Imagine a supermarket where every customer pays a different price for food. Customers who are better cooks pay less than customers who are lousy ones, and customers who earn more pay more than customers who earn less. This sort of pricing scam has come into fashion at many schools under the "high tuition, high aid" model. As the University gains more autonomy over tuition increases, it should resist the move toward such a model.
The "high-tuition, high-aid" model means that tuition is increased disproportionately to the rising cost of education, while need- and merit-based scholarships are increased. Schools that operate with such a model justify it by claiming to increase social mobility and the quality of education, since the higher tuition is only paid by those who are perceived to be able to afford it, while aid covers the rest of students.
It is no coincidence that the University's hallmark AccessUVa financial aid program was announced at the same time as the University asked the state for more autonomy to raise tuition. According to a conference paper by Education Prof. Sarah Turner, "The combination of renegotiated institutional status under the 'Restructured Higher Education Act' and AccessUVa represents an unambiguous shift to a high tuition, high aid policy at the University of Virginia." Right now the University's is a light version of "high tuition, high aid" model -- it comes with no increases in merit based aid and small increases in need-based aid and tuition. But there is always the risk that the University could become even more reliant on this flawed model in the future.
Tuition increases make sense if they reflect an increase in the real price of a college education, but increasingly, they don't. Across higher education, market prices have been jettisoned in favor of an abstract fee calculated differently for each student based on what that student's family is willing to pay.
Such policies don't hurt students at the very bottom of the economic heap, but students in the middle have reason to fear. No one in an admissions office would feel sorry for a family making $100,000 a year, but these families might struggle to afford $45,000 per year of college fees -- the sticker price of many "high tuition, high aid" schools. The result is that students and families whom the college does not determine needy or merit worthy -- average students -- will be forced to take out loans.
AccessUVa alleges to guard against this, by replacing need-based federal loans with grants for families whose incomes are less than twice the poverty level, and capping the total amount of need-based loans any student will have to take at one year's price of attendance. But tuition increases are bound to create hardship for some families.
Some tuition increases are probably necessary to make up for shortfalls in state funding. But University officials should not allow programs like AccessUVa to help them feel comfortable raising tuition indefinitely on the vast majority of students. Even though the price of attending the University for in-state students will probably never approach the colossal sticker price of "high tuition, high aid" private schools, the University's seeming move toward that model will end up costing many students.