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Rethinking the Cost of Student Life at HBS

Former SA Co-President Sebastián Negrón-Reichard (JD/MBA ’24) advocates for a restructuring of SA dues.


As tuition and living expenses soar, HBS students face an additional, often unexpected hurdle: thousands of dollars in fragmented fees for essential social and professional events. The current Student Association dues system inadvertently adds to this pressure and creates barriers to full participation in campus life through its piecemeal approach to charging students. As a former Student Association co-president, I'm writing to advocate for action that could significantly improve student financial planning and affordability: restructuring Student Association dues.


Let me provide some background on how dues for the Student Association and related activities work. The average HBS student pays around $550-900 annually in various Student Association-related fees, often through fragmented payments throughout the year. While some of these costs are technically optional, the social pressure and desire to fully participate in the HBS experience make them feel mandatory for most students. The cost of student life at HBS can be summarized in four main buckets: 

First, every student is charged a $300 annual Student Association fee (or $600 over two years), which is baked into the regular student bill. For the average student – understandably focused on being a student rather than running student government – how these funds get used can be somewhat of a mystery. But believe me, the $300 fee alone isn't sufficient to fund even the most basic Student Association activities, which is why additional revenue must be raised through event tickets and merchandise sales.


Second, there are annual Student Association-related ticket costs of around $250 annually for major events like Holidazzle and RC/EC gala. Why? Because, as I just mentioned, the $300 annual fee is simply too low to cover all the programming that the Student Association organizes. Between these first two buckets, students spend about $550 per school year (or $1,100 over two years).


Third, there is a one-time fee at the beginning of the first year that students pay to cover the cost of their section dues. These dollars pay for some of the events that the section (a student’s first-year cohort) will organize to promote bonding and celebrating together. This can amount to up to $350. 


And fourth, there are hundreds if not thousands in costs to pay for annual club memberships, conferences, and professional treks that are integral to the HBS experience. Not to mention thousands in spending left and right to attend parties, trips, treks, dinners – you name it. Of course, these are voluntary, but truly an essential component of the experience. 


My proposal is focused on the first three buckets. Charging students dues in their bill and then again for Student Association tickets makes students feel  "nickeled-and-dimed.” It contributes to perceptions of HBS as expensive and exclusive – you have to pay more to participate. As the year rolls through, students are caught off guard as they’re forced to pitch in another few hundred bucks with little notice, rendering them unable to properly plan their finances for the months ahead. The current approach can especially create social pressure and financial stress for students from diverse socioeconomic backgrounds.


Instead of the current hybrid approach, I propose increasing the annual Student Association dues to a number that covers all major HBS student events from the first three buckets I just described. This would amount to approximately $900 for the first year and $550 for the second year. This number is not final; it should be further tailored and analyzed, and the Student Association’s additional revenue-raising capacity through the Products Office should also be factored into this calculation. But overall, this change would help with financial planning as it would allow students to pay up-front, once a year, for the entirety of core HBS experiences. 


This proposal, inspired by an HBS lesson about “bundling the pain” of costs, would make all class-wide and school-wide Student Association events open to all students. While some might argue for letting students “vote with their dollars,” HBS's educational model is built on full community participation – from required class attendance to section activities. Historical attendance data shows that most students already attend these events, just with more financial stress and planning uncertainty. This effort will make it less of a burden for students of diverse socioeconomic backgrounds to engage fully in life at HBS. 


One important detail is that this proposal would not change the overall Cost of Attendance, or in other words, how much the MBA costs. This proposal is about when and how students are charged. And because it doesn’t increase the overall envelope of spending, it is cost-neutral for the Financial Aid Office and financial aid donors. Students already end up paying for all these buckets anyway – in the revised model, these charges would only come up once at the beginning of the school year, thus leading to a more predictable outlay of expenditures from students. 


The Student Association co-president role is naturally short-term focused (i.e., a one-year term). I certainly was. But I’ve used the two years since my tenure ended to educate myself and student leaders on the history and structure of student dues and the costs of extracurricular and social life at HBS. And I see a path forward that could work. 


The change here is up to the Student Association Senate, the "legislative" branch of the student body leadership. They are the ones who can change this structure. The Senate would provide crucial oversight through multiple mechanisms: mandatory quarterly budget reviews, public posting of all expenditures, and required advance approval for any significant spending changes. These checks and balances, combined with increased transparency and clear communication from the Student Association, would ensure student dollars are spent responsibly and effectively. The potential benefits – improved socioeconomic inclusion, reduced financial stress, and enhanced school unity – far outweigh the administrative effort required to implement these controls.


I call upon the current Student Association Senate and leadership to seriously consider this proposal. It's an opportunity to make a lasting positive impact on student life at HBS. By taking this step, we can create a more inclusive environment where all students, regardless of their financial background, can fully participate in the rich tapestry of experiences that HBS offers.

Sebastián 'Seba' Negrón-Reichard (JD/MBA '24) currently serves as an Advisor to the Mayor of Boston through the HBS Fellows Program. Originally from Puerto Rico, he played a key role in the historic restructuring of Puerto Rico's $125B debt crisis before pursuing his graduate studies. During his joint degree at Harvard Law School and Harvard Business School, Seba completed summer internships at Sullivan & Cromwell LLP, a leading consulting firm, and a fintech startup. His leadership roles include serving as HBS Student Association Co-President (2022-23) and sitting on the Harvard/MIT Cooperative Society Board of Directors. Seba gave remarks at both his business school and undergraduate school graduations.

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