Miami University Resource Reallocation Plan

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Miami University ResourceReallocation Plan
RestructuringTuition Scholarships

• CACUBO Annual Meeting
• Milwaukee, WI
• Ralph R. Gutowski
• Assistant Vice President for Institutional
  Research
• October 18, 2005

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Miami University - Background

• Total enrollment 16,300
• Percent Ohio residents in student body 72
• Applications for 3,350 freshman slots 15,000
• Freshmen from top 10 of high school class 40
• Average ACT SAT scores of admitted students
• 29 and 1280
• Freshmen attending private high schools 25
• Ohio resident tuition 8,353 (before plan
  started)
• Non-resident tuition 18,103 (before plan
  started)

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Background (contd)

• Miamis typical entering first-year student is a
  high-ability 18-19 year old seeking a liberal
  arts-based residential college experience.
• Miamis main competitors are elite public and
  selective private universities (Michigan, OSU,
  Illinois, Vanderbilt, Notre Dame, Indiana,
  Wisconsin, Denison, Case Western, Northwestern).

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Background (continued)

• In Ohio, Miamis market niche is reflected in
  comparative graduation rates

Source Ohio Board of Regents, Ohio's Colleges
and Universities Profile of Student Outcomes,
Experiences and Campus Measures,
http//www.regents.state.oh.us/perfrpt/
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Rate of change of Miamis tuition was increasing
significantly
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50-year History of State SupportCompared to
Student Tuition
Average State Support per Student
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Miamis student body is typical of that of a
selective private university

• Percentage of freshmen whose parents earn 100K
• The Ohio State University 27
• All Public Universities 30
• Highly Selective Public Univ. 38
• All Private Universities 49
• Highly Selective Private Univ. 53
• Miami University 54
• (ACE Freshman Class Survey)

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Public University Funding ModelLow Tuition
Low Aid

• BEST FOR UNIVERSITIES WITH. . .
• Low to middle-income student body
• Graduation rates 20-60
• Many non-traditional students
• Open admissions or low selectivity
• Place-bound students

PUBLIC PRICING MODEL Retail Outlet
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Private University Funding ModelHigh Tuition
High Aid

• BEST FOR UNIVERSITIES WITH. . .
• Low to high-income student body
• Graduation rates 60-100
• Traditional age student body
• Selective admissions
• Students drawn from wide area

PRIVATE PRICING MODEL Car Dealer
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The impetus for change

• The growing affluence of our student body and
  worsening under-representation of low- and
  moderate-income students
• Significant shift toward private institutions as
  competitors
• Endowment does not allow for significant tuition
  discounting to compete against high price, high
  aid model employed by many private competitors

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The impetus for change

• Continued budget woes in the State of Ohio
• Republican-majority Ohio General Assembly
  encouraged free market principles,
  entrepreneurialism, and thinking outside the
  box
• Board of Trustees and Administration willing to
  take risks

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• Miami University Scholarship Tuition Plan

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• The Plans main goals
• -to make a Miami education more affordable for
  low and middle-income Ohioans
• -to provide incentives for top Ohio students to
  stay in Ohio
• -to provide incentives for students to study
  areas crucial to Ohios future
• -to highlight the value Miami students receive by
  virtue of their Ohio residency

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• The Plans goals (contd)
• -to broaden the diversity of the student body
  (geographic, socioeconomic, racial and ethnic,
  ideology, lifestyles, life experiences).
• -to enhance Miamis stature as a private-like
  selective residential university with a unique
  public mission
• -to encourage alumni support and gift-giving
• -to be revenue neutral for the state treasury
  when tax revenues are scarce

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How the Plan Worked (initial year) Old Tuition
Structure Ohio resident tuition
8,353 Non-resident surcharge
9,750 Total non-resident tuition
18,103 New Tuition Structure Single
retail tuition 18,103 Ohio student
scholarships (9,750) Net Ohio
resident tuition 8,353
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How the Plan Worked (initial year) Old Tuition
Structure Ohio resident tuition
8,353 Non-resident surcharge 9,750
Total non-resident tuition
18,103 New Tuition Structure Single
retail tuition 18,103 Ohio student
scholarships (9,750) Net Ohio resident
tuition 8,353
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How the Plan works Two Examples

• Case A No-need student not qualifying for merit
  aid
• Tuition (2004-05) 19,600
• OH Resident Scholarship (5,000)
• OH Leader Scholarship (5,000)
• Net Cost 9,600
• Case B High-need student not qualifying for
  merit aid
• Tuition (2004-05) 19,600
• OH Resident Scholarship (5,000)
• OH Leader Scholarship (6,250)
• Net Cost 8,350
• Notes 1. Scholarships are renewable up to 6
  years, or until graduation.
• 2. ORS indexed to per-student subsidy received
  from State of Ohio.
• 3. OLS criteria are financial need, academic
  qualifications.

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The Tuition Plan does not apply to

• Non-resident students
• Graduate students
• Regional campus students

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How did we do?

• Roughly 40 of in-state freshmen paying less than
  under old tuition system.
• Another 20 paying about the same.
• Of freshmen who completed FAFSA, 2/3 received
  additional OLS funds.
• In-state out-of-state applications increased
  all-time high.

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How did we do?

• Applications from 1st generation college students
  went up more than 25, as did applications from
  minority students.
• Under the plan, Miami has been able to reduce
  net costs for Ohio students from families with
  annual incomes below approximately 110,000.

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• Questions?????