University Business December 2006 - (Page 13)

U B E H I N D the NEWS Parents Need a Domestic Benefits Ping Pong Reality Check IHEs claim benefits packages keep them competitive; some disapprove. FOR UNPREPARED PARENTS, A COLLEGE'S W H E N TRUSTEES FOR THE UNIVERSITY OF sticker shock can be pretty brutal. But Louisville Ky. voted in July to make it the state's first pub- when it comes to paying for college, the lic university to extend health-insurance benefits to unmar- good news is that you have 18 years to ried domestic partners, including gays and lesbians, they plan, there are tax-advantaged solutions, no doubt believed they were doing a noble thing. After all, and you don't have to go it alone, says at least 300 higher education institutions currently offer Jennifer DeLong, director of College Savings health benefits for domestic partners. At the time Louisville Plans at AllianceBernstein Investments. President James Ramsey praised the trustees on their action. Unfortunately, she says, most parents are That probably wasn't an easy vote for some trustees, he Gilgor: Ky. fighter. about as prepared to meet college costs as said, noting that extending benefits was the right thing to do. freshmen are to do their own laundry. The University of Kentucky has also supported the idea of A study conducted by Mathew Green- domestic partner benefits and expects to decide on a course of action early next year. In wald & Associates, Inc. for AllianceBern- both cases the proposals were largely seen in a practical light, allowing the schools to offer stein found a huge disconnect between competitive benefits packages that could help recruit and keep the best employees. the real cost of college and how much Not everyone, however, sees it that way. State Rep. Stan Lee R-District 45 intro- parents think it costs. duced a bill last month to stop the move. Lee's bill would prohibit any post-secondary O n average, surveyed parents with institution from providing benefits to unmarried couples whether they are of the same children ages 14-to-17 say they plan sex or the opposite sex. to have $12,000 saved when their child By his reasoning, Kentucky voters rejected the idea of domestic partner benefits when reaches college age. Considering that the they passed a constitutional amendment to ban gay marriage. projected cost of a 17-year-old's college A similar fight is under way at Michigan State University, where opponents say the education can be in the tens of thousands school violates a state constitutional amendment by offering benefits. The 2004 amend- for a public IHE and even higher for a pri- ment defined marriage or any similar union for any purpose as the union of a man and vate IHE, that $12,000 won't go very far. a woman, but at least seven other Michigan institutions currently provide benefits to Part of the confusion stems from par- same-sex couples. ents' expectations that colleges will help And in Wisconsin, where the University of Wisconsin System has been seeking do- cover costs by offering scholarships, mestic partner benefits, voters approved a constitutional amendment last month that not grants, and financial aid. Eighty-seven only defines marriage as a union between a man and a woman, but also bars the state percent of parents are counting on their from granting legal status similar to marriage to unmarried individuals. Despite that, children to receive scholarship or grant the UW System Board of Regents will likely ask lawmakers to provide domestic partner money and more than two-thirds believe benefits for its workers. UW-Madison is the only Big 10 university that currently does colleges will offer reasonably affordable not offer the benefits. financial aid. But the reality is that schol- In all three cases, although the legality of the benefits programs has been challenged, arship and grant dollars are less available few expect the schools to discontinue the packages, especially since similar benefits are now than in the past. becoming more common in the corporate world. Christine Gilgor, executive director of the Sixty-seven percent also believe their Kentucky Fairness Alliance, believes the anti-benefits groups don't have the support to carry children will graduate with debt and 63 through on their challenge. Tim Goral percent view debt as a part of life. De- spite good intentions, many are clueless about the real cost of college. Instead of SOUND BITE `I ` saving appropriately, the study found they wonder what role Harry Potter may have played in this. tend to spend unwisely, depend on debt, and have unrealistic expectations of the John Bruss, of Sewanee University Tenn. , on the rise in Greek and Latin language studies. financial aid process. Alana Klein universitybusiness.com December 2006 | 13 Update.indd 13 11/20/06 11:21:54 AM http://universitybusiness.com

Table of Contents for the Digital Edition of University Business December 2006

Table of Contents
College Index
Company Index
Advisory Board
Editor's Note
Behind the News
Viewpoint
Future Shock
Admissions
Financial Aid
On the Hill
EDUCAUSE 2006 Highlights
Technology Spending Survey '07
101 Smart Revenue Generators (and Money-Saving Ideas)
Parking: A Lot To Look At
Engaging Alumni Online
One River, Not Two Streams
Internet Technology
What's New
Calendar of Events
Direct Connect
End Note

University Business December 2006