Hillsdale has a "list" price for one year of undergraduate education. The following are these prices for the current term. Some 95% of students are charged less than this though through one of two programs: Merit based or Need based scholarships. Scholars in the current proposal would benefit from these programs to the extent they qualify. Any shortfall from the "list" prices would be paid by this scholarship fund.
Table 1. Billed Costs
|Room (Residence Hall, double occupancy)||$6,020|
|Board(19 Meal Plan)||$6,120|
|TOTAL BILLED COSTS||$42,182|
Table 2. Non-Billed Budgetary Costs
|TOTAL BUDGETARY COSTS||$45,382|
Table 3. Sources of Funds
|Student contribution via 10/hr/work/week||$6,000|
|Merit based scholarship||$14,477|
|Need based scholarship||$?|
|Estimated Shortfall covered by scholarship||$24,905|
|TOTAL FUNDS TO BE RAISED / TERM||$45,382|
I do not quite understand the motivation nor the rationale for this system. And I'm not sure that I got it right as to how it functions. But until proven otherwise, I'm going to presume that this explanation is correct. Given this, it's not possible to know how much contribution will be required from this scholarship fund for any year or number of years. Given that they will be drawn from a large pool of candidates, scholars are likely to qualify for merit scholarships. I'm going to assume that our scholars will receive the average amount of merit aid per term of $14,477. Thus yielding an estimate required contribution of $24,905 for the first year of study. This is totally speculative of course, but we have to start somewhere.
It has been my thought that funds required for the whole 4 years would be contributed when the student is accepted so that Hillsdale is absolutely guaranteed that the funds would be available when required. I don't know what the actual policy on this is. But I'll assume that it's true for this discussion. Assuming that the interest on monies deposited at this term were 5%, the value of the initial required contribution would be calculated according to the following table:
Table 4. Accumulated Cost of Funding a Four Year Degree
|Year||Corresponding Contribution||Accumulated Contribution|
That is for one student - $88.645 for the whole four years.
I would like to see 2 new students / year ($177,390) added in subsequent years for a total of 4 years. This would provide scholarships for a total of 8 students. Accounting for interest rate on savings similarly to the above would result in a total initial outlay of $660,464. This is easily within my ability to provide.
The above amount is derived from assumptions and guesses of factors beyond my control and may have to be re-calculated with different assumptions. Feel free to do this or request that I do it.
This is merely and estimate and depends on lots of other things. Among these are:
interest rates and return on interim investments .
rates of inflation. Hopefully evolution in interest rates and rate of inflation will tend to cancel each other out so that although any actual numbers noted here may change, the conclusions derived from them will still be mostly valid.
contributions from other merit and/or need based scholarships
contributions from relatives
other possible expenses - e.g. Transportation to/from Ecuador.
The above numbers are shown to a precision which cannot be correct and would be better rounded. I've left the numbers un rounded to facilitate the double checking of the calculations.