Editorial
By Chelsea Allison, Editor
The Chronicle
January 28, 2009

The University announced Monday that it has raised $308 million since 2005 to be put toward the creation of an endowment for student financial aid. Although the Financial Aid Initiative fell just short of its $230 million goal for undergraduate aid, it surpassed its ambitious goal of raising $300 million in all.

And with the great majority of these funds not simply pledged but already in hand, it is time to celebrate a major success both for the student body and for President Richard Brodhead.

In the current economic situation, any financial success comes as a relief. But the completion of the Financial Aid Initiative is of special significance, because a good financial aid program is at the heart of any top modern university.

The reason that expansive financial aid is essential to the health of the University is that it maintains the diversity of experience among the student body and serves as one of the most important factors in making the University attractive to many prospective students.

The Financial Aid Initiative has been the focal point of the University's general commitment to aid in recent years. Annual undergraduate financial aid has risen , and Dec. 8, 2007, the University eliminated parental contributions for families earning less than $60,000 a year and replaced all loans with grants for families earning less than $40,000 a year.

This financial aid endowment will strengthen this trend. An endowment will make financial aid less dependent on variable annual giving, which is spread across the rest of the University.

The credit for prioritizing all this goes primarily to Brodhead. The Financial Aid Initiative is the signature achievement of his tenure so far. And although this fact has often been obscured by other programs and the lacrosse scandal, Brodhead's efforts have now borne fruit and are receiving the attention they deserve.

Aside even from the initial decision to place an emphasis on financial aid, the particular timing and timing and strategy of the Initiative now look especially prescient.

When he came to the University, Brodhead could have focused on raising money toward, for instance, speeding the construction of New Campus, a project that might easily have stalled out during tough economic times.

Instead, he chose financial aid, which is always important but becomes even more essential in a recession, as demonstrated by the high percentage of early decision applicants this year who said they might apply for aid. Even if the program had fallen short of its goal, a smaller endowment is far better than a half-completed construction project.

At the same time, the national context of the Initiative should not be ignored. Top-tier universities have made concerted efforts in recent years to expand financial aid, competitors in what is often called the "alms race."

Most publicized has been the complete elimination of loans from aid packages at Harvard, Yale, Amherst and Princeton and others and the expansion of aid for middle- and lower-income families at most top universities. The University must keep pace with these developments if it hopes to keep attracting the best and the brightest.

But for now, as a reminder that the University is a first-rate institution, this news should be welcome. As a signal that even in a recession, a great education will still be accessible to as many as possible, the Financial Aid Initiative should be celebrated.

© Copyright 2009 The Chronicle