Although the US is known for its outrageously expensive universities, there are two colleges in Kentucky that have been offering free education for decades: Berea College and Alice Lloyd College.
To cover costs without tuition revenue, Berea’s board of trustees did something almost 100 years ago that impacts its financial situation today. In 1920, the board ruled that any unrestricted money given to the college would be invested in an endowment to grow over time. The endowment is now worth around $1.2 billion, and profits from the investments cover a large portion of what it costs to educate more than 1,600 students. Most students come from Appalachia. They all come from low-income families. And none pays for tuition.
On the other hand, Alice Lloyd College does something different. Rather than wait 75 years for their endowment to completely offset tuition revenue, this small college showed it’s possible to fund tuition without a massive endowment. Instead, Alice Lloyd, herself, went on a popular TV show in 1955 where the host asked viewers to send a few dollars to the college. Within weeks, the school received around $200,000 in donations. The school still relies heavily on fundraising.
But while Lloyd never asked students to pay, she did ask them to go home and serve their neglected communities. Today, the college serves around 600 mostly low-income students. According to one school official, about 85% of alumni return to live and work in Appalachia.
While Berea College and Alice Lloyd College are unconventional examples of how to make tuition-free, they do show that it’s possible in America.
