UW-Madison spends less on students, on average, than other public universities across the country, a new study shows.
One hundred and fifty schools nationwide participated in the study, conducted by the National Association of College and University Business Officers. It detailed the percentage of state funding each participating school spends on students for financial aid in order to document the cost of higher education. UW-Madison, UW-Platteville and UW-Whitewater were among the public, private and community colleges participating in the study.
The three schools came up short on money spent, with an average of $8,708 per student in a range of $7,000 to $15,000 for public schools in the survey.
In addition, the UW schools spent 1.6 percent of their budgets on financial aid, while other four-year public schools spent 5.5 percent on average.
Matt Fargen, president of UW’s governing body, United Council, said he thinks the survey’s data shows financial aid provided by the university to students is not adequate.
“This is a continuing trend,” he said. “Having strong financial aid is a priority for students and it needs to remain a priority.”
But the study defines financial aid as institutional grants, not including student loans or state and federal grants.
Overall, the amount of money required to subsidize programs and related services to undergraduate students is greater than the amount students pay in tuition and fees, the study shows.
Also, UW leads the nation in research funding, much of which may have been included in the university’s budget but would never have been intended to go toward financial aid.
Fargen said he feels UW officials should give more priority to increasing financial aid at the same rate as tuition.
“In the past 25 years there has been a serious decline in the state support of higher education,” he added.
UW officials have listed financial aid as a funding priority in the past but were unavailable for comment over the weekend.
The Cost of College Project was initiated in response to a call for more transparent data about college costs and prices from the National Commission on the Cost of Higher Education in its report, “Straight Talk About College Costs and Prices.” The congressionally mandated report recommended that institutions of higher education develop better and more easily understood consumer information about the costs and prices of providing an undergraduate education.
“From past experience, efforts on campus to explain our costs were well received by students and parents,” Carol Campbell, vice chancellor for finance and business at Texas Christian University. “They felt they were getting a better value when it was pointed out that no student pays the full price for what it costs for their education.”
The report took three years to develop and test at colleges and universities around the county. The committee was comprised of business officers, economists, presidents, cost accountants and other experts to oversee the project.
The study also showed that for the three UW campuses, the average student subsidy was $5,548. The range for public schools was $4,000 to $11,000.
Fargen said he would like the study to serve as a wake-up call for state and UW administrators.
“I hope Wisconsin is not content to rest on its laurels and continue this race towards the bottom,” he said.
