Thanks for the ten-spot, Monk
By MIKE CONNOLLY
Editor in Chief
Generations has collected millions of dollars for financial aid at Notre Dame. This is a wonderful thing. But has the Notre Dame administration ever considered that part of the reason there is such a need for financial aid at Notre Dame is because tuition is so high?
Wednesday, University President Father Edward Malloy announced that tuition would increase 4.9 percent next school year. This is the smallest percent increase in tuition since 1959.
Why does Notre Dame need to increase tuition? With millions of dollars rolling into the University, why does Malloy need even more money?
The 4.9 percent increase in tuition means that a Notre Dame education will cost $30,530. Last year, Notre Dame required $29,100 per year to attend. That's an increase of $1,430.
In 1999-2000, tuition was $27,660. With a 5.2 percent hike in tuition, Notre Dame raised tuition $1,440. So that .3 percent drop in tuition increase amounted to $10 less dollars in tuition increase. $10. Thanks Malloy, that will really save my parents a lot money.
Good news Mom and Dad, Monk is screwing you over $10 less this year.
The 2000 enrollment numbers have not been released but last year, there were 8,014 undergraduates at Notre Dame. Assuming that there are about the same number of students attending Notre Dame, that 4.9 percent tuition increase will mean $11,460,020 more for the University. Eleven million dollars is a lot of money ... until you look at the endowment.
Notre DameÕs endowment is currently at $3.5 billion, according to the Wall Street Journal. Assuming that Notre Dame has a bunch of trained monkeys investing the endowment and can only earn 1 percent interest, Notre Dame is still earning $35 million a year in interest on the endowment. Since the Notre Dame business office is obviously more competent than a bunch of trained monkeys, it is probably getting more than a 1 percent return on the endowment.
But let's just assume they can only earn $35 million a year, if Notre Dame applied that interest to eliminating the increase in tuition, that would still leave them with $23.5 million in interest alone.
Twenty-three million in interest on the endowment without increasing tuition.
I understand that the endowment should be used to help the future of the University, but this is ridiculous. Notre Dame costs more that $30,000. I am willing to bet that many staff members at Notre Dame do not earn $30,000 a year. If Notre Dame doesn't do something about the escalating tuition, there will be no future University for the endowment to help. No one will be able to afford to go here.
Increasing financial aid is a noble pursuit, but why not eliminate the need for financial aid. The higher Notre Dame tuition climbs, the less affordable Notre Dame becomes. The less affordable Notre Dame becomes, the more financial aid will be required.
So freeze tuition. Use some of the interest on the endowment to keep tuition down.
But for now, I guess my parents will be happy with the $10 they are "saving" this year. Maybe they can use that to pay for food, clothing, transportation and shelter.
All News Stories for Monday, March 19, 2001
