Goucher and the Current Economic Climate

October 29, 2008

Dear Goucher students and family members,

The country’s current economic situation is at best uncertain, and at worst unstable.  In fact, the only thing that seems certain right now is that this financial crisis will affect all of us in one way or another for the next few years.  Last weekend, Goucher’s Board of Trustees had its annual fall meeting, and the majority of its time was spent talking about the impact the crisis could have on the college, and how we can protect Goucher’s financial security and soften the impact on our students, families, faculty, and staff.

I’m sure that you have moments when you wonder if you can continue to afford an education at Goucher.  Please know that we will try to do everything we can to make sure that’s not a decision you have to make. 

Our commitment to providing need-based assistance has not changed.  Some of you may be eligible to take advantage of certain resources if you are facing a particular struggle or setback.  For example, if you did not apply for need-based financial aid for the 2008-2009 academic year, you may still apply for the Spring 2009 semester by completing the following:

• The Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov 
  (use Goucher’s code 002073).
  
  
• The College Scholarship Service PROFILE www.goucher.edu/scholarship
  (use Goucher’s code 5357).  Deadline is December 9, 2008.

Please visit the Financial Aid section of our website at www.goucher.edu/financialaid, to learn about other opportunities for assistance, such as the federal PLUS loan and the Tuition Pay monthly payment plan.  In addition, we anticipate that a limited number of on-campus, part-time jobs may become available for the spring semester.  Our Career Development Office, located on the first floor of the Dorsey Center, can give you more information about them.  If you have growing concerns about your financial situation, don’t hesitate to contact Sharon Hassan, our director of financial aid, at sharon.hassan@goucher.edu or Michael O’Leary, vice president for enrollment management, at michael.oleary@goucher.edu.  They are available to help you continue to afford a Goucher education.

The good news is that Goucher entered this period of national turmoil on solid financial ground.  Our funding priorities for this academic year are already set and will not be affected, and monies have been secured to complete capital projects already underway, such as construction of the Athenaeum and improvements to several athletic spaces.  We also dodged a bullet with what is known as The Commonfund Short Term Fund, which had been used by hundreds of tax-exempt institutions for their cash balances.  Like many other colleges, Goucher had significant reserves in the fund, but, thanks to the foresight of our vice president for finance, we were able to remove all of our money before the fund’s manager, Wachovia Bank, announced it would restrict withdrawals.  Other colleges weren’t so fortunate.

Goucher relies on four primary sources of funding: student tuition and fees, endowment income, gifts and donations, and a Maryland program of state aid to private higher education.  Our endowment today is valued at approximately $150 million, compared to $211 million just seven months ago.  It is a healthy portfolio, but obviously not immune to what has been happening in the market.  In addition, faced with its own budget crisis, Maryland Governor Martin O’Malley has cut funds to the state’s private colleges by 10 percent.

The bottom line is that, regardless of our current financial health, we don’t know what impact all of this will have on future-year budgets.  That is why I am working closely with our Board of Trustees and my senior staff to determine ways in which we can control and decrease spending.  We are committed to managing this crisis in responsible ways that minimize any impact on tuition costs.

Goucher remains strong, and I refuse to let these financial concerns get in the way of what we do best: educating young minds to go out and change the world.  Goucher is a unique place for men and women to receive a stellar liberal arts education with an international component, and that will not change.  I am grateful for the dedication and commitment our students and their families have shown to Goucher.  By working together, I am confident we can weather this financial storm.  I will continue to keep you informed about the financial state of the college.

Sincerely,

Sanford J. Ungar