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US state systems freeze tuition fees as enrolment falters

Higher education expert warns that widening access could suffer if funding for financial aid is eroded

Published on
February 6, 2018
Last updated
February 6, 2018
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Growing numbers of US state university systems are predicted to freeze tuition fees in response to faltering enrolment levels, but a leading researcher has warned that this could undermine efforts to widen participation.

Last month, the University of Illinois system, which has three campuses, and聽Northern Illinois University聽both froze in-state tuition fees for the fourth consecutive year, with a view to increasing numbers of applicants.

Student numbers in Illinois plummeted because of a聽two-year state budget stalemate聽between July 2015 and July 2017, during which time universities received just a fraction of their typical levels of funding. The state鈥檚 overall population has also been declining since 2014.

Iris Palmer, a senior policy analyst at the thinktank New America, said that public university systems tended to freeze tuition fees when the state increased its direct investment in higher education and to raise fees when university funding was cut.

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However, she predicted that an increasing number of public university systems would freeze tuition fees in an effort to increase enrolments.

She cited the聽University of Maine聽as an example of a public system that has recently taken this step 鈥渢o make the schools more appealing to out-of-state students and to other students in the state鈥. Like Illinois, Maine has a declining population as well as a high number of colleges and universities, she said.

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In-state tuition fees at the University of Maine increased last year after having been frozen for the previous six years. In addition, four of its campuses pledged last year to cover the cost of tuition and fees for low-income students.

Louisiana, West Virginia and several New England states also suffer from a declining youth population, Ms Palmer said.

鈥淚n those states, getting good press from freezing tuition to try to recruit students will continue,鈥 she said. 鈥淎nother thing they鈥檙e doing is offering out-of-state students in-state tuition rates to try to drive up enrolment.鈥

Ms Palmer added that universities would have to 鈥渇igure out how to make do with less funding if they continue to freeze tuition as a way to drive enrolment鈥.

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But John Douglass, senior research fellow in public policy and higher education at the聽University of California, Berkeley, said that 鈥渇reezing undergraduate tuition [fees] at public universities is not necessarily a good policy鈥 if the aim is to improve access.

鈥淲hen the University of California significantly increased tuition in the wake of the Great Recession and declining state funding, the number of lower-income students enrolling in one of the university鈥檚 nine undergraduate campuses went up. That is because tuition is now a significant funding source for financial aid,鈥 he said. 鈥淎bout 33 per cent of all tuition income at UC, and most major public universities, goes to financial aid.鈥

Ms Palmer agreed that universities could 鈥渢arget lower prices better to low-income students鈥 by providing financial aid rather than 鈥渒eeping the overall sticker price of tuition for the college low鈥.

However, she said that this 鈥渉igh-tuition [fee], high-aid鈥 model was 鈥渧ery complex鈥 and in practice was not well understood by low-income students.

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Terry Hartle, senior vice-president for government and public affairs at the American Council on Education, added that tuition fee freezes were a 鈥渄ouble-edged sword鈥: they are 鈥渆asy to put in place鈥, but fees tend to 鈥渏ump considerably鈥 in subsequent years.

ellie.bothwell@timeshighereducation.com

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Reader's comments (1)

For one hundred years [1868- 1967], California taxpayers funded the zero tuition, world class University of California, Berkeley, for their children. How was that possible? Today, Californians and others can't afford to send their children to University. What happened? The essential bases for the lack of current funding are: the electorate became fragmented [e pluribus multum and a resultant diminution of "sense of collective responsibility"], California became overpopulated, the additional population did not reflect the economic substance and integrity of the population of the first hundred years, immigration driven excess population placed enormous pressure on resources, and drove up the cost of land and derivative costs way beyond inflation, and because millions of the newcomers were poor, their taxes didn't begin to cover the costs of K12, welfare, etc for their families, and many of their children ended up in prison. As a consequence [somewhat simplified] State funds previously used to support the University were diverted to increased funding of K12, to prisons, and to welfare. Given the irreversible nature of much of what has happened, the propaganda of the California elite and the apathy of the general populace in supporting an analysis of what happened, to better enable a solution, the future for California middle class students and their parents will be even more financially challenging than it is now.

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