Ever wonder where tuition money goes? Does it go into FME startup companies? How exactly are tuition expenses split up?
Babson College’s tuition is approximately $46,784. Add Room & Board and the Meal Plan to that and you get a whopping $64,612 in estimated expenses. As it turns out, an average undergrad pays approximately 68% of that total cost of attendance. So where does that other 32% come from?
Luckily, Babson’s operating activities are rich in contributions from alumni. This allows Babson to administer many of the educational programs and auxiliary activities effectively—one of those programs being FME.
Every year, Babson accords $100,000 to the FME program, in which students have the opportunity to write an inspired business plan and reclaim all of that money. “We essentially treat [FME allocations] as a loan, and when the business is made, [partial profit goes to Babson and the rest goes to charity],” Senior Associate VP of Accounting and Finance Richard Bowman said. The $100,000 does not get fully reimbursed into Biz E. Beaver’s wallet; that is when alumni contributions come into play.
Taking into account all of these expenses, most of which are part of the Undergraduate program, one might notice that Babson as an institution distributes this money to benefit students. Expenses range from Instructional Divisions to Student Services to Institutional Support, and, most importantly, to Academic Support.
One significant investment Babson has made for its students is the upgrading of campus residence halls, illustrated by the major construction in Park Manor Central. These all contribute to beautifying and differentiating Babson campus life and academic life from other schools.
When walking around the campus, one should aware of their surroundings. They may notice that a lot of what is coming out of students’ pockets is being put to good use.