ALLENDALE — When Shanti Collins graduates from Grand Valley State University, she expects to be $50,000 in debt.

The 20-year-old Detroit native works as a receptionist at the Lanthorn student newspaper to help pay rent and living expenses. She receives $2,750 each semester in federal Pell grants, on top of loans.

Paying for college is difficult, she said, but it’s possible.

“I feel like financial problems shouldn’t be a reason why kids don’t go to college,” she said. “You have to get an education in order to make it.”

That’s what many students across Michigan face: An expensive education, increasingly necessary for a well-paying career.

As state support has dropped over the past three decades, Michigan’s 15 public universities have compensated by raising tuition, fees and room and board. Students and their families pay about $3,000 more each semester in tuition than they did 10 years ago.

State Rep. Bob Genetski fears higher education is pricing itself out of the market for middle-class families.

The Saugatuck Republican is proposing a commission to recommend ways to govern the universities more efficiently. He also said officials should consider making them more vocational.

“We need to look more at where the jobs will be in the future and put our eggs in those baskets,” said Genetski, chairman of the House’s higher education subcommittee.

But Saginaw Valley State University President Eric Gilbertson maintains higher education remains a “good investment.”

Census figures show typical college graduates can earn $1 million more over a lifetime than their counterparts.

“The value of a college degree is going up,” Gilbertson said.

Student needs on rise

So is student debt. The average university student will leave college owing $20,000 to $24,000 in loans.

Over the past 10 years, the number of Michigan State University students applying for aid has gone up 23 percent, said Val Meyers, associate director of financial aid.

“People who used to be able to pay themselves and didn’t bother to apply are now applying because they need some help,” she said, given rising costs and the struggling economy.

In 2001-02, MSU had 24,700 applicants for aid. By 2009-10, the last full year available, it was 30,400.

With federal aid, every student who applies is able to receive loans, grants or both, Meyers said. Need-based Pell grants in 2011-12 offered up to $5,550.

At the same time, state scholarships and grants have been reduced. The Legislature ended the $4,000 Michigan Promise scholarship in 2009, and the Michigan Competitive Scholarship decreased its funding, Meyers said.

“That leaves loans as the biggest program that we have to fill the gaps,” Meyers said.

University funding dwindles

At the same time, taxpayer support has dropped.

In 1987, the state provided 60 percent of universities’ funds. This year, appropriations average 22 percent, said Michael Boulus, executive director of the President’s Council, State Universities of Michigan.

That’s a record low. University funding dropped 18 percent under former Gov. Jennifer Granholm, and in Gov. Rick Snyder’s first year it was cut another 15 percent, or $827 per student, Boulus said.

On average, he said, universities raised tuition $641 per student, leaving them to recoup $186 to recoup.

“We’re hopeful the economy picks up again and that the state will recommit itself to partner with us,” he said.

It’s tough to say whether the public universities will face further cuts, Genetski said.

Michigan spends $1.2 billion to $1.3 billion a year on higher education, he noted, third in general fund spending behind prisons and Medicaid.

But Lou Glazer, president of the Ann Arbor-based think tank Michigan Future, notes Michigan ranks 49th in the nation in per-pupil spending for higher education.

“It’s a big mistake,” Glazer said. “Disinvesting in universities is not smart.”

Of the 15 states that have the highest college attainment rates, 13 have the highest incomes, he said.

Glazer also said a focus on occupational training misses the purpose of a university: To prepare students for a career. That’s especially important as trends change over time, he said.

“It’s career-building stuff, not just first-job stuff,” he said. “It’s a unique opportunity to build skills that will serve you for a lifetime.”

Saginaw Valley’s Gilbertson agrees. Public universities, he said, must serve the public interest even if a program is not cost-efficient.

Take engineering for example, he said. SVSU’s department costs more to operate than it brings in, but having that career option is important for the region and state, he said.

Saving money

As funding has decreased, Michigan’s universities have worked to cut costs.

For a decade, Central Michigan has focused on making the institution more economically efficient, President George Ross said. Administrators re-engineered the business processes, and facilities managers have embraced energy conservation.

“In order for us to operate and continue, we have to cut costs but still deliver quality,” Ross said.

BY THE NUMBERS

Higher Education costs at a glance:

$10,426: Average cost of tuition and fees at public universities this academic year

110: Percent increase in tuition and fees since 2002

$1.6: Billion in state aid for university operations in 2002

$1.2: Billions in state aid for university operations now

60: Percent of state appropriations for higher education in 1987

22: Percent of state appropriations for higher education now

15: Percentage cut to higher education appropriations this fiscal year

$827: Cut per student cut in appropriations

49: Michigan's national ranking in higher education spending

$20,000: Average student loan debt

5: Percentage decline anticipated in high school graduates

Saginaw Valley has taken similar steps. But Gilbertson said the administration uses a scalpel on educational programs, paying attention to which are growing and which are shrinking. When interest rates were down, the university refinanced its debt.

“There is no substitute for good management,” Gilbertson said.

Of CMU’s graduates, 71 percent stay and work in the state, raise families and contribute to the tax base, Ross said.

Competing colleges

Despite the cost, more students than ever are going to college. Several universities reported they were at or near record enrollment.

That might not be the case in the future, however. An expected decrease in high school graduates and limits on growth at some universities are bound to increase competition.

The University of Michigan announced it will limit its freshman class next fall, as did Saginaw Valley. Central Michigan slightly decreased its freshman class this year because of housing limitations.

The National Association for College Admission Counseling predicts Michigan will see at least a 5 percent drop in public high school graduates over the next decade. CMU’s Ross said he believes universities will become more competitive. “All 15 of us will go after the best and brightest,” he said.

Staying competitive — including program quality and intangibles like “feel” — will be essential, Gilbertson said.

Unlike a business with continued sales and income, a university “sale” is once a year, he said. One bad year of enrollment can have an effect for four or five.

“It takes a long time to recover from that,” Gilbertson said.

Paying the price

MSU’s Meyers cautions students about paying today’s bills with borrowed money.

Student loans are not dischargeable in bankruptcy. Some federal options include forbearance or an income-based repayment plan, but private loans often don’t, she said.

At MSU, about 45 percent of students graduate without borrowing, she said. That means most students have debt.

Meyers recommends students do not borrow excessively, live leanly, drive economical cars and forgo spring breaks.

“The less debt you have when you leave school, the better off you are going to be,” she said.

Shanti Collins is optimistic. Despite the $50,000 in debt she faces, the GVSU student said her education is worth paying for, especially as she heads into the booming health field.

“I don’t believe it’ll be hard for me to get a job after I graduate,” she said.