKeon said. “It’s not created a financial hardship for our institution, even in the midst of this recession; we’ve had to cut our budgets just like everyone else. But we’re seeing improvement out there; house prices are steady and unemployment is going down.” Matt Short, college financial aid director, sees other benefits. For example, he noted that the college’s annual loan volume decreased by nearly 1,000 loans when it launched Tulsa Achieves and that “is almost certainly correlated very closely to the 1,300 odd freshmen that did not have loans packaged on their awards that year for the first time.” Lauren Brookey, college spokeswoman, noted that, since the program started, its 4,342 participating students have completed more than 92,000 hours in community service. She added that the Tulsa Achieves has also helped the college reach out to minority and other “underserved” students. “We call this the ‘no excuses scholarship,’ ” Brookey said. “It helps spread the word and get more people to go to college. The simplicity of the program, we think, makes it easy for us to tell students that they have no reason not to go to college.” Tracey Medina, for example, is the first in her family to go to college, and she credits Tulsa Achieves with getting her there. “My parents told me that they would help me as much as they could, but they didn’t think it was going to be possible to pay for college,” the 19-year-old said. “Now that I’m here, they are very proud of me because I’m a first-generation college student and I’m helping other students enroll at the school. The rest of my family, especially my nieces and nephews, really look up to me now and always ask me all about college.” Tulsa Achieves has already influenced the creation of another program in Knoxville, Tennessee called knoxAchieves , which will give 500 Knox County public high school graduates up to $3,000 annually for community college tuition. McKeon also said that he has heard from some elected officials in his state of Oklahoma, who have ambitions of creating a statewide program.