Dartmouth President justifies price hikes claiming education still worth twice the tuitionPosted: March 10, 2011
This week, Dartmouth’s President Jim Yong Kim defended recent tuition hikes in front of an assembly of students. The Dartmouth reports in “Kim fields students’ criticism, questions” that Kim justified the tuition hikes by blaming the budget deficit. Kim went on to remind students about the “bargain” they receive with a Dartmouth education and the high lifetime value generated by this education:
“Despite the increased cost, the College is still discounting students’ educations — which are worth twice the amount of tuition costs — by 50 percent…
Kim emphasized the value of an Ivy League education, citing the evaluations of economist and Yale University President Richard Levin. Levin estimated that a four-year college degree increases an individual’s income by 40 percent…”
Kim also claimed that financial aid is absorbing much of the hit for needy families.
Kim’s stance on return on investment (ROI) sums up the defense best: “Your return on investment of going to Dartmouth is higher than it’s ever been before.”
I could not tell from the article whether these answers mollified any frustrated students, but I think they are on the right track to question these constant price hikes that well-exceed the existing level of inflation.