IU proposes tuition increases

The cost of an IU education isn’t getting cheaper, as the University plans to propose a 5 percent tuition increase for in-state students and a 9 percent increase for out-of-state students.\nThese proposals will officially be decided at a May 21 public hearing conducted by the IU board of trustees.\nAdministrators recommend these increases for undergraduates residing at either in-state or out-of-state residencies.\nNeil Theobald, senior vice provost for budget and finance, said factors in tuition increases are different for both residents and nonresidents. \n“The resident rate is tied to affordability,” Theobald said. “This will be the fourth straight year of a 5 percent increase. By the time you take the costs of faculty – we are very labor intensive – simply to do what we are doing now is adjusting the residency of cost increases.” \nFor nonresidents, the competing outside markets affect costs of tuition. Students can go to Michigan or Ohio StateOhio State or Illinois, Theobald said, and so the strategy becomes to price IU in the market that is “in the middle” of the competing costs of other schools. \nThe 9 percent increase, Theobald said, allows IU to be in the position to recruit nonresidents at a cost that is still competitive, but not incredibly expensive, as other institutions may be. \nUnder the proposed rates, in-state IU undergraduates would see an increase of $376 for 2007-2008 academic year and would pay $7,837. Nonresidents would see an increase of $1, 843 and pay $22,316 for the 2007-08 academic year. \nFor graduate and professional students, the proposed increases would vary from campus to campus and program to program.\nTheobald said, for example, that students in the IU School of Law may pay $1,047 under the proposed cost increase. This would be a flat fee, Theobald said.\nAs tuition increases, Theobald said financial aid would increase as well.\n“We realize it is difficult to go to school as the costs go up, but we are making every effort we can to make it affordable for low-income students,” Theobald said.\n He said under the proposal, undergraduate financial aid will go up by 11 percent.\nWith financial aid factored in, Theobald estimated that, for undergraduate residents, the tuition may increase at most 4 percent, but will vary between students.\nFor nonresident undergraduates, the average tuition increase with financial aid factored in will be about 7.5 percent. \nThe board of trustees will hear these tuition increase proposals for the 2007-08 academic year, as well as the financial aid programs being made available to help low- to moderate-income students.