Thursday, June 19, 2008
Last Thursday, the Kansas Board of Regents voted to allow the University to increase tuition costs and implement a tuition compact that is to be enforced on all incoming freshmen. Students in the University’s tuition compact will pay an 8.4 percent increase in tuition while students who are not in the tuition compact will pay a 6 percent increase in tuition. Students who are locked into the compact will pay the same amount of tuition for four years. Students not in the compact will pay a level of tuition that is subject to future increases until they finish their degree.
While, at first glance, the tuition compact looks like a money saver for students, it will not benefit the University or its students in the long run. The tuition compact does not give the University the flexibility to address economic concerns during times of economic hardship and economic boom.
In 2001 and 2003 tuition increases were less than 5 percent. If a similar situation occurs in the near future and the University decides to lower the noncompact tuition increase by two percent or less, the students who are locked into the tuition compact will be paying more than noncompact students. If tuition costs do not rise, compact students will be carrying an unnecessary economic burden. The University will receive more money than it would have if all students were paying the noncompact rate.
While a decrease in tuition is unlikely, a more serious and more probable situation could occur. If three years from now, there is a situation that causes the University to want to raise tuition by 25 percent, it will not have a large population of its student body to call on because they will be locked into set four-year plans that will only account for the increases of previous years. The worst case scenario involves students who pay the noncompact rate of tuition (i.e. transfers, fifth, sixth and seventh year students and non traditional students) taking the lion’s share of the monetary burden along with the incoming freshmen class. Such extreme jumps in tuition are not uncommon. Only six years ago, the University proposed a 25.21 percent tuition increase. The following years saw proposed increases of 20.75 percent, 15.9 percent and 14.3 percent.
The economic burden placed on students who are not covered under the compact would be financially taxing to an extreme degree. Students not under the compact would be paying for the education of those participating in the compact.
Even if tuition cost increases don’t reach double digits, problems with the tuition compact still exist. Between 1990 and 2005 (the only years that offer sufficient data), only about 70 percent of freshmen continued at the University after their sophomore year. If trends continue, an average of 30 percent of students will not enjoy the full payoff of being part of the tuition compact. Students who drop out or transfer after their freshmen year would pay 2.4 percent more than students who pay the noncompact rate. Additionally, only about 56 percent of freshmen complete a degree after six years. This means that students who do stay at the University more than four years will have to pay the noncompact rate eventually, which could possibly cost a great deal more than they are used to.
Over the past six years, the cost of tuition at the University has almost tripled from $77.75 per credit hour to $229.25 per credit hour. Instead of coming up with new gimmicks to disguise tuition increases as savings, the University needs to solve the problem of out of control tuition costs.
— Peter Soto for the Kansan editorial board
Editorial: Proposed tuition freeze bests four-year compact
The tuition compact doesn't save money; rather, it helps students predict long-run ...
Editorial: Struggling economy creates need for affordable ...
Tuition compact stays put, while states make budget cuts.
KU proposes tuition increase for 2010-2011 school ...
About 45 percent of students will see no increase in tuition rates.
Prof. salaries cause of proposed tuition increase
Sophomores will not be affected by the change, but others may experience ...
Tuition compact approved
Plan will guarantee frozen four-year tuition for incoming freshmen.
Regents vote to increase tuition
The increase will make it possible for the University to keep the ...
Editorial: KU is a great value but ...
The University was listed on The Princeton Review's Top 100 Best-Valued colleges ...
Regents vote for fixed tuition
The Kansas Board of Regents moved one step closer to giving students ...
Regents approve tuition hike, technology fee
State now pays less for education than the University's students.
Career fair underscores importance of choosing a ...
Student Academic Services encourages students to graduate in four years and avoid ...
Members of the Kansas Board of Regents ...
Freshmen tuition increased 5.8 percent from last year.
Inflation catches up with state funding
Students have to pay more for education as tuition rates rise.
Board of Regents to determine tuition
Their decision will affect the four-year tution freeze compact offered to incoming ...
Princeton Review names KU a ‘Best Value ...
The title is awarded to universities based on academics, cost, financial aid, ...
New bill eases college costs
President Bush signed a new bill on Thursday that will relieve students ...
Budget reduction expected to raise tuition
Students covered by the University's tuition compact will not be affected, but ...
Students become more dependant on loans
Most current students don’t consider post-graduation income when borrowing money for college.
Chambers: Tuition cuts will devalue degrees
The University of Kansas' tuition increases are in place for a good ...
Taking an extra lap
What's preventing students from completing their majors on time?
Editorial: State budget freeze raises concerns
Gov. Mark Parkinson needs to keep his promise and stop cut higher ...
Regents finalize tuition increase
Students will pay $306 more each semester.
Tuition increase coming this fall
Kansas Board of Regents approved a state-wide increase on public university tuition.
Balancing act
Students prove that attending class and working a job on the side ...
Regents proposal would freeze tuition
The plan could cause problems for the University’s four-year tuition compact.
Holmes: Students regain focus
Political activism is important for those attending college.
Brinker: The root of the problem
The issue of class is once again at the forefront of the ...
Editorial: Tuition increase mishandled
The proposed tuition increase leaves students' best interests behind
Senate Notebook
Full Senate met last night and voted on several pieces of legislation, ...
Lytton: Women pay price for biased insurance ...
Practice of gender rating makes women dig deeper into their pockets for ...
‘Generation Debt’ afflicting students
KU students are finding it difficult to foot the bill of increasing ...
Course fees continue to increase
Students already hit hard by the economic downturn are being charged more ...
Regents propose $10 million in new financial ...
The program is a reaction to dramatic tuition increases and a lack ...
Input on fees sought
Tuition bills increase; wallets shrink
Wilson: Excessive meal plans, fees cause unfair ...
Why spend money on things you won't use?
Leaving a lasting legacy
As Hemenway prepares to retire, he and others look back at how ...
Medical school remains goal for many
KU students continue to apply in large numbers despite high cost of ...
Study: Textbook prices outpace inflation
The Government Accountability Office estimates students at four-year universities will spend more ...
Quality education, not athletic victories, has increased ...
Officials say that high academic standards and affordable prices are the reason ...
Editorial: Recommendations are solid, if they come ...
Chancellor Bernadette Gray-Little's task force on graduation and retention needs more than ...
Kansas Jayhawk fans hold aloft a reproduction of ...
2 comments
Erin Saupe, a Ph.D. student from St. Cloud, ...
1 comment
0 comments
Armed robbers continue to threaten.
3 comments
Lecture from Greg Mortenson, co-author of New York ...
0 comments
KUnited presidential candidate Libby Johnson and vice presidential ...
1 comment
Comments
Tuition compact will not benefit the university
Its "Damned if you do and damned if you don't." Those who buy into the tuition compact should do so because they want the predictability factor, not because they think it will save them money. That predictability is a huge benefit to some families as they budget for education. Whether or not it will actually save money in the long run is just a gamble.
Tuition compact will not benefit the university
The University isn't advertising compact tuition as a money saver: http://www.tuition.ku.edu/faq.shtml#save
I'm not sure of the stance of this editorial board: First you are pro semi-unrestrained University spending (i.e. "The tuition compact does not give the University the flexibility to address economic concerns during times of economic hardship and economic boom") and then you are pro-students saying they will carry an unnecessary economic burden.
The tuition compact is in Year 2 now, so I don't know if this is news anymore. The real story here is why other Kansas universities don't have compact tuition (Is something wrong with it that we don't know about?). And why does it takes so damn long for someone to get out of KU?!?!
Tuition compact will not benefit the university
Other schools do not have compact tuition because they simply do not want it. The KSU admin has approached their students a few times about it and they have turned it down each time. I think they might have even had a referendum about it, but I am not very sure.
As for the other Regents schools...most have laughed at the idea. If you want to know why just look at the tuition rate at those schools. FHSU has not even crossed the $100 per credit hour mark and ESU might not be there yet either. So the tuition increases have not been as hard hitting at many other schools.
The tuition compact was the best option for many to ensure funds increased and public anger over tuition increases decreased. If you want to know the problems with the system just look at how it works. The only reason this system is viable is that there are a great number of students that do not complete their degrees in 4 years at KU. The costs are front loaded to the first two years...also the time when students are most likely to discontinue their KU education. So this allows the university to collect money at a higher rate and then not need to carry the burden of the lower rate of return they feel on the jr and sr. year. All in all, those of you in the compact need to thank those who drop out for making your costs lower. In addition, should the student extend their stay to a fifth year...well they will collect on average about $1000 per semester above that student's compact rate.
I think what the editorial board/author of this article fails to realize is that the compact is not a binding contract. If for some reason the admin needed money fast they are not bound to the compact. The admin could simply go to the Board of Regents and ask for the increase. The compact is only as solid as the benefit it provides the university. If at anytime it becomes impossible to project tuition 4 years out and then charge that rate for 4 years...the compact will most likely vanish. As for now the disguised tuition increase remains the best policy option in a climate that is sensitive to massive tuition increases.
Sign in to comment
Or login with:
OpenID