IU board approves 3% tuition jump after large-scale fee audit
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The Indiana University Board of Trustees approved a 3% tuition and fee spike for all IU campuses at its meeting Wednesday afternoon. The decision comes after the university established a new simplified fee structure that includes many fee eliminations and reductions.
The approval will increase annual tuition and mandatory fees by 3% for undergraduate in-state students at all university campuses. This would result in a $343 rise for Bloomington, $304 for IUPUI and $238 for regional campuses in Gary, Kokomo, New Albany, Richmond and South Bend.
The university says the change is less than national trends, commission guidance and inflation of 5.5%. Executive Vice President for Finance and Administration Dewayne Pinkney said since 2015, IU has increased in-state tuition 1.5% compared to the national average of 2.34%. The Indiana Commission for Higher Education recommended a 3.5% increase.
The funds generated through the increase will be funneled to support faculty recruitment and retention and address increases for labor, services and other costs.
“This recommendation for a modest tuition fee increase reinforces IU’s steadfast commitment to student affordability while allowing us at the same time to advance a positive agenda for IU’s future that is aligned with the needs of our great state of Indiana,” IU President Pamela Whitten said.
Whitten speaks on the process to review the fee system.
Trustees were fully supportive of the change and especially appreciative of the university’s initiative to unravel and clarify the fee system.
Chair Quinn Buckner said IU has made a concerted effort to organize and manage this aspect of their finances, especially after pandemic-triggered difficulties.
“Anytime you’re talking about raising something for somebody, particularly when you’re in a service business for practical purposes, what have you done to manage your expenses,” Buckner said. “You’ve been able to do that.”
Trustee Jeremy Morris agreed and said this will assist students and their families, especially first-generation college students, to know and expect that the sticker price of their education will be consistent and not sprinkled with hidden fees.
“I really think this is forward thinking,” Morris said. “It’s really smart. It’s saving students money in the long run, and I think that’s something that may be overlooked.”
Morris talks about what it’s like for families to deal with hidden fees and compliments the new system.
The transparency and simplification of student fees
IU established an Academic Tuition and Fees Task Force last year aimed at completing the task of auditing the system, reviewing data and reducing the number and cost of fees with a goal of greater transparency for students. Pinkney said the new fee structure will also take the burden off the staff to navigate the previous system.
In its financial presentation to trustees, the university reported a reduction of 542 fees, amounting to over 50% of its fee list. The university said this will save the student body $14.5 million per year starting in the 2024 fiscal year.
“With the reduction of other fees, many IU students will see a reduction in the total tuition and fees that they that they would have paid in the upcoming year,” Pinkney said.
Pinkney talked about what changes students may see in their tuition bill.
The reduction of fees is not consistent to students across the board like the tuition increase. It may vary based on program and other student statuses. Many of the fees eliminated apply to graduate, international and out-of-state students, said Sam Adams, associate vice president for budget and planning.
With the new system, Pinkney said students will have access to a summary and the details of where those fees are routed.
While some fees were struck, others were rolled into larger line items, Pinkney said. For example, course-specific fees will now be included in overall program costs. He said this is so students won’t see a significant difference of costs semester-to-semester based on the classes they are taking.
Comparatively, the university boasted these changes will accurately reflect IU as one of the lowest-costing universities in the Big Ten.