Instructions in the preceding vignette

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INSTRUCTIONS: Read the instructions in the preceding Vignette(s), select one of the two scenarios, and articulate fully your argument and rationale in favor (Pro) or against (Con) for one of the viewpoints

Background: At NDNU we are dedicated to need-based financial aid and believe that we have a responsibility to evaluate a family’s ability to contribute in an equitable and consistent manner, recognizing that special circumstances can and do affect a family’s ability to pay. Therefore NDNU like all other universities sets aside a portion of its yearly operating budget to offer Gift Aid to a portion of its undergraduate population. In fact, last year more than 70% of all undergraduate students received some form of financial assistance in the form of Gift Aid (awards based on a variety of factors such as academic achievement, talent impairment, athletic ability, leadership, geographical location, field of study, or financial need). Unlike student loans, scholarships and fellowships are considered Gift Aid and do not have to be repaid. However for graduate students financial aid is only generally available in for the form of Self-Help Aid (i.e., requires repayment in the form of loans or service to an employer).

Facts: The gift-aid for undergraduates is self-funded through the top-line yearly tuition fees charged, $29,610 (up to 18 units/semester). Currently there is no gift-aid for graduate students; which is done to keep tuition costs down. Graduate students are charged $790/unit and take on average 12 units per year. There are approximately 900 undergraduate and 700 graduate students at NDNU. The only way NDNU can offer Gift-Aid to graduate students then would be to raise the tuition rate for all graduate students in order to create a pot of money to redistribute.

Situation:  The student representatives on NDNU’s Planning & Budget Committee (PBC) have been invited to weigh in and offer direction to this group. Realize that PBC recommendations go directly to the Board of Directors …and rest assured any recommendations are carefully considered. However before the student representatives on PBC can offer their guidance, they have invited your input in helping them decide upon a recommendation to be made to the larger PBC team. Now student concerns can be classified into one of two viewpoints:

1) Share the burden amongst graduate students in order to have funds available to offset educational cost for those who need or deserve it the most (i.e., raise tuition to create a pool of money for redistribution)

2) Gift-Aid is not a concept that should be endured/funded by graduate students (i.e., keep tuition to the minimum levels).

ViewPoint: Pro-Aid    

This position holds firmly that there should be a tuition fee increase to fund some amount of Gift-Aid which could be used for graduate students (i.e., ultimately helping to increase the diversity of our student population). However you must be cognizant that you could also be making a graduate education too expensive for some of your classmates to finish. You know that in order to offer Gift-Aid it will entail raising the per unit tuition fee for all graduate students. While you know that the cost of your graduate education is expensive; the total cost is still less than other institutions, and well less than the top amount of federally backed loans available to most students. You are privileged to the fact that approximately 40% of our graduate students receive some form of employer sponsored tuition reimbursement (ranging from a portion to all of it). Therefore these students will be less likely to directly feel the effects of any significant raise in tuition fees. Here the goal is simply for NDNU to offer as much Gift-Aid which is practical for as many graduate students spanning the different types of awards that can be made. Because of NDNU's values, types of awards that could be given: financial need, talent impairment, geographical location, field of study, student leadership, and academic achievement. Therefore in addition to making the argument that Gift-Aid should be established graduate students, you will have to also recommend: (a) how much should the graduate tuition rate will be; and (b) what should be the priority for awarding financial awards to students?

ViewPoint: Con-Aid:    

This position holds firmly to the belief that education is already costing enough and are opposed to any form of tuition fee increases just to fund Gift-Aid for graduate students (even though you would likely would be eligible for some of it). You are definitely not opposed to the belief Graduate students should be afforded the same financial aid opportunities as undergraduate students. In fact this is one of principles which attract many here in that the value system of NDNU is to be more inclusive than exclusive. Also while you know that the cost of an NDU graduate education is expensive; the total cost is still less than other institutions, and well it less than the top amount from federally backed loans available to most students. However the underlying issue is your opinion that the expense for education should be minimized for graduate students and any burden should not be passed on to those capable of paying for their degree (no matter how small the contribution). In other words, all students (regardless of need) should pay their fair share, even if it means that NDNU ceases to be less diverse and more discriminatory in favor of students with the means to pay, or that the monies should come from elsewhere. Therefore you will need to make the argument that passing along the cost of funding Gift-Aid to graduate student should: (a) not be considered whatsoever; or (b) that the funding source should be other than just raising the graduate tuition rate.

Obviously there is considerable middle ground between these two extreme viewpoints. Ultimately the student PBC members will decide what to take forward to the larger PBC team. Your task is to consider both viewpoints and select either one of them, or provide yet another alternative compromise that you feel would be even better.

Reference no: EM131778723

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