Forum
Economics of financial aid
Spider alumni and parents often ask me about the cost of a University of Richmond education and financial aid availability. Tuition increases get a lot of attention, and for good reason. Since 1991, the year I graduated from college, UR’s tuition has increased by a factor of about six. But over that same period, thanks in large part to the generosity of our community, our investment in financial aid has increased by a factor of about 20 (from about $5 million to about $100 million per year, which is more than a quarter of our annual operating budget).
Last fall, in the course I co-taught called The Economics of the University, I told my students that, similar to purchasing an airline ticket or booking a hotel stay, at universities people pay different prices for the same product. Some pay the full sticker price, some pay zero, and some pay amounts in between. I also explained that every one of our students is subsidized. The university spends well beyond the full sticker price to maintain our unwavering commitment to small classes, exceptional teaching and research, close mentoring relationships, career readiness, student well-being, and experiential and international learning opportunities. It costs a lot to do what we do, but what we do is transformative. And thanks to extraordinary alumni support for generations, Spider Management’s careful investment of our endowment resources, and principled spending by university leaders over many generations, every single one of our students is relieved of some of the costs.
“To continue our university’s upward trajectory, I strongly believe we must continue investing in financial aid.”
We’re also fortunate to be among the 2% of American colleges that can admit traditional undergraduate domestic students independent of their financial circumstances and meet the full demonstrated need for all. Overall, two-thirds of our families pay less than UR’s sticker price, thanks to need-based and merit-based financial aid and athletic scholarships. We similarly heavily invest in aid for our graduate and law students.
To continue our university’s upward trajectory, I strongly believe we must continue investing in financial aid. We will do this by redirecting some resources, carefully stewarding the endowment, and raising even more funds to support our students. My wife Tina and I are very serious about this. That’s why we gave to endow our own family scholarship, and we continue to give to support Spiders. With your help, our university can increase need-based aid to recruit remarkable students from all points of the family income distribution, invest in scholarships for academic excellence, and bolster athletics aid to continue elevating our student-athletes and celebrating our Spider Nation.
I’m hitting the road again this semester, seeking your support for our unwavering commitment to access and affordability. It is exciting and a delight to share updates about the transformational power of a UR education. I hope you will join us in supporting current and future Spiders and continuing to strengthen our outstanding university.