Economy sends students back home to college

updated 4:45 p.m. ET June 25, 2009

SEATTLE - A few months ago, Rebecca Gottlieb faced a difficult choice: continue on at her $50,000-a-year private school in Massachusetts, or leave her new friends and life and enroll at a cheaper school near home in Washington.

Gottlieb, 19, decided to transfer, dumping Tufts University for Western Washington University and joining the growing numbers of college students realizing that attending their dream school was no longer financially sustainable.

"My parents set up a college fund for me when I was little," the 19-year-old from Bainbridge Island said. "One year there almost drained it."

For many transfers, the financial burden dawned on them after several years. The poor economy and high tuition has already filtered down to high school seniors. A recent survey showed that many don't want to make the same mistake as their old counterparts — they're forgoing costly schools now.

When she starts classes in the fall at Western's campus overlooking Bellingham Bay, Gottlieb will be paying about $15,000 a year and be in the company of plenty of other transfers.

Public university transfers on the rise
The public college had an unusually large number of transfer applications this year, said admissions director Karen Copetas. The school saw a 28.5 percent increase in the number of students who wanted to move from another four-year school.

Copetas said the students gave many reasons for their decision, but money came up repeatedly. She said they are being cost-conscious consumers and wondering if it's necessary to spend so much money on an undergraduate education when expensive graduate school may be in the future.

Admissions directors at public universities around the country are reporting bumps in transfer applications, said Barmak Nassirian, a spokesman for the American Association of Collegiate Registrars and Admissions Officers.

Indiana University has seen a 23 percent increase in transfer applications for next fall; the University of North Carolina had a 15.3 percent increase; and the University of California system saw an 11 percent increase in transfers of in-state students.

Giving 'safety' schools a chance
Graduating high schoolers are determined to avoid having to transfer due to money. A National Association for College Admission Counseling survey released this month showed 71 percent of high schools reported that more of their students are forgoing their "dream schools" than in previous years.

Gottlieb's parents told her they'd find a way to pay for her top choice — even after nearly draining her college fund — if she decided to stay. Thinking of majoring in environmental science, she knew Western had a good program and decided to give her safety school another chance.

"It was completely my choice. They said whatever I did, we'd find a way to make it work," said Gottlieb, whose father is a municipal bond lawyer.

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