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Polling and Market Research Since 1984
AHEAD OF THE CURVE
August, 2006
Volume 2, Issue 7

The Cost of a College Education

College Still Seen As a Value

Living Costs Almost As Much as Living

Paying Back Those College Loans

Heading into Autumn

Parental Attitudes About College Life in 2006

The Board of Trustees of a prestigious college for women in the northeastern United States reluctantly announced to returning and prospective students that it was forced to raise its annual tuition and residence hall charges – to $1,350 per year.

The year was 1946 – 60 years ago – and my, have times changed. Running that number through a cost of living calculator provided by the Web site of the Federal Reserve , that same college should cost about $14,019 today. That sounds about right – right?

Well, yes, if you’re talking about a typical state college. But our school is anything but typical – it’s an exclusive university with a superb location and sterling reputation. If your student can make the academic cut, it will cost you nearly three times what our inflation calculator would indicate – some $41,700 for tuition, room and board. That’s not counting books and supplies, which will cost another $1,850 – $500 more than the cost for tuition, room and board 60 years ago.

American consumers have different ideas about what’s going on with the costs of sending a child to college, and we explore them in this edition of Zogby’s American Consumer newsletter.

First things first: when asked why they thought the cost of higher education had escalated so much, 42% said they believe that schools know they have something that is highly valued in our society, and that they charge what the market will bear. Some thought that the professors’ salaries were forcing cost up, and about 29% thought it might be something else or admitted they weren’t sure.

Among those parents with kids in school, more people than not say the increased cost of a private college is not worth it
46% said additional costs are not worth it
32% said additional costs are worth it
22% were not sure




Volume 2, Issue 4 Page 2

(Continued from Page 1)

Why spend the money and effort for a college education? The answer is; education is a highly valued prize – and despite the fact that it costs more than many think it’s worth… 98% of our respondents said that getting a college education was important. Beyond that, 88% said that a post graduate degree is important in today’s world.

So, let’s go back to the beginning – the college selection process. We asked what was the major factor in choosing which school to apply to and attend. 48% indicated that first on the list was course of study, 26 % looked at the cost before going any farther, 12 % felt that the first priority was the overall personality of the campus while 7% checked the map for best location. Finally 4% would be glad to go to “anyplace that would accept them.”

Once the search was narrowed to the top three schools with the right course of study in the right part of the nation, cost became a much more important factor in the selection process. Then, 68% said that the cost was a huge factor, while 29% said that cost played only some roll in their decision.

So, with skyrocketing cost of higher education, a natural question becomes how acceptable is a 2-year community college is –especially as an entrée to a four–year school. Americans answered in the affirmative with a resounding 84% saying that “a community college is an acceptable place to start.” Besides the reduced cost, 22% would consider a community college because of the adjustment period if offers students after high school. Another 15% said spending time at a community college made it easier for them or their children to decide on a major course of study.


There are other questions we explored in our survey such as, who benefits more from a college education; the individual or the community as a whole? Should the government provide more financial assistance then it presently does?

Overall, those that believe that the government should provide more help have the larger numbers – 50% said yes, 42% said no and 8% were not sure. Looking at the internals, we find that the difference is in political philosophy, and one can see the division largely along party lines. Democrats at 90%, believe more strongly than Republicans at 28%, with Independents at 42%.

The On–Campus/Off–Campus Question

Most students begin pressing for an apartment as they move from their freshman and sophomore years into upper classman status, but what do parents think about this? Nearly six in ten (59%) said they thought it was better for their children to live in an on–campus dormitory, rather than an off– campus apartment. One in five said they thought it would be fine for their kid to live off–campus, and another 20% said they just weren’t sure.

Many colleges charge a premium for those kids who want to live in newer dormitories. It’s a way for schools to recoup some of the cost of those new buildings, many of which include all the luxuries one could want under one roof – including shopping, swimming and health club facilities, and restaurants. Oh, and some of them also include computer labs and other amenities that help students with their studies.

 






Volume 2, Issue 4 Page 3

(Continued from Page 2)

The Cost of Living Beyond the Learning

When asked whether it was appropriate for schools to charge extra for kids to live in these newer dorms, respondents were evenly divided. Forty–two percent said such a pricing policy made sense, while 40% disagreed, and 17% were not sure. We found an interesting geographic difference on this question – Americans from the south are much more willing to pay extra for newer dorms (61%), which makes one wonder if those old dorms in Dixie lack air conditioning. Older American’s – those age 70 and over – said they are less willing to pay more for newer and better dorms.

Students should be glad to discover that the overwhelming majority of parents said they think it is worth the cost of a college meal plan to guarantee their kid has healthy food every day. These meal plans can be expensive, but the alternative – living on junk food – is unacceptable, parents believe. Given the cost of tuition, it’s helpful if students are healthy enough to make it to class.

The cost of college textbooks is another factor in the college equation. Perhaps the most surprising discovery we made was that the price of a popular economics textbook (listed for $88.64) could be found at wildly differing price points – from $184.36 plus shipping from a Corpus Christi, Texas bookstore, to $27.85 for a used copy from an on-line store. Given that immense spread in pricing, it comes as no surprise that most parents (67%) were happy to encourage their student to find and buy used textbooks – particularly given the ease today of buying textbooks online, especially when students plan ahead a week or two so they can have their books shipped before classes start. However, some schools and professors discourage such practices as buying texts online, especially out-of-date editions, and structure their assignments to focus on the material exclusively in the newest editions.

Perhaps in part because of this, 25% of those in our survey said they thought their children should get the newest and latest copy, while 8% were not sure.

As anyone with a student in college knows, there are many more expenses associated with modern life at a university beyond the tuition, books, room and board – not the least of which is transportation. Some students attend school in big cities and require no independent means of getting here and there. Still, they require cash for subway or bus tickets. Across the country, most, according to our survey, need a car. Whether they need one or not, 77% said their students have a car at school.

Another sign of modern student life is the credit card, though most parents wish this was not the case – 64% of parents said it was a bad idea for kids to have their own credit card at school, which is in direct conflict with those ever–present offers that rain down upon kids beginning with their first visit to campus.

Nearly a quarter of respondents – 23% – said they thought it was a good idea for their student to have a credit card at school, and 13% said they were not sure.

So what about the ubiquitous cell phone? Well, it’s ubiquitous for a reason – 88% said they think it’s a good idea for their student to have one at school, while just 7% said it was a bad idea.

 





(Continued from Page 3)

It is stating the obvious to say that computers have become an essential tool for today’s student. Many schools provide them in classrooms, labs and libraries, and some include them in the tuition package every student pays. You show up for classes, and they hand you your laptop. Not only is this convenient, it facilitates easy repair (since every student has the same computer) and cuts down on pesky problems like theft.

But since not every school approaches technology in this way, we asked parents about their own student’s cyber situation, and found that 86% have their own computer, while 12% rely on the ones provided by the school. Nearly 67% said their student prefers a laptop, while 25% use the larger desktop models. As laptops become smaller, lighter, and faster with more capacity than many desktops, watch for the trend toward laptops to continue apace.

Those College Loans

Given the cost of a college education has far outstripped the rate of inflation, we asked if parents or students had borrowed money to help pay for school.

Sixty-four percent said, yes, they have borrowed to pay for college, while 36% did not. The other side to the coin is the question of who is responsible for paying the money back? Twelve percent of parents said they were responsible, while 46% told us that the student was bearing the load, and 42% said they are sharing the responsibility with the student.

Does a student's cavalier attitude about studies force a parent to think twice before going out on a financial limb for them? Well, yes it does, our survey shows. Nearly three out of four parents with a student in school - 74% - said that “yes”, their student’s academic track record does play a role in their willingness to help finance school. Twenty-four percent said it did not.

The poll also showed that parents are relying on an old reliable source of help to get through the college years – the part–time job. Nearly three out of four (73%) said they want their kid to work a part–time job to help cover costs. One in five said such employment would go specifically to help defray the cost of schooling, while a third (32%) said it would provide spending money.

Overall, the cost of higher education in America appears to reflect several enduring American tenets - that you must work hard and pay a price to get ahead, that in most cases you get what you pay for, and that, for most parents, it is worth it to sacrifice whatever is required to see that their children are prepared to live the American Dream, but that they expect their children to put in the time and effort to make the most of their educational opportunities.

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Zogby International: Keeping Your Company and Your Clients Ahead of the Curve Since 1984.
For more infomation about polling and market research, contact Chad Bohnert at (315) 624-0200 ext. 237 or chad@zogby.com

Zogby's American Consumer Newsletter
Zogby’s American Consumer Publisher
John Zogby
President & CEO, Zogby International
Editor-in-Chief
Fritz Wenzel
Writer

Mark Warner

Managing Editor
Marc Penz
Copy Editor
Joe Zogby
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