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University of San Diego will try to slow tuition hikes by cutting operating costs

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The University of San Diego will try to cut operating expenses by at least $15 million over the next five years, largely to avoid the need for big hikes in tuition, an issue that’s causing problems at private liberal arts schools across the country.

The 69-year-old Catholic institution has raised tuition by almost $15,000 over the past decade, pushing the figure to $48,750, roughly the cost of a new Mercedes-Benz SLC class automobile.

The tuition hikes haven’t stymied growth; enrollment hit a record 9,075 this fall. The school has nearly reached capacity at its campus in Alcala Park.

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But students and parents nationwide are expressing anger about the seemingly endless tuition increases that have been imposed by colleges and universities.

Administrators say the hikes are needed to cover such things as raises for faculty and staff, and rising cost of health care.

But USD concedes there is a problem.

“We are trying to take pressure off students,” said USD Vice President Andy Allen. “I don’t want our tuition to keep going up and up and up. It doesn’t make any sense.”

The non-profit university is going to review its operating expenses in hopes of cutting millions of dollars campuswide. Some of the savings will be turned into scholarships, helping students to pay for tuition. It’s an age-old form of discounting used to make college more affordable, and enable schools to compete for the best students. USD also needs money to recruit and retain faculty.

“There may be a few private colleges and universities — think Stanford — that don’t need to worry too much about pricing issues,” said Scott Jaschik, editor of Inside Higher Ed, an online news organization.

“But for most, even if they are attracting healthy applicant pools, there is a very real worry. Many of these colleges are generous with very low-income students, but are having a tough time with the middle class. So it certainly makes sense to look at the economic model, which many are.”

USD is dealing with success and challenges across the board.

Earlier this year, the campus completed a capital campaign that raised a record $317 million. The money is helping the university improve academic programs, from engineering and nursing to business and peace studies.

But USD still needs to raise tens of millions of dollars, mostly to help fund major new structures, including the construction of a $67 million complex for the business school, and to renovate older landmark buildings, like Founders and Camino halls. Copley Library also needs to be modernized.

The university also is examining the status of academic programs, including the School of Law, where enrollment has been declining, as it is nationally. The drop partly reflects the country’s strong economy; many people choose jobs over college when work is plentiful.

But labor experts say that the rise of automation in the legal world also is discouraging people from going to law school.

Then there is the issue of USD’s size.

College enrollment is declining across the country, particularly at liberal arts schools. But USD managed to add 1,438 students over the past decade, eclipsing the 9,000 mark.

That wouldn’t be an issue at a place like UC San Diego, which sits on a massive piece of land in La Jolla. But USD is shoe-horned into a 180-acre parcel, and it’s mostly built out.

The university wants to be able to flesh out its graduate programs while preserving the school’s relative intimacy, and its physical appeal. Last year, the Princeton Review ranked USD the most beautiful campus in the U.S.

“We’re not going to build lecture halls to hold 700 students,” Allen said. “That’s just not who we are, or who we want to be.

“We want our students and faculty to know each other on a first name basis. That’s part of what you expect to get when you come to USD.”

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