Daniel F. Sullivan, president of St. Lawrence University, looks for the hidden costs of low retention rates, from the student perspective. He notes that four years of attendance at a public institution costs less than at a private institution -... however, given the higher risks of not graduating in 4 years at the public institution, the eventual overall costs might really be closer or even favor private colleges.

In this time of special financial stress for so many American families, the cost of college attendance may seem especially daunting. Prospective students and their families should, therefore, consider the implications of this analysis as they weigh the differences between public and private higher education options—and between high-four-year-graduation-rate and low-four-year-graduation-rate options, whether public or private. It is clear from all the scenarios presented in figure 1 that if a student manages to graduate in four years from a public institution, the total cost of attendance will be lower than at a private institution. On the other hand, the risk of not graduating in four years is much higher at a public institution. In the event that a student attending a public institution does not graduate in four years, but could have done so by attending a private institution, the cost savings of the public choice remain only if the student is non-aided and attending an in-state public institution.

To return to where I began, the single most important step colleges and universities—especially public colleges and universities—can take to lower the student and family cost of college attendance is to improve retention, thereby increasing the four-year graduation rate. With the exception of the rates for highly selective institutions (and these can be higher, with work, as well), the four-year graduation rates of both public and private colleges and universities in America are embarrassingly low.