Differential could harm FAMU’s recruitment budget

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It was no coincidence that FAMU enrolled some of its largest National Achievement Scholar classes after the Florida Bright Futures Scholarship program was established in 1997.

Former President Frederick S. Humphries strategically took advantage of Bright Futures to relieve strain on the recruitment budget. NAS finalists and semi-finalists from Florida automatically qualify for the Academic Scholarship, which paid 100 percent of tuition and fees.

When FAMU attracted these students, it didn’t have to pay a dime for their tuition and fees because the state picked up the tab. That meant that FAMU only had to cover the relatively inexpensive costs of room and board.

During Bright Futures’ first year in 1997-1998, FAMU ranked number one in NAS recruitment. It also held the top spot in 2000 (with Harvard University tied).

However, the state legislature’s differential tuition law could make it much more expensive for FAMU to compete for NAS students.

The differential permits every public university to hike tuition by an up to 15 percent differential that goes beyond the rates set by the legislature in the annual appropriations bill. The differential will not be covered by Bright Futures.

FAMU has an important decision to make.

Option 1: Require NAS students to pay the differential out-of-pocket.

This is probably the worst option. FAMU’s in-state competitors, particularly UF and FSU, are likely to continue providing full-ride scholarships for NAS students. NAS students help them maintain a high black graduation rate (even while their overall black freshman numbers are declining).

If UF and FSU let NAS students enroll for free while FAMU asks them to come up with hundreds of dollars out-of-pocket, FAMU will be much less competitive.

Option 2: Cover the differential through the recruitment budget.

This option would place an enormous strain on the recruitment budget. FAMU does not receive as much recruitment money from the legislature as UF and FSU. With the recession, corporate donations are also drying up. Wall Street’s financial crisis also negatively affects the interest on the FAMU Foundation accounts that go toward scholarships. Tuition increases are not a reliable source of revenue either because most FAMU students will probably decrease their course loads.

Tacking the differential onto scholarship costs could result in a smaller overall FAMU recruitment budget. That would mean fewer top scholars.

Option 3: Waive the differential for NAS students.

If FAMU waives the differential, then the state legislature will still pay 100 percent of the tuition and fee costs for in-state NAS students at 2008-2009 rates. FAMU will continue to get NAS students at a bargain price.

FAMU’s administration and trustees have a responsibility to think carefully before implementing a differential that could hurt the university’s recruitment program.

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4Comments

  1. The third option is likely the best option. I thought that it was currently on the table as an option.

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  2. The FAMU administration hasn't said much about this issue at all. But I agree. Let the state pay for 100% of our NAS tuition scholarships.

    FAMU's growing success in re-building its NAS numbers will attract more corporate donors in the long run.

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  3. Observations:
    1. Even with the differential FAMU still has one of the lowest tuition rates in the state.
    2. If FAMU chooses to institute the differential it has to be approved by the BOG- and even the percentage of the increase- and FAMU may not raise to the 15-percent marker.
    3. The statement on National Achievement Scholars: this has been perpetuated for so long people seriously think its fact. Here's the correction: During 1997-98 FAMU led the nation in the recruitment of BLACK NA scholars. But wasn't number one. The same goes for 2000.

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  4. The fact that FAMU was #1 in National Achievement Scholars in 1997 and 2000 was reported by the National Merit Scholarship Corporation in its annual reports.

    In 1997, FAMU had 59 and Harvard had 57.

    FAMU and Harvard both had 62 in 2000.

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