Countrywide tuition increases vary by region

Tuition costs have gone up an average of 10.5 percent at public universities nationwide since the 2003-04 academic year, according to a report released last week by the College Board.

At private universities and two-year colleges, tuition rose an average of 6 percent and 8.7 percent, respectively.

Sandy Baum, senior policy analyst at the College Board and economics professor at Skidmore College, cited a variety of reasons for the upward trend.

"One significant factor in the public sector is state appropriations have declined," she said. "Some fraction of these lost funds must be replaced through tuition."

Baum also blamed rising health care costs, better amenities and new expensive technology for raising the cost at public universities.

She said higher tuition costs also increase the amount of financial aid, which in turn necessitates higher tuition to pay for the aid.

"It's a vicious cycle," she said.

The cost of tuition varies by region, Baum said.

The Southwest has relatively low fees but has experienced a rapid increase in tuition costs.

But in the Northeast, where students see the highest fees, universities have had a slow rate of increase.

George Leef, director of the John William Pope Center for Higher Education Policy, said tuition in North Carolina is relatively low compared to that at the University of Vermont, which charges in-state students more than $8,500.

He said the recent spike is due to North Carolina's yearly budget crunches, which have caused the University to rely more on students and less on the N.C. General Assembly for financial support.

Leef said that if the state's financial situation improves, there could be less pressure on UNC-Chapel Hill.

Jeff Davies, UNC-system vice president for finance, said money garnered through measures initiated by the UNC-system Board of Governors goes toward the state's general fund for higher education.

But the board did not approve a systemwide tuition increase last year. The BOG, which started to consider tuition earlier this month, will make its final decisions on the subject for the 2005-06 academic year in spring.

Campus-initiated increases, on the other hand, go toward educational improvements such as faculty salaries, student services and smaller class sizes.

When compared to the rest of the country, Davies said, the UNC system is doing well.

Financial aid has risen along with tuition costs, and students are graduating with less debt than they have faced in the past.

"We are in good shape," he said. "The amount of money that has been set aside for financial aid in the state is substantial."

Leef said rising tuition often doesn't hurt middle-income families because they can borrow money at low interest rates and pay it back in the future.

"I don't think that there is any great number of people who cannot go to college or must drop out due to the cost," he said.

While middle-income families are not necessarily hurt by higher tuition, Baum said, lower-income families are affected.

"For lower-income families, the problem is the shift of financial aid away from them toward higher- and mid-income families," she said.

Baum said these families are dependent on Pell Grants, which have not increased in recent years.

Although nationwide tuition costs are generally on the rise, Baum said the rate of increase should slow down.

"It just can't continue to rise at this rate without people having significant resistance."

Contact the State & National Editor at stntdesk@unc.edu.