Student tuition rates to increase

Returning undergraduates can expect a few cost increases on their Bursar statements next year.

Indiana residents will experience a 3.8 percent hike in tuition costs for the 2012-13 academic year as compared to previous years’ tuition. Non-residents can expect a 6.2 percent increase.

The credit hour flat fee, paid by all full-time undergraduates carrying less than 17 credit hours, is set at $4,375 per semester for in-state students and $15,100 for out-of-state students.

The Indiana Commission for Higher Education’s non-binding target tuition increases for the coming academic year, released in May 2011, suggested a 0 to 3.5 percent increase in tuition and mandatory fees from the previous budgetary cycle.

The Board of Trustees approved the fee schedules for the 2011-12 and 2012-13 academic years, also in May 2011, announcing in-state undergraduate fees would increase by 3.5 percent for both academic years.

The 0 to 3.5 percent increase in tuition and mandatory fees was also suggested for Purdue University’s West Lafayette campus, which enrolled nearly 40,000 students for the 2011-12 academic year.

Regional IU campuses will experience tuition and fee increases for in-state undergraduates as well, with all campuses except IU Southeast preparing for a 2.5 percent increase. IU Southeast students can expect a 2.4 percent increase.

Although in-state instructional fees are increasing 3.8 percent, the University still adheres to the 3.5 percent maximum increase set by the Commission for Higher Education when mandatory fees, such as the student activity fee and technology fee, are factored into the equation.

However, the temporary Repair and Rehabilitation fee, introduced in fall 2011 after state funding for University renovations and repairs decreased, was not included in the University’s calculations in regard to the 3.5 percent increase.

When the temporary $180 annual fee is factored in, the total cost for in-state
undergraduates will increase 5.4 percent from this year’s costs. This includes tuition, mandatory fees and the temporary Repair and Rehabilitation fee.

Associate Vice President for University Communications Mark Land said part of the reason for the tuition and fee increase is due to a decrease in state support. He added that the majority of the University’s revenue comes from four main sources: tuition, donations, state support and federal research grants.

“I don’t want it to sound like we’re blaming the state, but it’s a fact that when one revenue source changes, we need to make some of it up,” he said.

Land said the majority of gifts to the University are given with a specific destination in mind, such as for a specific school or a scholarship fund. Consequently, the money does not go into a general fund for the University to allocate where necessary.

Addressing the issue of increasing tuition is a balancing act, he said, as costs associated with staff healthcare, salaries, benefits and operating costs continue to increase.

“We’re very much aware that people are price-sensitive, more so than usual because of the economy,” Land said. “We want to provide a good education, but we also want to provide a good value.”