Brigham Young University, like literally every other university, institution, and family in our country, is affected by current economic conditions. The cost of educating students is high and seems to only get higher as each year passes.  

In these times I, like you, listen very carefully when the apostles and prophets speak. I don’t hear any despair in their voices. Although they are keenly aware that we live in difficult and uncertain times, I hear only assurance from our leaders that this work will move forward.  

BYU stands in a solid place, thanks mainly to our generous sponsor—The Church of Jesus Christ of Latter-day Saints. We are, of course, dependent on tithing for funds to operate the university. We see this as positive not only for the security it brings but also for the loyalty it engenders. 

I am sometimes asked why we don’t just drastically raise tuition to defray costs. In comparison to other universities of our size and stature, our tuition would be a bargain even at twice the current price. Many of our students’ parents—the logic goes—can afford to pay more for their children’s education. And a related question is why we continue to fund scholarships in light of BYU’s already low tuition rates. 

These questions are honest ones, and they are not new.  

In August 2001 then Elder Henry B. Erying told us his response to these questions:

“I had a man push his finger in my chest once to convince me that it was a stupid thing not to raise the tuition dramatically. He talked about how far behind we were in tuition compared to schools he judged inferior to ours. He said it was wrong to give such a bargain to rich families and that we could always use the excess revenues to give scholarships to those who were poor. . . . Most of you sense something wrong in those words. In a place where the Savior can come, the poor will be exalted. They will have the chance for education. It will be funded by consecrated offerings, not out of ‘excess revenues.’ And costs will be less—far less—because those who provide the education will treat all funds as sacred” (“A Consecrated Place,” Annual University Conference, August 27, 2001). 

Part of our responsibility in building the kingdom is strengthening it in every locale. At BYU we strive to do our part to cultivate leaders—whatever their origin and economic situation. 

Now let me tell what I think is another compelling answer. Consider what has happened in higher education across this country. Most of the very fine private universities in this country began as religiously sponsored organizations. In almost every case, these schools have strayed from their religious roots and embraced the secular. 

The BYU Board of Trustees wants our faculty of 1,600 to really understand where their primary loyalties rightfully lie. That is why the basic and fundamental salaries of everybody at BYU come from appropriated funds. We could raise tuition to cover salaries, but that would detract from this ever-important reminder. 

As directed and for these reasons, we will continue to keep tuition low for students and to offer scholarships. In fact, one of our goals for 2009 is to raise $20 million from alumni and friends of BYU to fund new scholarships. 

Scholarships at BYU are available because of the generosity of many. Whether they are provided through tithing or donations directly to the university, these funds are sacred, and we feel a keen responsibility to administer them judiciously. 

BYU’s philosophy regarding scholarships is that they are given to encourage continued commitment to spiritual and intellectual growth. The gift of a scholarship creates an obligation on the part of the recipient not only to use it wisely but also to prepare for expanded and purposeful service in the Lord’s kingdom. 

Scholarships allow us to invest in and attract accomplished students, as well as to make higher education available to those who may not be in a position to take advantage of our already low tuition.  

Students who have received scholarships are the beneficiaries of someone else’s generosity, and we encourage them to perpetuate goodwill. We invite scholarship recipients to commit to give back to the university’s scholarship fund as they are able. This teaches them the principle of replenishment and ensures that future students will be able to enjoy the blessings of a BYU education. We also ask them to provide a minimum of 15 hours of meaningful service— as defined and pursued on their own—for each semester they are awarded a scholarship. 

I communicate to you my thanks; I am grateful for what you do to assist our students. You are truly helping to advance the mission and destiny of BYU.