Jo Hyun Kim, Rhonda Kline, Charles Gilbert, Rachel Smith Western Illinois University

Introduction : Development of the Cost Guarantee Program

 As tuition and prices for books and room and board continue to rise, students and parents are searching for tuition-and-fee stability in an unpredictable economic environment.  Major Goals Of Families - having a predictable cost for college. Of Students - Providing added incentive to complete their degrees in a timely manner. Of the University - Meeting the long-standing goal of a high quality, affordable education.

 Looked at the possibility of offering in  Studied other institutions’ cost guarantees.  Developed a first cost guarantee model.  After much discussion among university administration, the Board of Trustees, students and faculty, the university developed the final cost guarantee model.

 Began in Fall 1999 and was offered to all undergraduates matriculating that semester.  No change in tuition, fees, room, and board for four years, or the normal time to obtain a degree, as long as the student remains continuously enrolled. ◦ Cost Guarantee to graduates in Fall 2004.

 Growing interest in tuition-and-fee stability in an unpredictable economic environment, more colleges and universities are implementing cost guarantees (FinAid, 2007; Kim, 2004).  Concerns were expressed regarding the values and merits of a cost guarantee (Morphew, 2007).  No study has attempted to examine the impact of a cost guarantee.

 The primary purpose of this study is to investigate how the Cost Guarantee program impacts student enrollment, retention, and graduation in a comprehensive public university.  This study also examined how the Cost Guarantee influenced annual college attendance cost.

1. Did the Cost Guarantee policy make the university competitive in attendance cost, compared to other public universities in the state? 2. Did the Cost Guarantee policy increase student enrollment? 3. Did the Cost Guarantee policy improve student outcomes, particularly retention and graduation rates?

 Data Collection ◦ Secondary data set ◦ Trends data for cost of attendance, new freshmen enrollment, retention, and graduation rates of 12 Illinois public universities ◦ From IBHE Data Book and IPEDS Peer Analysis System and CSRDE reports  Data Analysis ◦ Descriptive statistics

Did the Cost Guarantee policy make the university competitive in attendance cost, compared to other public universities in the state? Question 1.

FY2000FY2001FY2002FY2003FY2004FY2005FY2006FY2007 Univ. A Univ. B Univ. C Univ. D Univ. E Univ. F Univ. G Univ. H Univ. I Univ. J Univ. K WIU 1st WIU 2nd WIU 3rd WIU 4th

FY2000FY2001FY2002FY2003FY2004FY2005FY2006FY2007 Univ. A Univ. B Univ. C Univ. D Univ. E Univ. F Univ. G Univ. H WIU 1st WIU 2nd WIU 3rd WIU 4th

FY2000FY2001FY2002FY2003FY2004FY2005FY2006FY2007 Univ. A Univ. B Univ. C Univ. D Univ. E Univ. F Univ. G Univ. H WIU1st WIU2nd WIU3rd WIU4th

 Results confirmed that the cost guarantee program helped the university become more competitive in attendance cost compared to other public universities within the same state after the policy implementation. ◦ FY2004 and FY2005, the university’s second, third and fourth year students were paying the lowest tuition rates of Illinois public universities.

Did the Cost Guarantee policy increase student enrollment? Question 2.

 Table 2-1. Number of Enrollments at Illinois Public Universities: Fall 1992-Fall 2006 (in Handout)  Table 2-2. Annual Enrollment Change (%) (in Handout)  Table 2-3. Annual Enrollment Change Rank (in Handout)

 Cost guarantee program enhanced student enrollment ◦ New Freshmen average enrollment headcount comparison  1,597 from fall 1992 to fall 1998  1,867 from fall 1999 to fall 2006  16.9% increase (3 rd highest increase among 10 Illinois public universities with data) ◦ New Freshmen average annual enrollment rate change comparison  0.8% from fall 1992 to fall 1998 (sixth highest among 10 public universities)  2.0% from fall 1999 to fall 2006 (third highest among 10 public universities)

Did the Cost Guarantee policy improve student outcomes, particularly retention and graduation rates? Question 3.

Univ. ANA62%70%76%NA 58%63%60%NA57%53% Univ. C77%73%74%75%76%79% 80% 83%84%85% Univ. D74%71%73%77% 76%77%76%77% 78%79% Univ. E71% 69%70%68%69%68%65%71%68%70%68% Univ. F63%65%70% 74%71% 72%69%75% 76% Univ. H91% 92% 91%92%90%93% Univ. I60%66%65%67% 68%69%72%69% 70%69% WIU66%67%69%70%73%74% 75%76% 77%79%

yr6yr4yr6yr4yr6yr4yr6yr4yr6yr4yr6yr4yr6yr Univ. A Univ. B Univ. C Univ. D Univ. E Univ. F Univ. G Univ. H Univ. I WIU

 Findings from this study support positive impacts of the cost guarantee policy on student enrollment, fall-to-fall retention rates, and four-year graduation rates. ◦ The first year retention rate of first-time full-time degree-seeking students has continued to increase, except for the 2002 cohort. ◦ Cost guarantee improved four-year graduation rates, but limited impact on six-year graduation rates. ◦ Cost guarantee program improved student retention and graduation rates when compared to other Illinois public universities.

 Study supports positive impact of the cost guarantee policy on student enrollment, fall-to-fall retention rates, and four-year graduation rates.  The implementation of a cost guarantee which covers not only tuition, but also fees and room and board, makes college costs more predictable and enables parents and students to enter the university knowing in advance what their four-year cost will be which allows them to plan college costs accordingly.

 Seeing the success of the university’s cost guarantee, the state passed a “Truth in Tuition” law and mandated all public universities in the state to provide a tuition cost guarantee beginning in fall 2004.

 Use long-term data for future study.  Evaluate other impacting factors such as: ◦ Financial aid ◦ Change in family income ◦ Unemployment rate  Use different research design such as: o Experimental studies o Quasi-experimental studies comparing control and non-control groups