Encourages college and university boards of trustees to plan for a recession despite the current flourishing economy and positive campus finances. Analyzes effects of recessions on tuition and discusses the need for each state to address its long-term structural deficits. Urges the creation of reserves and moderation of spending growth. (DB)

According to a recent study of 150 leading private colleges and universities, raising tuition/fees faster than the growth of family income is self-defeating. It forces institutions to divert some new revenue into financial aid, narrows the applicant pool, and undermines the social contract supporting need-based aid. (MSE)