Education Note: Alabama State University
Institutional Overview
Alabama State University (ASU), located in Montgomery, Alabama, is a public historically Black university founded in 1867. Current enrollment stands at approximately 3,603 undergraduate students, with a gender distribution that serves a predominantly Black student population. The institution maintains a 14:1 student-faculty ratio with 59.5% of classes having fewer than 20 students. As a public HBCU, ASU's mission focuses on providing accessible education while maintaining ties to its historic role in serving underrepresented communities.
Risk Score
Risk Score Analysis Risk Score = (Annual Debt: $31,000 / Expected Salary: $37,600) × (1 - Graduation Rate: 26%) = 0.82 × 0.74 = 0.61
This concerning risk score reflects significant challenges in student outcomes and financial return on investment. The high debt-to-income ratio indicates graduates may struggle with loan repayment relative to earnings potential. The particularly low 26% graduation rate results in a high risk multiplier of 0.74, suggesting substantial challenges with student retention and completion.
Strengths
ASU demonstrates distinctive advantages in its affordability, with in-state tuition of $11,068 comparing favorably to peer institutions. The university's 96% acceptance rate promotes accessibility while maintaining selective admissions standards (SAT scores between 865-1069). Strong financial aid support reaches 93% of students, with an average need-based aid package of $5,661. Student reviews consistently praise dedicated faculty and the supportive campus community. The university's location in Montgomery provides unique opportunities for civic engagement and internships. Recent program developments in health professions and business show promise for career outcomes.
Weaknesses
ASU faces serious challenges with its 26% graduation rate, one of the lowest among peer institutions. Student reviews highlight concerns about administrative efficiency and campus infrastructure. The university's ranking of #392-434 out of 436 National Universities indicates broader institutional challenges. Limited financial resources constrain investments in facilities and academic programs. Student feedback consistently mentions issues with financial aid processing and administrative communication. The high acceptance rate (96%) raises questions about student preparation and support services.
Bottom Line for Board of Directors
Alabama State University's risk score of 0.61 and 26% graduation rate indicate critical challenges requiring immediate board attention and strategic intervention. While the institution maintains important strengths in affordability and accessibility, the combination of poor student outcomes and low rankings creates substantial institutional risk. The board should prioritize three key areas: improving student retention through enhanced academic support services, strengthening administrative efficiency particularly in financial aid management, and developing a sustainable model that better balances accessibility with student success. The ranking of #392-434 out of 436 National Universities demands comprehensive reform of academic programs and student support services. The institution's future viability depends on swift action to improve student outcomes while maintaining its historic mission of accessibility and affordability.