Ycc Report Re Financial Aid Survey Findings Winter 09

8/8/2019 Ycc Report Re Financial Aid Survey Findings Winter 09

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Yale College Council Report re:Financial Aid Survey Findings (Winter 09)

27 FEBRUARY 2009


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Yale College Council Report re: Financial Aid Survey Findings (Winter 09) 18 February 2009 Pg. 1

Table of Contents

Introduction Pg. 2

Survey Information Pg. 4

Quantitative Survey Results Pg. 9

Qualitative Survey Results Pg. 18

Comparative Analysis re: Other Ivy League InstitutionsResponses to the Financial Crisis Pg. 26

Comparative Analysis re: Other Ivy League Institutions

Financial Aid Policies Pg. 32

YCC Recommendations Pg. 41


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A History ofAdvocating forChange

A SystematicEvaluation of theNew Aid Policy

Introduction

During the 07-08 academic year, the Yale College Council (YCC)conducted two survey reports with the aim of voicing student opinion on

financial aid at Yale. Conducted during November of 07, the firstsurvey revolved around an analysis of work-study at Yale. With a samplesize of 685 students, the survey revealed among other things that 49%of respondents had taken out a loan to cover their student contributionand 34% of all non-freshman respondents reported working over 10hours a week towards fulfilling their self-help contribution. With data inhand, the YCC moved to advocate Student Financial and AdministrativeServices for: (i) lower self-help contribution amounts for students; and(ii) the replacement of student loans with grand aid.

Conducted during December of 07, the second YCC survey aimed to

more systematically evaluate student opinion on financial aid at Yale.With the guidance of the administration and the help of the 07-08Freshman Class Council (FCC), the YCC under the leadership of 07-08 YCC President Rebecca Taber worked to gauge student opinion ona spectrum of potential changes to Yales financial aid. With a samplesize of 1,815, the survey found that students most desired increasedfinancial aid to middle-class and lower-class families, and an eliminationof student loans.

In January, the Yale administration after carefully considering both thefirst and second YCC report announced a policy that, at least on paper,

was highly correlated with the desires of the student body. Among other

things, the policy increased financial aid for both lower-income andmiddle-income families.

Using the progress of the 07-08 YCC as a starting point, the 08-09YCC aimed to systematically evaluate the effectiveness of the newfinancial aid policy. Given the exponentially deteriorating state of theeconomy, the Council also strove to measure the extent of the economiccrisis on Yale students, particularly in the context of financial aid.

Working via an ad-hoc committee, six members of the YCC conducted athird financial aid survey with questions revolving around theaforementioned topics.

After running the survey in the fall of 08, the committee worked for twomonths to analyze the quantitative and qualitative answers of the survey,in addition to conducting comparative research regarding the policies(and responses to the crisis) at comparable universities. This reportdetails our methodology and findings.



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The Committee

On behalf of the YCC and the Yale community, we voice our unequivocalappreciation of the steps Student Financial and Administrative Serviceshas taken to improve financial aid at Yale. The new financial aid policyhas been particularly helpful and effective in improving Yalesresponsiveness to student need and the day-to-day experiences of many

Yale students. With that said, after compiling this report, we have alsoidentified several areas of concern.

We respectfully urge the administration to consider the additionalchanges to financial aid proposed in this report. Additionally, we alsoencourage the administration to continue taking student opinion intoaccount when considering the details of any and all future changes tofinancial aid. We appreciate the commendable efforts made thus far bythe Yale College Deans Office, the Presidents Office, and SFAS in bothprogressively improving Yales aid package and including students in thedecision-making process.

The YCC looks forward to continue working closely with SFAS and allrelevant administrators as further improvements to Yales financial aidare considered.

Kevin Beckford, DC 11 (YCC Representative)Abigail Cheung, TD 11 (YCC Representative)Sabrina Karim, BR 11 (YCC Representative)

Elizabeth Ludwig, PC 10 (YCC Representative)Ioannis Legmpelos, JE 12 (FCC Representative)Richard Tao, SM 10 (YCC President)



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Background

Survey Questions

Survey Information

As stated in the Introduction, the new financial aid upon its

introduction appeared perfectly aligned with the demands of thestudent body. With the blessing of the University Director of Financial

Aid (Caesar Storlazzi), the YCC conducted a survey in fall 08 gearedtowards confirming the optimism of our initial observation. Given thatthis year is the student bodys first academic year under the auspices ofthe new aid policy, the Council views such evaluative work as especiallytimely and relevant.

From Thursday, November 6, 2008 to Wednesday, November 12,2008, the YCC ran its third survey on financial aid via the web surveyprovider Survey Gizmo. The survey was advertised to all undergraduatestwice, and contained questions regarding undergraduate opinion on not

only financial aid, but also academic minors and the YCC budget. Thefinancial aid portion of the survey was stipulated to survey takers asexclusively for students currently on financial aid.

Over the course of six days, 1,417 students participated in ourquestionnaire, providing highly relevant qualitative and quantitativeinformation regarding their thoughts on the new aid package. Theoriginal survey questions pertaining to financial aid, along with theirrespective answer choices, are as follows:

1. What year are you?

Freshman

Sophomore

Junior

Senior

2.Are you an international student?

Yes

No



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3.How has the current economic crisis impacted you and your family's abilityto pay for the cost of a Yale education?

Not at all Minimally Moderately Greatly Extremely

4.Please elaborate on your answer to the previous question:

[blank textbox]

5.How many hours per week are you working at a job this academic year?

0

1-5

6-10

11-15

16-20

21+

6.If you are working at a job this year, to what extent has it inhibited youracademic and/or extracurricular life at Yale this academic year?

Not at all Minimally Moderately Greatly Extremely

7.Please elaborate on your answer to the previous question:

[blank textbox]

ount of student contribution (self-elp) expected of you this academic year

8.In general, how do you feel about the amh ?

Note: This year's expected self-help contribution is $2,500.

Too Low Low Just Right High Too High



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9.Did you have to take out a loan this yearin order to cover your studentcontribution?

Yes

No

10. On average, how much do you spend - or expect to spend - on travelexpenses during the academic year?

Under $500

$500 - $1,000

$1,001 - $2,000

Over $2,000

11. On average, how many times do you go home - or expect to go home -during the academic year?

0

1

2

3

4 or more

12. On average, how many times have you wanted to go home - or want to go

home - during the academic year?

0

1

2

3

4 or more



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International Students vs. Non-International Students



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Effects of theEconomic Crisison Students

Quantitative Survey Results

In this section of our analysis, we report the quantitative results of the

survey. We will, specifically, be dividing up our analysis into thefollowing categories: (i) effects of the economic crisis on students; (ii)

work study & student contribution; (iii) loans; (iv) travel; (v) rankingall the potential changes; and (vi) general review of the new policy.

Once again, we administered the survey to the entire student body over aone-week period, and 1417 students completed the questionnaire.

Students were asked to describe the effect of the recent economic on theirability to finance their financial education. Among the results include thefollowing:

82.31% of respondents reported that the economic crisis has hadsome impact on their ability to finance their Yale education

47.21% of respondents reported that the crisis had at least amoderate effect on their ability to finance their Yale education

Question: What effect has the recent economic crisis had on your abilityto pay for your Yale education?



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Work Study &StudentContribution

(1322 students answered this question; 95 students skipped thisquestion)

Students were asked a variety of questions regarding their sentimentstoward work-study at Yale. Their responses show significantimprovement from previous years, but nevertheless illustrate some roomfor improvement. Of the results, the following stand out as particularlyinteresting and relevant:

62.06% of respondents reported being employed while pursuingtheir academic endeavors

42.84% of respondents reported working more than 6 hours perweek at a job

60.66% of respondents described that the expected studentcontribution for the 08-09 as either high or too high

Question: How many hours per week are you working at a job thisacademic year?




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Question: If you are working at a job this year, to what extent has itinhibited your academic and/or extracurricular life at Yale this academic

year?

*(1318 students answered this question; 99 students skipped thisquestion)

Question: In general, how do you feel about the amount of studentcontribution (self-help) expected of you this academic year?



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Travel Currently, SFAS allotts students $750 to travel to and from their homebefore, during, and after the academic year.1 An issue that was raisedduring our previous evaluation of financial aid was the lack of fundingallotted for students to travel to and from school. Among students thisyear, the issue was and remains one of substantial concern.

Given strong evidence of substantial student demand for change, weasked respondents two questions aimed at gauging their travel plans anddemand for more funding. The data appears to strongly substantiate theneed for increased funds towards travel:

Approximately 50% of respondents spend over $1,000 on travelexpense during the academic year, signifying a funding gap of atleast $250 for at least 50% of the student body

88.39% of all respondents reported expecting to go home two ormore times during the academic year

65.19% of all respondents reported expecting to go home threeor more times during the academic year

82.09% of all respondents reported a desire to go home at leastthree or time per year, signifying the existence of a 16.19%difference between the status quo policies and student needs

Question: On average, how much do you spend or expect to spend on travel expenses during the academic year?

1 http://www.yale.edu/sfas/finaid/finaid-information/how-need-based-aid-works.html



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General Reviewof the NewPolicy

Question: Please rank the following potential changes to Yales newfinancial aid system, with 1 being the most important to you and 8 beingthe least important to you.


The last question we asked on the survey revolved around quantifyingstudent opinion about the new financial aid policy. Overall, the resultsindicate student satisfaction with, and appreciation of, the new policy:

84.81% of all students reported being at least moderatelysatisfied with Yales new financial policy



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(1199 students responded to this question; 218 students skipped thisquestion)



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Summary of

Results

Reduction ofStudent SavingsContributions

Qualitative Survey Results

The qualitative responses to the survey (which came from opportunities

for respondents to provide additional comments at the end of many ofthe above-mentioned questions, and at the end of the survey itself)strongly correlate with many of the results elucidated by the quantitativeresponses. Interestingly and revealingly, the student responsescorrespond with a wide range and variety of potential changes tofinancial aid, including some issues not raised within the confines of thequantitative questions. We recommend that the administration seriouslyconsider addressing the issues most strongly emphasized via the studentnarratives. We present those issues in the form of the followingproposed changes:

1. Reduction of the percentage of student savings require to be paidtoward college expense

2. Further increased financial aid for middle- and upper-middle-income families

3. Increased funding for student travel to and from home4. Further reductions to term-time self-help requirements5. Increased availability of funds for unexpected/emergency

expense6. Increased transparency and accountability from Student

Financial and Administrative Services7. Exclusion of outside merit from parental contribution

calculations

With the aim of synthesizing and illustrating the primary concerns raisedby students, we include below organized according to theabovementioned schematic core themes and sample student responses.

Key Themes:

1. Students believe that required student savings contributionsdisadvantage those who have been fiscally conservative

2. Student savings policies encourage students to spend ratherthan to save

3. Due to high student savings contribution requirements, studentsfeel required to earn money during their summers, preventingthem from partaking in nonpaying activities, such as internships,fellowships, or summer academic programs for credit

4. To students, requiring a percentage of students savings depletesfunds that are necessary for a students additional, unexpected,and emergency expenses



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IncreasedFinancial Aid forMiddle-Incomeand Upper-

Middle-Income

5. Students who do not earn savings during the summer feelobligated to take up work-study positions or on-campus jobsthat prevent them from engaging in on-campus activities andstudy time

Select Quotes:

I am (or have been) paying for my education myself throughmoney invested in the stock market. It was saved for me to use asI choose and because of that my parents are not helping me payfor college. I have lost nearly half of all of the money I own in thelast year. Unless the market rebounds entirely in the next yearand a half, I won't be able to make it through college withouttaking out loans. That wouldn't be a problem if I weren'tplanning to attend medical school, for which I will have to applyfor at least $250,000 in loans.

One frustration for me was that I was abroad all summer on aYale fellowship doing research for my senior essay, and therefore,not earning any money. It would have been nice if my summercontribution and student contribution could have been lessenedor waived.

The transparency issue is big, they just don't explain the systemadequately at all and when I ask the people who are supposed toexplain are more confused than I am. Summer self help needs togo down because it really limits the ability of students onfinancial aid to have the same summer opportunities as everyoneelse, as well as to earn and save spending money.

Assets/savings or w/e you want to call them are weighted toomuch; it trumps the changes to the new policy that increase aidbased on parental income.

Key Themes:

1. Students believe that more family assets should be excluded fromfinancial aid calculations

2. Many students have been impacted on a day-to-day level by theeconomic crisis

3. Students believe that factors such as mortgage debt and smallbusiness debt should be included in calculations4. Middle-income families are often hit the hardest by current

Yale financial aid policies, which provide for lower-incomefamilies but overlook the significant burden of financing a Yaleeducation with a middle-income salary

5. Particularly those with multiple dependents, financing a Yaleeducation often means accruing significant debt for manymiddle-income families



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6. Particularly those with multiple dependents, financing a Yaleeducation often means also depleting retirement savings formany middle-income families

7. Some middle-income families include to be affected high assetcalculations stemming from unrealistic estimations of asset value

8. A failure to properly incorporate existing debt in financial aidcalculations disadvantages many middle-income families whomaintain substantial debt

9. Despite the commendable efforts changes made to Yalesfinancial aid program, there still exist notable differencesbetween Yale and other Ivy League differences in re: aid policies

10.International students feel disproportionately disadvantagedunder the current financial aid policy

Select Quotes:

Many middle class families are still struggling to pay tuition andkeep up with expenses. Just keep that in mind.

They have the money to give even more financial aid--especiallyto upper-middle-class people who fall through the cracks now

$50,000 is a lot of money for any family. Just because a familymakes +$200,000 doesn't change the fact that it is ridiculous tospend 25% of a families income on a single child's education,especially when multiple kids are in college.

I am grateful that Yale has expanded its financial aid, but I thinkit should continue to increase aid for middle and upper middleincome students, and exclude a greater amount of family assetsfrom financial aid calculations.

Yale should have better policies about how income from abroadshould be counted in the financial aid process; many countrieshave different cultural standards which require a certain amountof salary to be spent on what is seen in America as "leisureexpenses." Yale has not been very accommodating to my familyin this respect.

I really wish that there were more aid for upper-middle classfamilies, especially those just beyond the $200,000 cut-off. Itseems unfair that people below this mark pay a maximum of 10%of their income, while people beyond this mark pay much more.Perhaps it should be 10% for everyone above a certain income,below which families receive full support.

What happened to families making under 200,000 having topay only 10 percent of their incomes for parental contribution?My parents are forced to pay 20 percent. Financial aid here is stillhorrible for upper-middle class families.

It seems that middle-class and upper middle-class families arestill paying almost full tuition, though they have seen morefinancial aid since Yale's newest financial aid reforms. I wouldencourage Yale to offer a higher percentage of scholarship and



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Increase in

Travel Fund

grant financial aid packages to middle and upper-middle classfamilies which have just become eligible for financial aid sincethis would help my family most. Especially in the aftermath ofthe financial crisis, I think the relative burden of the cost of Yaletuition may become quite similar to the proportion of tuition wepaid before Yale improved its financial aid policies.

It is terrible for middle-class families who make enough moneyto make it appear as if they can afford a Yale tuition but actuallycan't.

Although my family makes enough for us to be classified asupper middle class, other financial factors, such as mortgage debt,small business debt, etc., enter into our calculus that greatlyinhibit our ability to pay what Yale thinks we should be paying.

Key Themes:

1. Over half of respondents indicated spending over $1,000 ontravel during the academic year

2. Nearly half of respondents indicated a desire to go home morethan 4 times per year (assumingly: Thanksgiving, Winter,Spring, and Summer breaks); however, only 22.89% ofrespondents are currently financially able to go home that often

3. Students are finding more difficult than ever to afford travelexpenditures, especially with the current financial crisis causing aspike in airfare and families suffering declining incomes

4. The Yales financial aid package seems to include travel expensesas calculated based on off-peak seasons; however, travel times forstudents tend to be the peak seasons during August,December/January, March, and May

Select Quotes:

My grandparents pay for my tuition and housing, so the crisishas affected my family insofar as we have to pay for incidentalexpenditures (course books, travel, etc.)

I find myself working two jobs (one on-campus and the othernot) to cover nonacademic (but essential) facets of my Yaleexperience (especially travel costs). Financial aid is helpful, of

course, but does not cover everything and I work to pay thedifference, and I refuse to take out loans.

My parents are worried about my lack of time for academics andthe extra-curricular activities I am interested in (volunteerservices, research), so they are still supporting me in terms ofmaking up for the $2500 term-time job requirement and airtickets home (although the FA package includes travel expenses,they are calculated based on off-peak seasons, when August and



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May/June are clearly peak seasons). This is a burden for them.Plus the standard of living here is much higher than it is backhome, so I do find myself spending more than I anticipated (on

winter clothing, books, phone bill etc).

Both of my parent's jobs have reduced benefits so there is lessincome coming into my household. They've been able to coverthe loans but things like books, travel to and from home, andother expenses have become really, really difficult to cover.

I believe that my situation is a special case. I am financiallycovered for tuition, room and board, supplies, and other non-personal expenses by private scholarships. The economic crisisimpacted impacted me and my family in other ways that affectmy budget for personal and travel expenses.

Fortunately I was already receiving full financial aid from Yale,so my family wasn't paying anything anyway. However thiscrisis will definitely affect us especially regarding travel, as I liveall the way in Arizona. I might not visit home as often.

Currency rate has changed and the travel costs have risen, thusthe estimations by the Fin Aid office don't account for thesefluctuations.

Tickets home are exorbitantly expensive now, and the travelcosts barely make up.

I feel that the current allowance for travel is not nearly enough,at least for students from the west coast; even finding thecheapest travel arrangements here, the round-trip and one-wayticket to come to Yale, return home for winter and come backnext semester is over a thousand dollars, let alone returning afternext semester or over spring break.

More money for summer travel, especially for students justscraping above the financial aid mark, would be wonderful

The one big gravamen I do have against Yale's financial aidpackage is the amount of funding that is provided for travel. Asan international student, I have restricted myself to two tripshome during the academic year. Even in that instance, I receiveno financial support for an airfare that is $3000 return. Thiscomes to a $6000 out-of-pocket expense the whole burden of

which my family bears.

Yale could still do more in terms of financial aid. For middleclass families, Harvard's financial aid system is even moreattractive. Yale should include a more realistic number for travel

expenses in its aid calculations. In the calculation of the expenses under total cost of attendance,

I think the travel costs are not adequately representative ofstudents who don't live so close to the university.

The financial aid package was far, far better than what Ireceived from any other school that hadn't adopted a newprogram. However, that means the cost went from impossible toafford to at the limit of affordability. We can handle it well, but



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FurtherReduction of

Term-TimeSelf-Help

IncreasedAvailability ofEmergency

Funds

largely because we are using long-term savings. If we wereexpected to pay what we have to largely out of disposable income,it would be nearly impossible. Also, a roundtrip plane tickethome runs $1200-1600, meaning my travel allotment is usedup just to get down here in August and home in May. The abilityto adjust travel for individual circumstances would be veryhelpful (I believe Stanford has a program along those lines).

The amount allotted for travel expenses is insensitive andridiculous. As a freshman suffering with immense home-sicknessand all the issues that come along with that, I was only able toafford to go home during winter break. Furthermore, staying on-campus was difficult when it came to food and security.

Among respondents, the universal strain on self-help revolves around acriticism of the current requirement as too high, thereby forcing students

to give up studying time and leisure time so as to fulfill their self-helprequirements. Students, among other things, stated that there still seemsto exist critical disconnection between working and non-working Yalies.

Select Quotes:

My mother has had hours cut and cannot afford to pay themortgage. I work three jobs at Yale to help pay it and do nothave money to buy books, bursar, or pay my financial aid ontime.

My evenings are mostly occupied by my jobs. So I cannotattend informational meetings and have less time to study.

I have had to miss several meetings for extracurricular activitiesand have felt unable to commit to additional extracurricular thatI've been interested in.

I often work while others are able to pursue leisure activitiesand play IM sports.

The qualitative responses evince that there is a need for increased fundsfor unexpected and emergency expenses. Question 8 on the surveydirectly addressed this issue by asking students how they had been

affected by the current economic recession. While a relatively smallpercentage of the population categorized their affectedness as extreme,(26 people, or 1.3% of all surveyed, did) many more described theeconomic situation as having moderately or greatly impacted theirfamilies abilities to pay for a Yale education.

Hence, the recent economic crisis has most likely exacerbated studentdemand for increased funds for unexpected situations and crises a



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demand that might not have been existent last January. Despite the lownumber of students who have applied for financial aid review, manystudents seem to still have been nonetheless perversely affected by thecrisis.

Select Quotes:

All of my college funds were in the stock market, so now wehave to use up our savings to pay for tuition. My family lost40% of our money in the last month, and my dad owns a smallbusiness that produces chemicals used to plate metal. His largestcustomers are auto manufacturers: since that market is about tocompletely implode, our financial outlook is dire.

My parents' jobs are insecure. With the stock market crisis my family has lost retirement

savings and a good amount of money in the stock market, islikely to face mortgage troubles, and find difficulty taking out

loans. Financial aid will thus be very important in helping to payfor my education.

Prices have generally spiked, and I come from a low-incomebackground. My family's income has not increased, and we haveto pay increasingly larger amounts of money to Yale every year.

The currency exchange rate has changed dramatically which hasnot been reflected in my Yale bill. My parents will be payingmuch more than anticipated.

Being a senior, I have accumulated tens of thousands in studentloans in the past years. The economic crisis impacts my post-graduate plans knowing that I need to start paying off those

loans despite a job market that has fewer opportunities. I do not receive any financial aid from Yale. My parents have

lost a huge amount of money over the past few months, mostlyfrom my college fund. I will still not be eligible for aid next year,meaning I will probably be taking out 50-75% of my tuition inloans.

Money is a little tight at home which mainly affecting myspending on art class materials and books (a lot of sharing andlibrary use this year), as well as limiting my opportunities to gohome.

I am (or have been) paying for my education myself throughmoney invested in the stock market. It was saved for me to use

as I choose and because of that my parents are not helping mepay for college. I have lost nearly half of all of the money I ownin the last year. Unless the market rebounds entirely in the nextyear and a half, I won't be able to make it through college

without taking out loans. That wouldn't be a problem if Iweren't planning to attend medical school, for which I will haveto apply for at least $250,000 in loans.



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IncreasedTransparency

from SFAS

Exclusion ofOutside Merit

from ParentalContribution

I will need to take out a line of credit and dig into parents'retirement funds to pay for upcoming semesters.

My family lost thousands of dollars in the stock market, andmuch of the savings that I had in place to pay for my portion ofmy education has been compromised.

Our stock holdings have fallen dramatically making itimpossible for my father to retire when I graduate. I think we

will be able to make it through 1 more Yale semester.

While students seem highly appreciative of SFASs efforts to increasetransparency, a few of the student narratives indicate the potential forfurther improvements. Specifically, a few students indicated that theydid not feel the office was proactive enough in approaching themregarding the potential for financial aid review. Hence, in addition topromoting transparency, SFAS might be well-served to proactively reachout to students as well by, for example, sending periodic e-mail arts.

An issue raised previously in old surveys that was raised again bystudents in this survey is the exclusion of outside merit from parentalcontribution. The current system, which prohibits outside merit frombeing coupled with financial aid packages, greatly diminishes theintrinsic and practical value of obtaining outside help. Students onfinancial, essentially, have no practical incentive (in the status quo) to gothrough the application processes of scholarships and fellowships givensuch incentive structure. We believe that

The value of obtaining outside help is greatly minimized under thecurrent system. The exclusion of outside merit awards from parentalcontribution calculations omits the work students put into obtaining thataid. To some, it might seem as if the university is easing its burden at theexpense of their student. Unlike many colleges across the nation, Yaledoes not provide students with any merit scholarships. Since many largemerit scholarships are sent directly to the school and deducted from the

Yale scholarship and individual receives, money needed for books, living,travel, and miscellaneous expenses must be obtained by other means.



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Rocking WallStreet and MainStreet

Columbia

Comparative Analysis re: Other Ivy LeagueInstitutions Responses to the Financial Crisis

Since the implementation of its new financial aid reforms in 2007-2008,Yale, as well as other universities across the country, has come up againstunforeseen and substantial obstacles in the guise of a financial crisis thathas rocked Wall Street as well as Main Street. This dual effect has meantthat while the University must be fiscally prudent and access its spendingincreases, financial aid has become more important than ever as increasednumbers of students require financial assistance to continue their Yalecareers.

In the light of the crisis, Yale has been forthwith about informing andreassuring students about it commitment to financial aid. In a note from

Caesar Storlazzi, Director of Student Financial Services on November 12,students with changing financial situations were encouraged to use theoffice as a resource to reassess their eligibility for support. In a similarstatement issued on October 22nd, Yale University President RichardLevin cited Yales large endowment, substantial reserves, and generallyconservative stance on spending as the resources the University needs tosuccessfully navigate our current turbulent financial waters.2

Though a December announcement of a return of -13.4% in investmentsfrom July 1 through October 31 of 2008 clearly means that Yale mustreassess its budget for the upcoming year and years, $17 billion is wherethe budget stood in January of 2006. The budget shortfall will be around

$100 billion next year of which Yale will seek to eliminate two-thirdsnext year. Further adjustments will be made based on how the marketfares in the coming year. Yale has continual reassured its students that itremains committed to its financial aid improvements as well as offeringincreased support to families affected by the crisis. The commendable jobthe University has done in 1) increasing its financial aid spending in2007-20008 and 2) honoring that commitment in the face of asubstantial hit to the endowment must be lauded. To provide somecontext from comparable institutions, we include below a brief outline ofother Ivy League Universitys response to the crisis in terms of financialaid and other fiscal reforms which affect the life of the university.

Columbia president Lee Bollinger said that Columbia would take steps tocontinue with its current fundraising campaign and maintain fiscalresponsibility.

2 http://opa.yale.edu/president/message.aspx?id=82



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Harvard

In a statement released mid November Bollinger stated, We can alsoanticipate greater demands on financial aid and the possibility of otherlosses in tuition revenueAnd we have no way of knowing whether we

will be able to maintain our currently robust fund-raising successes.3

Because of financial stresses, Bollinger added, the University will makesome difficult choices about how we allocate our resources.4

The choices are already being considered in committee meetings led byProvost Alan Brinkley and Executive Vice President for Finance AnneSullivan who are in the process of meeting with each dean to examine theschools budgets and a wide-ranging financial review is alreadyunderway.5

Bollinger also said that CC and SEAS will continue to accept applicantsregardless of financial need and that We will also work to sustain, and

when possible enhance, current levels of financial aid in other schools

and programs.6

We must, even in these difficult times, keep our eye on this priority andmake choices that continue to enable us to advance our highest prioritiesuniversity-wide and in individual schools, Drew Faust was quotedsaying by the Harvard Crimson. Harvard's endowment has suffered alost of around 22% this year, around 8 billion dollars. The actual lossmay even be high as other components of the economy decline andHarvard begins to calculate harder to value assets like real estate andprivate equity. The university is planning for a 30% loss for the fiscalyear ending in June 2009 which would be the worst loss in the last 40years, eclipsing the 12.2% loss of 1974.7

In early November, Harvard University officials announced they arebracing for spending cuts in the anticipation that federal grants will beharder for students to obtain.8 It has been reported that they are

3 http://www.columbiaspectator.com/2008/11/12/bollinger-weighs-how-financial-crisis-will-impact-endowment-recruiting4Ibid.5Ibid.6Ibid.7 http://online.wsj.com/article/SB122832139322576023.html8 http://theridgewoodblog.blogspot.com/2008/11/economic-crisis-shakes-ivy-walls.html



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Princeton

reconsidering its expansion program into a neighboring Cambridgesuburb.9

Princeton president Shirley Tilghman views the university as in aposition where we can survive this much better than most universities,according to the Daily Princetonian. 10 Despite the bravado, Princetonscaled back its decade-long, $3.9 billion capital spending plan, slashingthe total outlay by $300 million.11

The Universitys Financial Aid Office estimates a $3 to $4 millionincrease in financial aid requests up to November this year, but hasreleased a statement to the effect that they plan to fully meet everystudents needs.

The increase represents a 3 to 5 percent increase from the $82 million

awarded in need based scholarships in the 2007-08 academic year.Tilghman noted, We might even see additional calls on financial aid inaddition to the ones that we know about already.12 The increase funds

which come out of Annual Giving which reported a $5 million surpluslast year. If the crisis persists, however, and giving is curtailed, theuniversity will need to find other means of funding. 13

University Provost Christopher Eisgruber 83 backed Tilghman inindicating that Financial Aid is a top priority.

Statistically of the $82 million in need-based grants in 2007-08, around$76 million came from resources like the endowment and AnnualGiving. Federal and state programs added $2.8 million in scholarships,and $3.2 million came from non-governmental programs. Students onfinancial aid also earned around $2.2 million from on-campus jobsduring the school year.14

9 http://www.columbiaspectator.com/2008/11/13/ivies-optimistic-about-endowments-financial-aid-despite-economic-crisis10Ibid.11 http://www.thecrimson.com/article.aspx?ref=52560412 http://www.dailyprincetonian.com/2008/11/12/22067/13Ibid.14Ibid.



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Cornell

Brown

Dartmouth

Cornell has enacted a freeze on construction for 90 days starting onNovember 3rd15 and a hiring reported to last through March 31 of200916, as well as a six-week review of operational effectiveness,financial policies and procedures.17

Brown announced early in November that it will issue a suspension ofnew hires, which would have resulted from voluntary turnover, until

January in an attempt to cut back unnecessary spending.18

Committees have been created to discuss any further curtailments ofspending, most notably by means of an Organization Review Committee

which will consider whether staff and administrative organizationalchanges can be made to achieve efficiencies and enable the reallocation ofresources to student support and academic programs. 19 In general, theCommittee indicated that the capital budget is in the process of being

assessed to see which, if any, construction plans can be postponed.20

Browns cuts have not seemed to have reached the financial aid officewhich has been active in implementing measures like waiving a balancerequirement for spring semester pre-registration and increasing thenumber of counselors available to discuss financial aid options21 to meetthe growing needs caused by this crisis. In a November 4th letter to thecampus, President Ruth Simmons listed as one of the Universitys toppriorities as meeting, increased need for financial aid for currentstudents and payment flexibility for families whose finances have beenadversely affected by tightening credit.22

The provost of Dartmouth as issued statements which outline spendingcuts of 10% (40 million) over the next two fiscal year coupled with a

15 http://www.columbiaspectator.com/2008/11/13/ivies-optimistic-

about-endowments-financial-aid-despite-economic-crisis16Ibid.17 http://www.thecrimson.com/article.aspx?ref=52560418 http://www.columbiaspectator.com/2008/11/13/ivies-optimistic-about-endowments-financial-aid-despite-economic-crisis19 http://news.brown.edu/pressreleases/200811/economy20 http://www.thecrimson.com/article.aspx?ref=52560421Ibid.22 http://news.brown.edu/pressreleases/200811/economy



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University ofPennsylvania

Conclusion &Recommendation

hiring freeze after its endowment lost $220 million.23 This year,Dartmouth plans to reduce spending by 5%. Construction is in theprocess of being delayed or differed and all new capital plans are beingreviewed.24

In December, University of Pennsylvania president Amy Gutmannannounced steps to reduce the Universitys expenditures in a move whichincludes freezing the base pay of all senior University officials for 2009-2010. Each of Penns schools and centers has been asked to make plansto reduce their individual spending.25 These methods include non-compensation expenditures and halts on capital projects that arent fullyfunded. Students have expressed concern about how the financial crisis

will affect their financial aid packages, but the University has beenconstant in its assurance that it will address these issues with expediency.The director of student financial aid, Bill Schilling, has been working on

a model to predict increases to financial aid and thus more accuratelyestimate and plan for potential increases.26

While it is clear that undertaking new financial aid reforms seemsadverse to the budget cuts being implemented by other universities, Yale

would do well to continue to balance the needs of the University with theneeds of its students. The current financial crisis is far reaching in itsbreadth, affecting individuals and families across profession, socio-economic status, and nationality. Students who never needed aid before

will be reaching out to Financial Services and many individuals currently

receiving aid will need their packages reassessed. From statementsreleased to the student body, it seems as though Financial Services isaware of this coming increase and is well prepared to meet it.

While a more substantial list of financial aid reforms can be found below,here we would like to recommend that the University considerundertaking some of the reforms listed under Improvements to thedichotomy of experience between students receiving financial aid and

23

http://theridgewoodblog.blogspot.com/2008/11/economic-crisis-shakes-ivy-walls.html24 http://www.thecrimson.com/article.aspx?ref=52560425 http://media.www.dailypennsylvanian.com/media/storage/paper882/news/2008/12/04/News/Gutmann.Responds.To.U.s.Budget.Problems-3569038.shtml26 http://media.www.dailypennsylvanian.com/media/storage/paper882/news/2008/11/20/News/Despite.Economy.Penn.Has.Yet.To.See.A.Increase.In.Concern.Over.Financial.Aid-3554332.shtml



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those who are not. Providing a cut to term time self-help, reducingsummer income, or reassessing/increasing funds available for unexpectedor emergency expenses would have an ameliorating effect on the day today welfare of Yale students and allow the University to set itself apart,yet again, from its peers in reaffirming a commitment to studentsinterests in these uncertain times. Attacking issues such as emergencyexpenses seem to be possible on a smaller scale and therefore in keeping

with the tenor of todays realities.

In a state where confidence in our economic institutions is at a low, anextension of a tangible financial aid reform would reaffirm theUniversitys already substantial and admirable work on financial aid as

well as reassure students, both present and future, of the schoolscommitment to their personal well being in these uncertain times.



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Brown

Comparative Analysis re: Other Ivy LeagueInstitutions Financial Aid Policies

This past year, we witnessed both before and after Yalesannouncement of the new financial aid package saw numerouscomparable universities in the Ivy League announce new financial aidpackages for the 2008-2009 academic year. To complete any systematicevaluation of financial aid at Yale, it bears mentioning the work andprogress of financial aid at our peer institutions around the Ivy League.

So as to not to encumber readers with too much data, we concentrate ouranalysis within the particular contexts of changes to financial aid formiddle-income families and the inclusion (or lack thereof) of outsidescholarship programs in students financial aid calculations.

Brown stands out from its other Ivy League peer institutions by allowingstudents to use scholarships to reduce their student contributions to theirfinancial aid packages, including their summer savings expectation27.Undergraduate financial aid applicants with total parent incomes lessthan $100,000, at the time of admission, do not have a loan componentin their awards28. In early November, President Simmons addressedBrowns community in a letter, which stated that the university aimed tobolster its financial aid program in order to meet increased need forfrom current students and payment flexibility for families whose finances

have been adversely affected by tightening credit29.

In October, Provost Kertzer released a memo stating that for thisacademic year only, certain exceptions would be made for students who

would otherwise be banned from pre-registering or returning to campus.While it is too late to implement such a policy for this academic year,Yales Student Financial and Administrative Services might want toconsider Browns initiative. According to Provost Kertzer, ordinarily,students with a fall term unpaid balance of $1000 or more would not beallowed to pre-register for the spring semester in November. We aregoing to waive that requirement this year. Students will be able to pre-

register regardless of their balances. Students with unpaid fall termbalances of $5,000 or more would not normally be permitted to return

27 https://financialaid.brown.edu/Cmx_Content.aspx?cpId=78#initiatives28 https://financialaid.brown.edu/Cmx_Content.aspx?cpId=78#initiatives29 http://news.brown.edu/pressreleases/2008/11/economy



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Cornell

to campus for the spring semester. On a one-time basis we have raisedthe level of the outstanding balance for fall term charges to $7,500. Latefees will continue to accrue on any outstanding balance, regardless ofpre-registration or enrollment status. This policy applies toundergraduates, graduate students and medical students.30

Browns outside scholarship policy states that federal regulationsstipulate that an outside scholarship cannot be used to reduce the parentcontribution. Scholarships can be used to reduce the student contributionfrom summer earnings, work study or loans31.

At Cornell, the Office of Financial Aid and Student Employment haspromised that for the 2009-10 academic year, the program willeliminate need-based loans for students from families with total incomesbelow $75,000, and cap annual loans at $3,000 for students from

families with total incomes between $75,000 and $120,000

32

. InNovember 2008, President Skorton declared that Cornell Universityopen its doors even wider to make it possible for students from diverseeconomic backgrounds to attend Cornell33. Interestingly, according tothe Cornell Daily Sun, 97 percent of $138.9 million Cornell plans tospend on undergraduate financial aid in 2008-09 will be grant aid,

which will not be repaid to the University.

Despite the economic downturn, Cornell also announced in Novemberthat the financial aid initiative it had announced in January 2008 wouldcontinue to allow many Cornell students to graduate debt-free, inaddition to relieving the enormous economic burden placed n lower to

middle class income bracket families34. Peter Meinig, Chairman ofCornells Board of Trustees stated in an email that despite the financialcrisis, I am pleased that we are ending the same year with an expansionof the program35. Trustees at Cornell such as Michael Walsh realize thatimprovements to undergraduate financial aid are essential duringsuch periods [of financial turmoil]

30 https://financialaid.brown.edu/Cmx_Content.aspx?cpId=31431 https://financialaid.brown.edu/Cmx_Content.aspx?cpId=7232 http://finaid.cornell.edu/welcome.cfm33 http://cornellsun.com/section/news/content/2008/11/14/cornell-further-caps-loans-new-financial-aid-plan34Ibid.35 http://cornellsun.com/section/news/content/2008/12/05/univ-remains-committed-aid-during-crisis



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Columbia

in order to allow for the level of accessibility that attracts a diverse groupof studentsto Cornell36.

The interim provost at Cornell, David Harris commented that the schoolwould try to provide security for the economically diverse student bodyby expanding the viability of Cornell as an option for students,increasing students chances of success through reducing the stress offinancial concerns and providing less wealthy students with the flexibilityto pursue a range of careers through minimizing loans37.

Cornells outside scholarship policy is as follows: Outside scholarshipsor tuition benefits will reduce the self-help component (loans and work-study) of your financial aid package, but will not reduce the parentcontribution. If all the self-help in your award is cancelled, in some casesCornell grant aid will need to be reduced or cancelled as well38.

In March 2008, Columbia announced a revision of its financial aidpolicy, which aimed to help more lower and middle incomeundergraduates39. Columbia promised to support students pursuingstudy abroad, research, internships and community service opportunitiesby offering additional funding and exemptions from academic year andsummer work expectations through Columbias Summer and AcademicTerm Work Exemption Program40, an option Yale currently does notoffer its students.

Columbia has also aimed to relieve some of the economic burden onlower and middle income families by reducing they types of assets

typically considered in parent contributions. Columbia clearly stateswhich assets are factored in the parent contribution calculations, bystating the following: When determining the parent contribution, wetake into consideration the parents assets which include cash, savings,checking, investments, home equity, other real estate (other than home)equity, and business equity. We do not include retirement assets (i.e.,

36Ibid.37Ibid.38 http://finaid.cornell.edu/types/scholarships/outsidescholarships.cfm39 http://www.columbia.edu/cu/news/08/03/FinancialAid.html40 http://www.studentaffairs.columbia.edu/finaid/enhancements/faq.php#1



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401K, 403b, IRA, Keogh) in our analysis.41 International studentshave also been impacted by Columbias revised financial aid policy. Theyare now eligible to receive financial aid that will not be packaged withloans, to apply for the summer and academic term work exemptionprogram and to have their work expectation eliminated during theirstudy abroad term42.

Despite the financial downturn, in a letter to Columbias students andstaff, President Bollinger promised to continue to commit to deliveringfinancial aid to its students, and to expand the financial aid program

where possible, having acknowledged the probably increased demand forit43.

According to Columbias Student Financial Services, if a student receivesa scholarship from an outside organization, the financial aid office firstapplies the amount against the student's unmet need, then toward self-help awards (by reducing private loans or work-study) and finally by

reducing federal aid (affecting federal loans first) so that total financialaid (including the outside scholarship) does not exceed the cost ofattendance44.

In March 2008, Columbia announced a revision of its financial aidpolicy, which aimed to help more lower and middle incomeundergraduates45. Columbia promised to support students pursuingstudy abroad, research, internships and community service opportunitiesby offering additional funding and exemptions from academic year andsummer work expectations through Columbias Summer and AcademicTerm Work Exemption Program46, an option Yale currently does notoffer its students.

Columbia has also aimed to relieve some of the economic burden onlower and middle income families by reducing the types of assetstypically considered in parent contributions. Columbia clearly states

which assets are factored in the parent contribution calculations, bystating the following: When determining the parent contribution, we

41 http://www.studentaffairs.columbia.edu/finaid/enhancements/faq.php#442

http://www.studentaffairs.columbia.edu/finaid/enhancements/faq.php#843 http://nymag.com/daily/intel/2008/11/columbia_financial_crisis.html44 http://www.columbia.edu/cu/sfs/docs/Ugrad_Fin_Aid/Outside/index.html45 http://www.columbia.edu/cu/news/08/03/FinancialAid.html46 http://www.studentaffairs.columbia.edu/finaid/enhancements/faq.php#1



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Dartmouth

take into consideration the parents assets which include cash, savings,checking, investments, home equity, other real estate (other than home)equity, and business equity. We do not include retirement assets (i.e.,401K, 403b, IRA, Keogh) in our analysis47. International studentshave also been impacted by Columbias revised financial aid policy. Theyare now eligible to receive financial aid that will not be packaged withloans, to apply for the summer and academic term work exemptionprogram and to have their work expectation eliminated during theirstudy abroad term48.

Despite the financial downturn, in a letter to Columbias students andstaff, President Bollinger promised to continue to commit to deliveringfinancial aid to its students, and to expand the financial aid program

where possible, having acknowledged the probably increased demand forit49.

According to Columbias Student Financial Services, if a student receives

a scholarship from an outside organization, the financial aid office firstapplies the amount against the student's unmet need, then toward self-help awards (by reducing private loans or work-study) and finally byreducing federal aid (affecting federal loans first) so that total financialaid (including the outside scholarship) does not exceed the cost ofattendance50.

In January 2008, previous to the widespread publication of the effects ofthe financial crisis, President Wright of Dartmouth announced thatfamilies earning $75,000 or less51 would not pay anything for their

childs education. Yale, by contrast, has set its lower limit to a $60,00052threshold. Dartmouth also offers its students scholarships, rather thanloans, with the average scholarship reward for students in the class of2011 being $30, 34153. Dartmouth has also replaced one "leave term"earnings expectation with additional scholarship dollars, which will givestudents the resources to travel abroad for a semester54.

47Ibid.48 http://www.studentaffairs.columbia.edu/finaid/enhancements/

faq.php#849 http://nymag.com/daily/intel/2008/11/columbia_financial_crisis.html50 http://www.columbia.edu/cu/sfs/docs/Ugrad_Fin_Aid/Outside/index.html51 http://www.dartmouth.edu/~news/releases/2008/09/23e.html52 http://www.yale.edu/admit/freshmen/financial_aid/index.html53 http://www.dartmouth.edu/apply/financialaid/fafaq.html54Ibid.



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Harvard

In November this year, though, Adam Keller, Executive Vice Presidentfor Finance and Administration, announced that over the fiscal years of2010 and 2011, Dartmouth would be looking to reduce its budget by$40 million dollars55. While he did not launch into the specifics ofpotential changes to the financial aid program, President Wright, in hisaddress to the Dartmouth community on November 13th, stated thatthe Board agrees with our financial projections and goals: we need toprotect financial aid56.

Dartmouths outside award policy mirrors that of Yales: so that studentscan receive the full benefit of outside (merit) awards, Dartmouth willreduce a student's loan and/or employment eligibility by the full amountof the outside scholarship57.

In February, according to a member of Dartmouths student council,Dartmouth will be coming out with a statement describing all theuniversitys budget cuts. However, most budget cuts will not be

happening until the next academic year begins in the fall.

Harvard stood out from peer institutions because its financial aid officehad published a midyear reconsideration application which its studentscould easily download online (it can be viewed athttp://www.fao.fas.harvard.edu/downloads/midyear_%20reconsideration.pdf). This formalized a process a number of universities, including

Yale, had only vaguely talked about on their websites. This will probablylead to Harvards Financial Aid Offices faster processing of its studentsfinancial need in the upcoming semester.

Among other things, Harvards sweeping financial aid reform, institutedin December of 2007 stipulated that home equity and retirement assetsnot be factored into the parental component of assessment of assets, andthat students would receive grants in place of loans58 Harvard has amore comprehensive middle income financial aid policy. Unlike Yale,

which expects parental contribution of 1-10% for people who earnbetween $60,000 and $120,000, Harvard has extended this expectationof parental contribution to cover parents earning an income of up to

55 http://www.dartblog.com/data/2008/11/008392.php56Ibid.57 http://www.dartmouth.edu/apply/financialaid/fafaq.html58 http://www.hno.harvard.edu/gazette/2007/12.13/99-finaid.html



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University ofPennsylvania

$180,000.59 Interestingly, despite the fact that Harvard financial aidstudents are also required to pay $2,500 in self help, they are expected to

work 10-12 hours per week60, rather than 7 hours, which Yale claims isthe amount of time students would have to work to make the equivalentamount in during the academic year61.

The credit crunch resulted in President Fausts November 3rdannouncement. She declared that Harvard would consider moderatetuition increases, but would resist big tuition increases62. PresidentFaust also suggested that financial aid programs such as scholarships

would be maintained at their current levels63. Harvards outside awardpolicy is to use the full amount of outside awards first to replace yourterm time job expectation and then your summer earnings expectation.

When outside award total are greater than these expectations, the excessamount must be used to replace an equal amount of Harvardscholarship64.

At the University of Pennsylvania, President Gutmann addressed theuniversity community early in December, and made it clear that UPenn

would remain committed to delivering its financial aid packages to itsstudents. She recognized that although tuition is a critical source ofrevenue, we also recognize that in these extraordinary times, whenstudents and families are facing unprecedented financial pressures,increases in tuition must be moderate 65.

UPenns Student Financial Services website is clear in listing itswillingness to help students whose financial position has changed in this

past year. One significant difference between Yale and UPenns policies isthat UPenn offers all dependent undergraduate students who areeligible for financial aid will continue to receive no-loan packages,regardless of family income. This policy allows [UPenn students] to

59 http://www.fao.fas.harvard.edu/downloads/Middle_income_

FAQ.pdf60 http://www.fao.fas.harvard.edu/fact_sheet.htm61 http://www.yale.edu/sfas/finaid/finaid-information/philosophy.html62 http://www.reuters.com/article/businessNews/idUSTRE4A98592008111063Ibid.64 http://www.fao.fas.harvard.edu/types_of_aid.htm65 http://www.upenn.edu/president/gutmann/speeches/digest/dec3-08%20Digest.html



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Princeton

avoid debt or to use [their] eligibility for federal loans to help offset[their] family contributions66. UPenn also offers a Tuition StabilizerPlan, which allows parents to pay for their childs four years of educationat the current rate (thereby avoiding future tuition increases). TheTuition Stabilizer Plan can be found at: http://www.sfs.upenn.edu/paying/paying-tuition-stabilizer-program.htm. Additionally, under theexpansion of its Financial Aid program, this year UPenn was able to offerchildren of parents who made $90,000 or under free tuition67. Of all theIvy Leagues, UPenn offers the highest threshold for which parents do nothave to contribute to their childs education.

At UPenn, when you receive an outside scholarship (i.e., scholarshipsawarded from non-governmental sources outside the University), you

will receive a dollar for dollar reduction in the self-help component ofyour financial aid package. Self-help includes expected savings fromsummer earnings, and work-study. University grant will be reduced onlyafter all self-help has been eliminated68.

Like Cornell and Dartmouth, Princeton ensures that students whosefamily incomes are below $75,000 do not have to pay anything69.Princeton does not have loans, and instead issues grants. Princetons self-help package is one of the lowest, and requires students, as of the 2008academic year, to contribute $2,275 through term-time work, or theequivalent of 7.5 hours of work per week70. Princeton is also verygenerous with its summer savings policy. Freshmen are expected tocontribute $1,000 when they enter Princeton. Partial grants are availableto replace the summer earnings requirement for students who are unable

to save the expected amount. Princeton accept a wide variety of reasons for example, choosing to participate in unpaid activities such asinternships or volunteer work, as well as being unable to find a job orearn the full amount listed in the aid package71. Princeton does notinclude the value of a familys home when considering their assets, andprovides a renters allowance for families who do not own a home.Students are asked for only 5 percent of their own savings72. Princetons

66

http://www.sfs.upenn.edu/announcements/announcements-financial-crisis-undergraduate.html67 http://www.upenn.edu/pennnews/article.php?id=134868 http://www.sfs.upenn.edu/paying/outside-scholarships.htm69 http://www.princeton.edu/admission/financialaid/how_it_works/

who_qualifies/70 http://www.princeton.edu/admission/financialaid/whats_great/71Ibid.72Ibid.



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Conclusion &Recommendation

scholarship policy differs from Yales. Princetons allows scholarships tobe used in such a way that grants will only be reduced when Princetonstudents have used their scholarships to cover their self-helprequirements, and have bought a computer, should they wish to73.

According to Director of Undergraduate Financial Aid Robin Moscatoand President Tilghman, since the financial crisis, $3 to $4 million inadditional funding will be needed to assist both a larger number ofstudents on aid than anticipated, and to meet increased needs for aidfamilies who have experienced job loss, reduced incomes, and otherfinancial difficulties74. Thanks to Princetons $5 million surplus fromlast years Annual Giving campaign, the university will be able to coverthe increased need for financial aid this year75. It hopes to cut back onother spending this year, but according to Tilghman, it is unclear if theuniversity could outride the storm if it continues for much longer.

Over this past year, Yale has made significant changes to its Financial Aidpolicy, all of which have been appreciated by students. However there isroom for improvement, especially when Yales Policy is compared withthose of its peer institutions. While at Yale, parents who make $60,000or under are not required to contribute anything towards their childseducation, at other universities this minimum threshold is much higher.

At Brown, for example, financial aid applicants with total parent incomesless than $100,000 have no loan component to their awards. At bothCornell and Princeton, this base-line amount is $75,000. Thus, onesuggestion is that Yale revise its middle income family bracket to be morecomprehensive, and on par with other Ivy League institutions.

Provost Kertzer at Brown also made it clear that specific initiatives werebeing taken for the current financial situation by exemptingundergraduate, graduate and medical students from fully paying theirschool fees by the traditionally established deadlines.

While Yales ISA certainly gives many students the opportunity to travel,work or study abroad, it might be worth considering a program similarto Dartmouths, where students are given one leave term earningsexpectation with additional scholarship dollars, which gives students theresources to travel abroad for the summer.

73 http://www.princeton.edu/admission/financialaid/financial_aid_faqs/74 http://www.dailyprincetonian.com/2008/11/12/22067/75Ibid.



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A Deep Sense of

Appreciation

FromMacroscopic toMicroscopic

Yale College Council Recommendations

Although we stressed it in various parts of the report, this committee

wants to emphasize once again that we and the rest of the Yale CollegeCouncil deeply appreciate the efforts made by the Yale administration,and, in particular, SFAS (under the leadership of Caesar Storlazzi) to:(i) make Yale more affordable; and (ii) substantively include students inthe universitys decision-making process. In particular, we commend theadministration for its admirable and transparent efforts exemplifiedperhaps most strongly by its sustained commitment to financial aid inlight of the recent economic crisis.

Needless to say, as evidenced by the work of the YCC of 07-08, thereexists a strong precedent of student involvement with SFAS, and the

YCC of 08-09 is proud to take part in continuing the YCCs storied

tradition of aiding the administrations efforts on financial aid. For that,we are exceptionally proud and grateful.

That being said, from our systematic analysis of the aforementionedsurvey responses and our comparative research, we offer a fewsuggestions re: financial aid for SFAS and the Yale administration.Despite our desire for change, we are cognizant of the difficulty of thesetimes. Thus, we have carefully contextualized most of ourrecommendations within the budgetary limitations catalyzed to the

economic crisis. Furthermore, we have also tailored many of oursuggestions towards addressing some of the most pressing concernsintroduced by the recent crisis.

The main theme we draw from our analysis revolves around a transitionin the problems regarding financial aid from macroscopic to microscopic.That is, we believe the new financial aid policy has successfully tackledmany of our largest concerns regarding financial aid, such as amongothers the increase of the ceiling for free tuition, the increase of aid tomiddle-income families, and the near elimination of loans at Yale. Yet,despite the progress made, there still undoubtedly exists problems re:financial aid at Yale. Now, though, the problems are manifested on a

much more localized and subtle level. Such problems are perhaps bestillustrated by the many compelling qualitative narratives submitted bystudents, many of which are cited above.

Most prominent among these day-to-day issues include: (i) the still-to-high student contribution/self-help requirements; (ii) the lack ofsufficient travel funds; and (iii) the exclusion of outside scholarshipsfrom financial aid.



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YCCRecommendations

Therefore, while the university is undoubtedly strained in its resources,perhaps it might be possible and, indeed, we hope it willbe to implement some of our proposed localized changes. Given ourresearch, we are confident such incremental changes will likely have asubstantial effect of student well-being at Yale. The demand and needfor further progressive changes to, among other things, self-help andtravel are only highlighted by the economic crisis, whose impact (asdescribed by students) seems to be most obvious on more localized levels.Given that the crisis has only gotten worse since October, now is perhapsthe best time to institutionalize some of the aforementioned changes.

Under three broad categories, we outline a few specific recommendationsfor financial aid at Yale. While most of these proposed changes fallunder the category of smaller and more day-to-day changes, wenevertheless also propose a few broader changes to be perhapsconsidered under fairer economic times. Again, we emphasize oursincere appreciation in the administrations work and efforts on financial

aid. We are, as stated above, proud and honored to have participated inthe evaluation process.

To address the concerns illuminated by the qualitative and quantitativedata from the YCCs third survey on financial aid and colored by ourcomparative evidence, we recommend the following sets of changes.

1) The University should progressively alter its current asset andfinancial aid calculations methodologies (so as to better accommodatestudents) by:

Re-evaluating asset calculations and reducing the weight ofhome equity

Weighting additional factors such as existing debt, multipledependents, and retirement savings (or lack thereof) moreheavily in aid calculations

2) The University should take significant steps to reduce the dichotomyof experiences between students on financial aid and those who are notby:

Allowing all students who receive outside scholarships tocontribute those funds to parental contribution, recognizing thatmany students particularly those from lower-income families already pay a portion of the parental contribution

Increasing the availability of additional funds for travel,especially for international students who are able to go homesignificantly fewer times than their peers



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Reducing the amount of require term-time self-help so as to freeup time for students on financial aid to better experience the co-curricular and extra-curricular offerings of Yale

Reducing the amount of summer income required for self-helpto allow students to pursue, among other things, service-orientedand educational summer opportunities during the summer, asoppose to pay-oriented and vocational ones

Reducing the percentage of savings required to be paid towardcollege expenses to discourage the described culture of spend it,dont save it

3) The University should improve its ability to respond to any specialcircumstances, such as the economic crisis, which may adversely affect astudents financial situation by:

Devising a more understanding, transparent method forcalculating the needs of students with non-custodial parents in

general financial aid decisions Creating an improved method for addressing specific special

needs in a timely, thorough manner, whether by adding a newsub-section of SFS responsible for evaluating specialcircumstances and appeals, hiring a new individual responsiblefor addressing these issues, or even just establishing a clear,transparent process for how the University accounts for uniquefinancial situations

Proactively reach out to students regarding the procedure forreviewing their financial aid packages in the event of unexpectedchanges to their familys income situation

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Ycc Report Re Financial Aid Survey Findings Winter 09

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