BY | ERIN PETERSON       ILLUSTRATION BY | JAMES KACZMAN

Dakota Ryan ’09 says that cost wasn’t the first factor he considered when he applied to nearly a dozen colleges his senior year of high school—but it was the second. “I was more interested in the quality of the education, rather than how much I’d end up paying for it,” he says. “But cost became a primary concern in the later stages of my search.”

Ryan, an English and economics double major who grew up in Wellesley, Massachusetts, as the only child of a widowed mother, says securing financial aid for his college education was critical, since there was no way he and his mom could foot the entire bill. “I applied for a ton of scholarships and got a few, but the rest had to be made up with financial aid and whatever my family could contribute,” he says. Ryan had narrowed his search to Reed and Macalester, and Macalester’s financial aid tipped the balance. He expects to graduate after four years with about $20,000 in loans—not pocket change, to be sure, but well below the four-year sticker price of Macalester’s tuition, room, and board, which is $41,914 for 2007-08.

If you just did a double take at that figure, you’re not alone. Macalester President Brian Rosenberg acknowledges that the cost of a college education isn’t just a tough topic for the students and parents shouldering the costs. “Keeping Macalester affordable is probably the largest challenge we face,” he says. “It’s a complex and difficult balancing act necessitating many compromises.”

It’s a balancing act that the college has negotiated well, according to at least one source: U.S. News & World Report recently ranked Macalester among the 25 liberal arts colleges with the lightest debt load for graduating students. Other schools on the list include Williams, Wellesley, Pomona, Amherst, Middlebury, and Swarthmore.

College costs across the nation have spiked, and Macalester’s are no exception. A closer look reveals reasons behind the escalating prices, and more importantly, what Macalester is doing to make sure that every student who is accepted for admission can afford to attend.

Increasing Costs If there’s a single word that best explains the reason behind the rising costs, it’s this: people. Macalester’s remarkable 10:1 student-faculty ratio means professors can spend time with students during office hours, write personal letters of recommendation for jobs and graduate school applications, and hire them for summer research projects and internships. It means that students can develop close working relationships and friendships with professors, a hallmark of a Macalester education. And people—more so than anything else that colleges spend money on—are expensive.

The cost of hiring a new faculty member includes not only a salary, but retirement benefits and health insurance. Macalester also is committed to hiring faculty who are both top researchers and exceptional teachers. For Rosenberg, hiring the best people for the college is worth every penny. “This is the source of the college’s strength, and what makes the experience so valuable for students,” he says.

Faculty expenses aren’t the only explanation behind the increased costs, however. The college maintains some four dozen buildings on its 53 acres, including the new athletic and recreation center slated to open later this year. The college has cutting-edge equipment and technology for students to use for classes and research, a benefit that gives grads an edge as they apply for graduate programs and jobs. Macalester has also recently committed substantial additional funding to its study-abroad program. While such costs are necessary to maintain and improve Macalester’s educational experience, critics have pointed out for years that the cost of a college education in general has increased at a faster pace than inflation as a whole. (Macalester’s increase between the last academic year and the current one was 7.4 percent—almost twice the inflation rate of 3.8 percent.)

While the statistic is true, says David Wheaton, vice president for administration and finance, it’s not exactly fair. “The inflation rate that the U.S. government publishes has to do with the cost of buying a group of items that people typically purchase—food, housing, and so forth,” he says. “But if you think in terms of what a college student is buying as part of a college education, those things aren’t the same. You’re buying people’s time and expertise. You’re buying the costs of building maintenance. The basket of goods is quite different.” Studies have shown that the cost of the things college students are buying as part of their tuition consistently outpaces inflation. That said, Macalester takes its fiscal responsibility seriously. The college refuses to cut corners for anything directly affecting students, but Wheaton notes that the institution has taken other steps to rein in spending. For example, he says, Macalester has a smaller administrative staff than is typical for a college its size. “We do our best to manage our costs tightly,” says Wheaton. “We want to make sure we use funds to do things that are directly related to the student experience.” Macalester has proved frugal in comparison to its peers: its tuition is less than 35 of the 40 top liberal arts colleges ranked by U.S. News & World Report.

The payoff for an investment like a Macalester education is significant in both financial and emotional terms. One study pegged the value of a bachelor’s degree at $1 million in extra earning power over a lifetime. And 95 percent of 2006 graduates reported being satisfied with their Macalester experience. “Between the ages of 18 and 22, people have a huge opportunity to learn and grow and explore,” says Wheaton. “Small, private liberal arts colleges like Macalester offer a high quality intensity that’s costly but has really significant benefits.”

Ryan agrees. “When I consider the money I could be saving by enrolling in a larger public institution, Mac doesn’t always seem like a rational choice,” he acknowledges. “But it’s easy to get lost in the crowd at a larger school. No one might notice if you skip a week or two of classes, and the focus is often the content of the day’s lecture instead of on building the foundation for a lively conversation. And the people I have met here—friendly, smart, and passionately interested in everything—are worth every penny.”

Helping Meet the Need Prospective students and their parents may find it tough to wrap their minds around the costs that any college requires, but Macalester has a key tool to help make the burden more manageable: some $27 million (in 2007-08) in financial aid. Outside of personnel costs, it’s the largest line item in Macalester’s budget.

Financial Aid Director Brian Lindeman, who works with five other staff members in the Financial Aid Office to divide those funds fairly, says the trustees have long been willing to support that substantial financial commitment. “Part of the reason for the large [financial aid] budget is to make sure that we can provide aid that allows all types of students to come here.” About two-thirds of the school’s students receive financial aid, which Lindeman says is slightly higher than the average top liberal arts colleges.

That financial aid was one of the primary reasons that Hillary Mohaupt ’08 of Rockford, Illinois, decided to enroll. When she was looking at colleges, she wanted to find a school that would support her interest in international travel and learning. Macalester fit the bill, but she knew it would be tough for her parents to contribute much to her college education. Her mother, a nurse, and her father, a substitute teacher and consultant, had to consider the college costs of Hillary’s twin sister, Abby, and her younger sister, Susannah.

For Mohaupt, now a history major with minors in French/francophone studies and American studies, Macalester’s grant-heavy financial aid package was enough to seal the deal. She also appreciated that Macalester covers the majority of costs that students incur for study-abroad trips. (Last spring she studied for a semester in Toulouse, France.) In addition to her grants and loans, she works about 10 hours a week on campus—enough to help cover the $1,500 she spends each year on books and incidentals. Her earnings from working three different jobs last summer fund her rent, food, clothing, and a small savings account she plans to use for future travels. She expects to graduate with about $15,000 in loans.

The average financial aid package for first-year U. S. students comes in at about $24,000 per year, about 60 percent of the comprehensive cost. According to Lindeman, about 85 percent is grant aid, while another 15 percent is split between loans and work. Currently, most of Macalester’s financial aid is need-based (based on a family’s finances), rather than merit-based (based on a student’s talents and achievements). The move is part practical and part philosophical. By focusing on need-based aid, Macalester provides a more level playing field for students of all economic backgrounds. And because Macalester students are all top-notch, it’s tough to single out particular students as being more worthy than others. Any student talented enough to get into Macalester in the first place, administrators believe, should be given the same opportunity as everyone else to attend.

Students are also taking matters into their own hands, finding clever ways to cut costs and earn a bit more cash. Ryan, who spent the summer working at an on-campus job and an unpaid internship, pays just $350 for his portion of an apartment he shares with friends—far less than the going rate. Mohaupt takes advantage of free concerts put on by nearby museums and discount bus passes offered by Macalester. She’s also added a few hours of work each week at a local dog boarding facility, in addition to her campus job. “I keep busy,” she admits. “But all my friends are the same way.”

Although almost any student who wants one can get an on-campus job (about 75 percent of students work), they’re limited to no more than 10 hours a week. “We don’t want student employment to have a negative impact on academic and other pursuits,” explains Lindeman.

Juggling jobs, an academic schedule, and extracurricular activities has never been easy, but Mohaupt believes the rewards are significant and Macalester has helped ease her financial burden. “My parents both had college educations, and they recognize the importance of higher education,” she says. “We knew that there would be sacrifices, but we also know that in the long run, it’s worth it.”

ERIN PETERSON is a Minneapolis writer who writes regularly for Macalester Today.