Taja Coleman, Arts & Sciences sophomore, is a student who thought she did everything right. She got above a 3.5 GPA in high school, applied for more than 20 scholarships and was accepted to a prestigious Catholic university.

Now she thinks she has to leave Creighton because she can’t afford the tuition, and she is not the only one.

In a recession, students and families are apprehensive about applying for loans, and financial aid does not cut it.

-Enrollment

“Last year my parents were living in separate houses, so I was eligible for more money under FAFSA,” Coleman said. “Now they live together, so I don’t have as much money.”

Dr. Ernie Goss, economics professor, said she isn’t alone, and he expects enrollment to “soften” next semester and next year.

“When people start losing their jobs, we will really start to see the impacts,” Goss said.

Don Bishop, associate vice president for Enrollment Management, said he, along with the financial aid staff, is working to keep every student at Creighton.

He said the initial shock of the stock market going down is causing people alarm, but he said he thinks it could sort itself out in the coming months.

It is too early to tell if the freshman class will be smaller, but numbers for next semester are more immediate, Bishop said.

He has been working with families with immediate concerns.

“In the next five or six months, the economy will be in stronger shape,” he said.

Coleman said she has looked for help, but the only option she’s been offered is taking out more loans. After three semesters she already has taken out $14,000 in loans, and she still needs another $7,000 to receive her transcript to transfer.

“I would like to go to another college, but I can’t without my transcripts,” she said. “I’m just going to work for now and see what happens.”

She said national outlook is one reason why she is leaving. Housing prices and the job market have caused her to cut her losses.

“I don’t know why I would take out more money when I’m not sure I’ll have a job when I graduate.”

Bishop said he is working to counteract the effects of the economy, including having the smallest tuition percentage increase next fall at nearly 4.5 percent.

-Endowment

One factor in the distribution of financial aid is Creighton’s endowment fund, a pool of donated funds that are invested. Money from the endowment fund is used to pay salaries, pay for the upkeep of buildings and fund part of the financial aid to students.

Dan Burkey, vice president of Administration and Finance, said in June the endowment was at $295 million. As of this week, it has dropped to $255 million.

Before students think this means they will be losing money or costs will skyrocket, it’s important to know that only 4.3 percent of the endowment is used every year.

Still, it does mean there are less funds to go around. To make sure everything is still able to be paid for, Burkey said he expects to freeze or lower the amount of money taken from the endowment.

-Hiring freeze

One step already taken to combat the crisis is a hiring freeze that went into effect last week. Burkey said crucial positions that deal directly achievement will still be filled after a review by the budget committee.

“It is a definite way to save money,” Burkey said. “We need to pick up some slack and make sure the critical work is still done and the quality of education is still excellent.”

The last freeze was in 2002.

Goss said this was the smartest, safest move Creighton could make at this point.

“We have a commitment to our faculty and staff first,” he said. “We shouldn’t hire someone if we aren’t sure we’ll be able to pay their salary,” he said. “We should cut back before we would have to start laying off.”

All divisions in the university were also asked to identify ways to cut the budget or increase revenue.

-Advice for students

Graduating seniors should consider trying different avenues in life, Goss said. Jobs aren’t readily available, and he said students should not take the first offer that comes along because he or she is scared about the job market.

“This is a perfect time to take an internship, go to grad school or join the Peace Corps, something that you always wanted to do but didn’t have time,” he said.

Goss said he graduated in a time of recession, and it isn’t something to stress out over too much. “These things happen in our economy,” he said.

When these things happen, students and families have to face tough decisions, including Coleman who has weeks left as a Creighton student.

“I love the campus, I love the people, I mean, my whole life revolves around this Creighton bubble,” she said.