Many Brandeis students approach their tuition bills with an ever-increasing sense of trepidation. Such is the price of attending one of the most expensive colleges in America. A 2003 study by The Chronicle of Higher Education pegged Brandeis as charging the 10th highest tuition in the country. The article attributed the high cost to the University's "lofty academic ambitions."

Although Brandeis escaped the Chronicle's top 10 list in 2004, our institution crossed the $30,000 mark with a four percent tuition increase this year, though this was lower than the six percent jump last year.

"I am on a lot of financial aid," Linda Kropp '07 said. "But even paying what's left is not easy; plus books are expensive and it makes it very difficult."

Why are tuition rates constantly on the rise and how exactly are tuition dollars allocated? Many students and families wonder what happens to their money once they send in their checks.

According to James Hurley, the associate vice president for budget and planning, such an exact allotment of revenue does not exist. Student tuition is combined with other revenue such as sponsored research and gifts to the University, and then dispersed to cover many different expenses.

"We try to keep our annual tuition increases as low as possible," Hurley said.



Revenue

Most of Brandeis' revenue is derived from the tuition and fees paid by students, but this sum alone is not high enough to cover the University's costs.

Hurley delineated different types of gifts that add to University revenue. Gifts for operations, he said, are annual funds raised by the development office. Sources such as alumni, parents and friends of the University donate these gifts, either through direct mailings or the phone-a-thon, which operates five nights a week.

Program addition gifts are gifts in support of specific activities in the University. Individuals or foundations contribute this money in support of programs like the Center for Ethics, Justice and Public Life or the Women's Studies Research Center. Both operations and program addition gifts are targets of a small tax from the government.

"Tuition doesn't cover all our expenses," Hurley said. "If we didn't have these gifts ...either tuition would have to be higher, or we'd have to take more money out of the endowment, which is not a desirable thing to do."

The current market value of the University's endowment is approximately $468 million, of which five percent, or about $21 million , is budgeted to be spent this year.

"We limit ourselves to the use of an annual draw of about five percent," Hurley said. "Any more than about five percent is not sustainable over the long term."

Other money comes from auxiliaries, derived mainly from the payments students make for room and board. This group also includes fees by outside groups for the use of university spaces, for example, the fees charged for events held at the Faculty Club.

The final category of revenue is called "other revenue." Hurley calls this a "catch-all," or "a collection of miscellaneous income." This group includes earnings from interest on investments and administering federal student loan programs, as well as money from library overdue fees and parking tickets. It also includes revenue from fees charged between departments for internal services, such as maintenance repairs or use of materials in laboratories.



Expenses

A common way to examine expenses is through services. Faculty and staff salaries are the most costly of these. Hurley estimated a three percent salary increase for faculty and staff in the past year.

Student wages and operating expenses are also supported by tuition, endowment and auxiliary revenue. Operating expenses include the costs of utilities and supplies, as well as operations like Aramark and student health services.

Developing the budget is a tedious year-long process beginning in the fall preceding the affected fiscal year, Hurley explained. The plan begins with a proposal, then progresses through many stages of scrutiny and approval. Discussions conclude with a finalized budget in October, at which point new deliberations must begin for the next year. The 2005 budget was finalized two weeks ago, and the process is already beginning for 2006.

Hurley explained that even as the planners finished the 2005 budget, they were already developing their approach to 2006, considering possible inflation and the financial climate. "The University is very sensitive to changes in the financial market and its impact on the endowment, so we watch it very carefully," he said.

Financial aid and merit scholarships also pose a significant expense for the school.

Brandeis supplies financial aid to students on the basis of merit and need. Students are also eligible for grants from the federal government, which is not included in Brandeis' expenditures.

Brandeis supplies financial aid to students on the basis of merit and need. Additionally, students are eligible for aid from the federal government, which is not included in Brandeis' expenditures.

"The University administers [the grants] but they're not part of our funds; we're essentially just the administrator between the government and students," Hurley explained.

Peter Giumette, the financial aid director, said there has been no notable increase in request for financial aid or in the average amount that students and their families are able to contribute toward tuition. Brandeis did, however, attempt to increase grant amounts this year in an effort to keep up with tuition increases.

"About 70 percent of undergraduates receive financial aid," Giumette said, "and this number has stayed relatively constant in recent years."

He further explained the breakdown for sources of financial aid with statistics from this fiscal year. He said that this year, just over 70 percent of the undergraduates are receiving a total of $55,276,024. Sixty percent of aid comes from Brandeis, 28 percent comes from the federal government, four percent comes from the states and eight percent comes from outside sources like private loans or outside scholarships.

Giumette called 2002 Brandeis' worst recent fiscal year; many families suffered when the stock market took a nosedive and some parents lost their jobs. However, Giumette said, the financial situation has stabilized and improved in the past two years.

Still, some students say that they don't understand where their money is going. Opinions differ as to how revenue is best spent. Caroline Vangrieken '06 said student input should be a part of the process.

"They don't even ask us how we want our money spent, she said. In her opinion, "not a single student would have voted for the new campus van. That's a huge waste."

Students also identified several areas they considered excessive.

"We apparently get 12 hours of pre-paid therapy with our tuition," Cindy Kaplan '08 said. "I don't want to pay for somebody else's therapy."

"Brandeis should cut all the free food they're always giving out," Yael Klein '08 commented. "From the day we got here, there's been food at every event. I don't need free food to keep me interested."

Hurley said that Brandeis continually strives to keep down tuition costs.

"We're always looking for ways to try to keep our costs as low as possible-but without sacrificing quality," he said. "So we're always looking to maintain that balance.