Feb. 23, 2013
/PRNewswire/ -- After an 18-month community-wide discussion, the
Board of Trustees has voted to retain the college's need-blind admission and financial aid policies—for now.
With the vote, the Board instructed the college to deploy new strategies that will enhance net tuition revenues and also affirm the college's commitment to need-blind admission and meeting 100 percent of demonstrated need.
The vote was announced by
's Board of Trustees at the conclusion of its regularly scheduled meeting on Saturday.
As a condition of the vote, the college will conduct an annual assessment of endowment performance, philanthropic support and net tuition revenue. The Board will decide by autumn 2015 whether the college is making sufficient progress toward fundraising and net tuition revenue goals. If the trustees determine that insufficient progress has been made, then they will have the option to instruct the college to pursue more aggressive enrollment management strategies, or may choose to end
's need-blind policy effective with the class enrolling at
is generally listed among the nation's most affordable institutions, and the college's budget discussions were precipitated in large part by the uncertain long-term financial prospects of global investment markets. As of
Jan. 31, 2013
's endowment stood at
relies more heavily on its endowment than most institutions;
's endowment provides more than 50% of the college's operating budget.
currently takes 4% from its endowment returns annually to fund operations.
"This is the right decision for
at this time," said
Raynard S. Kington
, president of
has long maintained one of the most generous financial aid programs in the U.S. Our leadership in this area has allowed us to attract and enroll the most talented students from all over the world, and to provide them with an academic and co-curricular program that is among the very best in the nation. We are committed to keeping
affordable. By retaining our need-blind admission and financial aid policies, while resolving budgetary shortfalls through increased philanthropic support and net student revenues, we can maintain our simultaneous commitment to excellence and access, thus ensuring that a
education remains available to all for years to come."
Board's decision comes at the end of an open, 18-month discussion of the college's budget, the nation-wide financial outlook and available budget management strategies.
students, faculty, staff, alumni and parents were invited to participate in the discussion through e-mail, letters, in-person and online presentations, and a special website (grinnell.edu/grinnellsfuture). Thousands of constituents took part in the discussion.
"We are gratified that so many Grinnellians chose to be part of this important conversation," said
'89, chair of
's Board of Trustees. "We wanted to establish a process that was inclusive and participatory, reflecting the best values and traditions of
. The level of care and commitment to the college was evident in the feedback we received, and the ideas we heard from Grinnellians everywhere really shaped our thinking as we made our decision."
In order to secure the money needed to reduce budgetary shortfalls while remaining need-blind,
will implement a number of administrative changes designed to increase net student revenues, while also undertaking a complementary, sustained fundraising effort. Beginning in the 2013-14 academic year, the college will raise its loan cap, which is currently
for all four years, to
in the first year,
in the second year and
students currently graduate with less debt than students from any other accredited public or private college or university in
, and with less debt than students from most of
's peer schools nationally," said Kington. "We believe that these upward adjustments in the loan cap will keep
among the most affordable colleges in the U.S., while providing added revenue that will support our programs in the years to come."
will adopt measures that other colleges have long used to attract students who can contribute a greater share of resources.
"These strategies were chosen as part of a comprehensive, prudent plan addressing the Board's expectation that the college will increase net student revenues," said
, vice president of enrollment and dean of admission and financial aid. "The Board has given us a clear charge, and they join us in the hope that the college can address its structural imbalance by improving student revenues and increasing philanthropic support."
The college will also continue its efforts to control costs by realizing savings and maximizing efficiencies at every opportunity.