Wesleyan students start investment fund
A growing number of college students are pushing for a voice in how colleges invest - and spend - their endowments. Now, Wesleyan University students have taken matters into their own hands, creating what appears to be the country's first investment fund run by a college student government.
Beginning this month, the Wesleyan Student Assembly plans to invest some of the $750,000 it collects each year from student fees with a goal of lowering, and possibly eliminating, the $270 charge. The money is distributed to student groups each fall, but money is often returned unspent at year's end.
Student leaders will manage the endowment independently, although Wesleyan financial administrators will advise them.
The assembly expects to start the fund with a $30,000 contribution, and has pledged not to dip into the proceeds until it reaches $100,000. When the endowment exceeds $200,000, the assembly can spend 4 percent annually.
Amenities U: The "academic arms race" - the competitive pressure to build better dorms, recreation centers, and dining halls to attract students - is a primary cause of higher tuition costs, according to a new survey of financial officers at nearly 100 private colleges and universities.
Student amenities outpolled rising healthcare costs, declining government support, and growing faculty salaries as the leading reason tuition at private universities has climbed nearly a third during the past five years.
"The pressure colleges face to attract the best students and to appeal to them by keeping up with their competitors is a major driver of rising college tuition costs," said Nancy Farmer, president and CEO of Independent 529 Plan, which commissioned the study. "Whether through new technology, dorms, or recreational facilities, colleges want to differentiate themselves and provide students a state-of-the art education."
Almost 80 percent of respondents said they expected tuition increases would continue to outpace inflation, but less than half said the hikes would change the composition of the student body. More than 60 percent, however, said debt limits students' choices after graduation.
Admissions fears, misconceptions: Admissions officers appear to be a good deal more worried about the impact of rising tuition. A separate survey suggests that college affordability and cost is the most daunting problem they face.
But the first-of its-kind survey of 461 admissions deans and enrollment managers, conducted by Concord higher education consultant Maguire Associates for The Chronicle of Higher Education, also found that admissions officers believe some families exaggerate college costs and are unclear how financial aid works.
Many admissions officers report that some families overestimate the level of selectivity at most colleges and do not understand what applicants need to do to be accepted.
"There is a misconception that the process is complicated and it's hard to get into universities," one admissions official at a public institution wrote in the confidential survey. "That may be true for highly selective institutions, but for the vast majority of higher-education institutions across this country, the process is straightforward and clearly stated."
As for admission officials themselves, they are overwhelmingly white (89 percent) and 61 percent are male. Three-fourths are 40 to 65 years old, and 28 percent are graduates of the institutions where they work. They work long hours, with nearly three-fourths reporting they log 50 hours a week or more, and are well compensated, with more than 22 percent earning $130,000 or more.
Campus Insider runs on alternate Sundays with Ask the Teacher, an advice column. To submit tips to Campus Insider, e-mail Peter Schworm at schworm@globe.com.
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