College Raises Annual Fee

Also Announces Expanded Program of Financial Aid

IN THE FACE OF sharply rising costs of operation on the one hand and a diminishing rate of return from investments on the other, President Dickey announced last month that the Board of Trustees of the College had voted to increase Dartmouth's annual combined fee for instruction, general facilities and the health service from $450 to $550, effective next fall with the start of the academic year 1946-47. At the same time he announced that the Trustees had voted to increase and extend Dartmouth's financial aid program in order "to assure that it shall not become more difficult for qualified men of restricted financial means to attend Dartmouth College."

The upward spiral of basic expenses in recent years has added half a million dollars to Dartmouth's annual budget since 1940—primarily in such categories as instruction, library service and health service —and it is estimated that College costs in 1946-47 will total 12,500,000. Important in the financial picture is the recent Trustee decision to make permanent the faculty salary increases adopted for the wartime accelerated schedule and to give still further consideration to the faculty salary scale.

The new annual combined fee of $550 represents a 22% increase over the $450 fee which has been in effect since 1937, but during the same period, assuming a $2,-500,000 budget next year, the College's annual expenses have increased nearly 32%. Even with the $550 fee, students next year will be bearing only an estimated 47% of the annual costs of the College as compared with an average of 49% over the past twenty years.

In the detailed statement which President Dickey made to undergraduates and their parents at the time of announcing the new combined fee, he gave great emphasis to the determination of the Dartmouth Trustees to maintain a student body broadly representative of the nation, both economically and geographically. "Whatever the course of College costs, which are mainly a reflection of conditions beyond the campus," he wrote, "Dartmouth is determined to lose none of its traditional democratic qualities as a cross-section of American life. From the earliest days of the College the students from the lower end of the economic scale have contributed far more than their share to Dartmouth life and the fulfillment of the College's purpose. We want more, not fewer, of them in the future."

Veterans at Dartmouth next year under the G. I. Bill will be covered on the basis of the new $550 fee, plus $50 for books and supplies, even though the Bill allows a maximum of $500 a year for these items; but to make up for this additional coverage the veteran's period of entitlement will be proportionately shortened, it has been ruled by the Veterans Administration. It is expected that at least 80% of the student body will be veterans studying under the G. I. Bill, and in the great majority of cases the periods of entitlement will be such as to allow the veterans to complete the Dartmouth course without personal expenditure for the annual combined fee.

Since it does not become effective until next fall, the increased fee will have no bearing upon the fiscal year 1945-46, now drawing to its close; and to offset the current deficit, estimated up to $350,000, the College is relying upon the Alumni Fund, which has borne an increasingly heavy load in College financing in recent years. With increased income from students still not matching the larger costs of maintaining the quality of a Dartmouth education, the Fund's role will continue to be of the utmost importance to the College. Following, in full, is President Dickey's formal announcement of the Trustees' action on the new combined fee:

THE TRUSTEES OF DARTMOUTH COLLEGE have voted:

That beginning with the fall term of 1946 the annual combined fee for instruction, general facilities, and the health service shall be $550 and that wherever necessary, financial aid shall be increased or extended to assure that it shall not become more difficult for qualified men of restricted financial means to attend Dartmouth College.

The first action, fixing the annual combined fee for instruction, general facilities and the health service at $550 is necessary because college operating costs are up sharply and going higher.

The second action, increasing the scope of financial aid to students, has been taken because the College, in spite of increased costs, intends to keep a Dartmouth education within the means of ambitious men with limited financial resources.

I. The general increase in costs throughout the country is common knowledge and requires little elaboration. It is important, however, that there should be clear understanding concerning (1) the position of the College and (2) the portion of college costs borne by the individuals affected by this action:

(1) The new annual combined fee of $550represents a 22% increase over the $450 fee which has been in effect since 1937. During the same period, with a prospective budget in 1946-47 of around $2,500,000, the annualexpenses of the College have increasednearly 32%.

(2) Over the last twenty years before the war Dartmouth students bore 49% of the expenses of the College. Assuming a normal enrollment, even with a higher combined fee of $550, student fee payments will cover only about 47% of the expenses of the College as against the average of 49% borne by this past generation of Dartmouth men. Board and room expenses vary with individual arrangements and are not included in figures of College costs and student fees.

Dartmouth as a private institution with a limited and relatively fixed income from endowment funds which must pay its way as it goes—or not go—has just three approaches to solvency in a period of rising costs:

(a) Ask those who are getting the service, and who can, to bear at least a portion of the heavier cost. This the Trustees are now doing.

(b) Seek gifts. The Alumni Fund continues to bring this assistance to the College in ever more generous measure. Singlehandedly it bridges the widening gap between College income and expense.

(c) Cut the quality of a Dartmouth education or take it out of the livelihood of those who live by teaching. The Trustees are unwilling to do either of these. The prospective budget of around $2,500,000 for 1946-47 reflects, in addition to other items of increase, the recent decision to make permanent the temporary wartime faculty salary increases and the fact that further increase of the faculty salary scale is now under study for action by the Board of Trustees.

Beyond understanding the essentials of the financial position of the portion of College costs borne by the students there is the compelling consideration of keeping a Dartmouth education, in spite of increased costs, within reach of the man of restricted means.

II. This College places great store on having a student body broadly representative of the nation. Whatever the course of College costs, which are mainlv a reflection of conditions beyond the campus, Dartmouth is determined to lose none of its traditional democratic qualities as a cross-section o£ American life. From the earliest days of the College the students from the lower end of the economic scale have contributed far more than their share to Dartmouth life and the fulfillment of the College's purpose. We want more, not fewer, of them in the future.

This settled policy is safeguarded and advanced by the action of the Trustees in adopting a student aid policy "to assure that it shall not become more difficult for men of restricted financial means to attend Dartmouth College." Over the past twenty years the total amount of scholarship aid provided by the College has increased 95%. In addition loan programs and other forms of student aid have been greatly extended. For some years at least 80% of the student body will be veterans whose combined fee payments in whole or in the main, along with certain other expenses, will be borne by the Government as educational benefits under the G.I. Bill of Rights.

In the years ahead increased and broadened financial aid in one form or another will be available on the basis of need, both to men now in college and to incoming students.

There are two particular points to be noted in this connection:

(1) As indicated under I (2) above, every Dartmouth student is receiving free assistance from the College and the gifts of others for better than 50% of the Cost of his education to the College. Accordingly, no qualified man who wants to attend Dartmouth and who really requires some measure of assistance additional to that received by every student need have the "slightest hesitation in seeking such additional assistance either in scholarship or some other form of financial aid by the College.

(2) Society in its own best interest, in its private educational institutions as elsewhere, cannot for long continue to subsidize those who can afford tp pay their way at the expense of excluding the qualified man who requires some assistance to get the education he needs to make his full contribution as a useful citizen.

These are the essential facts and principles which have determined and will guide the financial policies of Dartmouth College as a private liberal arts college which continues to recognize its primary obligation as being to human society.

President