It’s rare for a college to tell a prospective student that their school may not be affordable enough for them to attend come fall. For a year, New York University did just that, calling admitted students and their parents and families to talk about the debt they could get themselves into if they chose to attend the pricey college. Citing little effect on enrollment rates, however, the school will not be pursuing a similar effort this summer, according to a recent article in The Chronicle of Higher Education.
The purpose of the calls was to make sure students and parents were aware how much an education at the school cost long-term. NYU doesn’t offer as much “free money” in scholarships and grants as many other schools, leaving students no choice but to take out student loans to cover the more than $50,000 annual tuition, fees, and room and board bill. According to previous articles on the school’s efforts in The Chronicle, the 58 percent of students who carry debt loads once graduating from NYU do so with an average of more than $33,000 in student loans. (The national average hovers around $20,000.)
NYU won’t be abandoning all efforts to inform students and parents about the costs of attending the college. Administrators say they’re now looking for ways to make sure those admitted know of ways to finance the “significant investment” that is NYU, according to The Chronicle, and that these efforts need to start sooner rather than later when students are still deciding where to enroll. The college also plans to give students a more “general financial education” rather than giving them advice based on their specific circumstances. However, Randall C. Deike, NYU’s vice president for enrollment management, said in the Chronicle article that he has already told some students it may be better for them to start out at a less expensive college and then transfer to NYU later on.
NYU has gotten quite a bit of criticism lately from students graduating with mountains of debt, degrees in the humanities, and limited job prospects. One article last month in The New York Times took a look at Cortney Munna, a 26-year-old graduate of NYU with nearly $100,000 in student loan debt. Munna is saying she wasn’t counseled properly about the true cost of college and what it would be like to repay a loan that high once she was done at NYU. According to The New York Times article, it was NYU that suggested she take out an additional $40,000 private loan when she and her mother found that the lower-interest student loans didn’t cover all of the costs of attendance. The college has since said it would have been inappropriate for them to counsel Munna out of NYU, or to counsel her out of taking on more debt to remain at the school. Who is to blame here? Were Munna and her mother naïve in assuming they could handle the loan? Should private lenders consider students’ existing loan totals when doling out funds? Should the college have been more forthright?