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North Park Dramatically Cuts Published Tuition Rate
By Craig Pinley
CHICAGO, IL (September 15, 2004) - Published tuition rates for incoming
first-year and transfer undergraduate students at North Park University
(NPU) will decrease dramatically beginning next fall, said President
David Horner during a press conference Wednesday morning in front of the
Old Main administration building.
Published tuition for first-time students for the 2005-2006 academic
year will be $13,900, representing nearly a 32 percent decrease from the
$20,350 published price for students who entered this fall. Planning has
been under way for more than a year in hopes that a significant
reduction in the published tuition rate will attract more applications –
and enrollments – to a school that Horner says "has never been stronger
than it is today."
Mark Olson, dean of enrollment and director of church relations,
believes the tuition decrease will boost the number of applications.
Approximately 1,600 individuals applied
to North Park last year with 30 percent of first-year students in that
group subsequently enrolling. He hopes the tuition decrease will boost
the number of applications to more than 2,000 and add a corresponding
increase in enrollments.
In his press conference announcement, Horner suggested that many
prospective students may have looked at the higher published price and
decided not to apply, dismissing the school as too expensive. Olson said
the published price can be misleading because very few incoming students
ever pay that listed price because of readily available academic
scholarships and financial aid packages that reduce the tuition expense.
He believes the decrease is a major step in helping North Park make a
more favorable first impression on families seeking colleges for their
children.
"We believe the high price – particularly when we crossed the $20,000
barrier – discouraged students from even applying," said Olson. "Most
believe the published price is the true reflection of cost - they don't
know what huge discounts schools give (to
lower the net cost). We believe this decrease will be more
straight-forward, more honest and easier to understand."
While a tuition decrease might look good on the surface, some could
think the tuition decrease is too good to be true. North Park Board of
Trustees member Stanley Helwig said that in some people's minds, "if you
give a lower tuition then you're not going to get the same quality of
education."
One media member asked if North Park will cut costs in various areas to
offset the risk. Horner said that no cuts are being planned at this
time, pointing out that the university will soon launch a capital
campaign to raise $52 million over the next five years.
North Park's statistics already appear attractive. Enrollment (2,900
students) has tripled over time and an endowment of $35 million (as of
June 30 this year) is seven times as large as it was in 1990. A new
athletic complex, new landscaping of the campus and a growing seminary
are three other positive aspects for the school to tout. Still, the
Board of Trustees decided to assume the financial risk inherent in
reducing tuition, mindful that a few other schools that have followed a
similar course have reaped the benefits.
Muskingum College in New Concord, Ohio, decided to reduce its tuition by
$4,000 in 1995 and applications doubled, resulting in a 50 percent
increase in enrollment and national attention as a turnaround campus
labeled as one of the "best buys" in
the U.S. More recently, Eureka College in central Illinois implemented a
significant change in tuition prices and early results have been
encouraging – the school
advertises itself as "Quality Education Without the Sticker Shock."
Horner believes North Park is the first school in a major metropolitan
area to attempt a large tuition decrease. It is doing so without a
guarantee of additional funding by the Evangelical Covenant Church,
which owns the university and gives North Park more than $1 million per
year from the ECC's Coordinated Budget. The school plans a comprehensive
marketing campaign in coming months under the theme "Let North Park
Surprise You." Judging by the media turnout for today's press
conference, North Park is off to a good start.
"David (Horner) and I and others have been talking about this for at
least three years," said Helwig. "This was not a slam dunk - not
everyone on the board supported this. But on a risk-reward basis, I
think we're doing the right thing."
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