He said he had no problem with families asking for money back, even though the lost value is not the fault of any educational institution. But he also said that he had no earthly idea how to put a value on the loss.
It may depend on the institution, what it costs to educate an undergraduate and how much subsidy, if any, a student receives.
At public universities, the state government is generally subsidizing at least part of the cost for in-state students. Families might quite reasonably assert, however, that any “subsidy” comes from taxes that they’ve already paid.
At well-endowed private institutions, there is sometimes a different subsidy, even for those who pay the full sticker price: The cost to educate a student is higher than the cost of tuition, room and board.
Consider a school with an $80,000 retail cost to attend. If the total amount of money necessary to educate a student is $100,000, then philanthropy may be providing everyone at least $20,000 of value more than anyone is paying out of pocket. (That $20,000 would effectively pay for the last fifth of the school year, which happens to be about the same period that many students will have been in online classes.)
Perhaps you can find some solace in thinking about this period as one of having lost the opportunity to benefit from a subsidy, not one where you wasted tuition. And if that’s cold comfort or it doesn’t apply to your non-subsidized school, consider Professor Zimmerman’s second question: Who should pay your refund?
It’s tempting to suggest that schools — particularly well-funded ones — tap endowments. Brown had $4.2 billion as of the middle of last year, but it can’t just get at all of it. Many investments are not liquid. Others are restricted by law to whatever use the donor specified. At Brown, the endowment is actually made up of hundreds of such separate funds, according to a spokeswoman.
Article source: https://www.nytimes.com/2020/05/01/your-money/college-tuition-refunds-coronavirus.html
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