Sharing the Costs of Postsecondary Education in Vermont: A Case Study of a 'High Tuition, High Aid' State Strategy. ASHE Annual Meeting Paper.

This study examines the philosophy, strategic principles, and public funding mechanisms that form the "Vermont model" of postsecondary education finance and involve a "high tuition, high aid" finance strategy as an alternative to the predominant practice of heavily subsidized student-related postsecondary costs through taxpayer support of public colleges and universities. A pragmatic cost-containment strategy has guided state appropriations, tuition-pricing, and state assistance practices. From Fiscal Year 1985 to Fiscal Year 1993, Vermont state subsidies provided reasonable access and choice with public subsidies equitably distributed to lower-income grant recipients. However, trend analysis of enrollment and student assistance data suggest that between Fiscal Year 1989 and Fiscal Year 1993 educational opportunities may have declined for lower income Vermont residents and during this period responsibilities for financial postsecondary education shifted from federal and state taxpayers to families and institutions. The cost-containment and portability features of Vermont's strategy have contributed to the state's publicly-assisted institutions becoming more dependent upon out-of-state revenues and may have encouraged out-migration enrollment for Vermont Student Assistance Corporation recipients. As the burden shifts from taxpayers to families, access, choice, and affordability are declining for Vermont lower income grant recipients. A flexible framework is needed to address the new socioeconomic realities and challenges facing Vermont. Tables show distribution of aid and grants. (Contains 14 references.) (JLS)