Student Union of Michigan

Student Union of Michigan:

Like many public research universities around the country, the University of Michigan has raised tuition significantly over the past two decades. But administrators argue that in the end tuition hikes don’t make it harder for low-income students to attend.[1] Through financial aid, they claim, the high tuition paid by wealthier students who can afford it is used to offset tuition for lower income students. The argument is that the “high tuition/high aid” model works like a kind of progressive taxation, so paradoxically what those who criticize the university’s high tuition are in fact advocating is punishing the poor.

Unfortunately, the administration’s theory has some serious problems. It is true that the poorest students at U-M receive excellent financial aid packages made up primarily of grants instead of loans or work-study, which means they aren’t forced into debt or exploited to pay tuition. However, the number of students who meet these qualifications is steadily decreasing in both absolute terms and relative to the entire student body. Looking at the class composition of the student body, we can see some major changes over the past 15 years. Between 1997 and 2010, the percentage of the student body whose family income is under $75,000 a year dropped from 38.5% to 26.5% (a decrease of 12%), while the percentage whose family income is over $200,000 a year rose from 14.8% to 27.6% (an increase of 12.8%).[2] The growth in the richest sector of students was so significant that they actually added an extra income category to the list—instead of the maximum being $200,000 and above, they bumped it up to $250,000 and added another in between. The latest data only confirm this trend. As of 2014, a full 31% of admitted students have a family income of $200,000 and above.[3] These changes in the socioeconomic status of the student body have also intensified the ongoing exclusion of underrepresented minority students on campus. The implication is that even as the university brings in more tuition money—and therefore, according to the “high tuition/high aid” model, more aid—the number of students who actually need this aid is shrinking significantly.