Despite cuts in universities’ budgets, students still applying

With the economy in a slump, the number of people hoping to obtain a degree in Indiana is on the rise, even with possible further cuts to state funding and hopes from IU officials to reduce the size of the incoming freshman class.

That means getting into and paying for college are going to be harder to do.

Last year IU saw a record of about 31,000 applicants, and the number of people applying is on the rise.

“At the moment we are not seeing a significant impact in terms of applications,” said Roger Thompson, vice provost of enrollment management. “We are up 10 percent in terms of applications compared to a year ago.”

He added there is currently a “boom period” of high school graduates.

Hanover College, a private school in Hanover, Ind., is experiencing a record-breaking 45 percent increase in applicants.

Despite the school’s relatively high price tag – slightly less than $30,000 per year – officials there say the key to keeping enrollment high is to maintain competitive financial aid.

There are 1,050 students enrolled at Hanover College, according to the school’s Web site.

“Historically schools do better in times of recession because people realize how more important it is to get a college degree,” said Rhonda Burch, Hanover’s director of communications and marketing.

But it is a different story for other colleges nationwide.

One-third of state institutions’ revenue is from state appropriations, and across the nation some universities are looking at 20 to 30 percent cuts in government funding, said Philip Powell, clinical associate professor in the Kelley School of Business.

This will mean about a 10 percent cut in an institution’s revenue.

IU is currently bracing for budget cuts from the state.

“Our state is in much better budget shape, so we will experience a cut, but it will not be as large,” Powell said. “Our governor has balanced the budget. I give all the credit to him.”

With more cuts to the revenue, some say tuition will have to increase.

Powell said the new presidential administration realizes the need for loans as the economy struggles and jobs are scarce.

“People are placing more reliance on federal loans,” Powell said. “Those aren’t going anywhere. If anything they will increase.”

And with this year’s freshman class the largest in history, Thompson said University admissions needs to become more selective.

“Our goal is to shrink a little bit,” he said. “We felt that this year’s freshman class is a little bigger than desired.”

Naturally, an increase in applicants plus a desire to decrease class size will only make it harder for high school seniors to get accepted.

“You have to be an even better student,” Thompson said.

Bedford North Lawrence High School’s Director of Guidance Rebecca Sprinkle has been encouraging parents and students to seek financial aid if money is tight.

In December, the school hosted a financial aid workshop for parents and students, discussing what to do if a family member is laid off, she said.

“There has not been a reduction in scholarships available for students, but that might change in time,” she said. “We encourage students to apply for everything.”