While most American colleges and universities have become increasingly dependent on subsidies from the federal and state governments, Hillsdale College has decided to decline all direct and indirect funding from the state of Michigan, making it one of only a handful of higher education institutions in the nation to refuse all government money.

Hillsdale College has never taken federal taxpayer money since it was founded in 1844. Now, beginning with the 2007-08 academic year, the school will no longer accept state of Michigan taxpayer monies earmarked for student financial aid. Last year, Hillsdale students received $670,000 in state tuition aid and scholarships. This student money will be replaced by funds that the College will raise from private sources.

“Hillsdale College has proven that a higher education institution can not only operate, but also thrive, free of federal taxpayer subsidy and of the strings that come with that support,” said Hillsdale College President Larry P. Arnn. “We view this new step to be in line with the mission of the College and with the interests of Michigan taxpayers, who are being asked by Lansing for increased taxes.”

Arnn added, “The Michigan Department of Education has been very professional in its dealings with us, and we thank them. This action has been taken with the goal of continuing the College’s historic independence from government regulation of our curriculum and operations.”

Determined to keep its tuition affordable, Hillsdale College increased tuition 4.2 percent for the 2007-08 academic year, which is approximately half the amount of tuition hikes recently imposed by public state universities in Michigan. Tuition at Hillsdale College is the second lowest among private liberal arts colleges in Michigan.

“While billions of dollars from federal taxpayers flow annually to institutions of higher education, Hillsdale College faces the challenge of competing without government subsidies,” said Arnn. “We have long survived by attracting private capital and good students to our campus, and we will continue doing so.”

According to Arnn, since the Sept. 11 attacks, federal higher education spending has increased about three times faster than defense spending.

“Maybe it is time to reverse that trend,” said Dr. Arnn. “Maybe it is time to fund colleges through tax credits or simple charitable deductions. It is certainly time for serious reform in higher education.”

Contact:

Mr. Chris Bachelder
Associate Vice President
Phone: (517) 607-2307
Email: cbachelder@hillsdale.edu

or

Donna Halinski
MRG
Phone: (517) 372-4400
Email: donnah@mrgmi.com