Stimulus helps UVa limit in-state tuition increase

Tuition and fees at the University of Virginia will rise less than anticipated next year for in-state students, thanks to a multimillion-dollar windfall from the federal economic stimulus package.

UVa’s Board of Visitors voted unanimously Tuesday to raise in-state undergraduate tuition and fees by $372 — or 4 percent — bringing the annual tuition and fee costs to $9,672.

Undergraduate students from outside Virginia will pay $2,072 more in annual tuition and fees, a 7 percent jump over the current academic year. Their total tuition and fees next year will tally $31,672.

UVa had planned to raise next year’s in-state tuition by upward of 9 percent, but opted to limit the increase after it learned it was receiving $10.7 million from the American Reinvestment and Recovery Act of 2009 to help mitigate in-state tuition increases over the next two years.

“The economic stimulus money allowed us to cut our in-state tuition and fee increase by half,” said Leonard W. Sandridge, UVa’s executive vice president and chief operating officer.

UVa Board of Visitors member Alan A. Diamonstein said the economic stimulus package is providing a much-needed boost to help make higher education a bit more affordable.

“It’s what I consider a very appropriate use of the stimulus funds,” he said. “It’s clear [UVa] has done everything that can be done to keep any increase to the barest minimum possible.”

While next year’s in-state tuition and fee increase is more modest than originally expected, it still comes after several consecutive years of sizable jumps.

Over the past five years, annual in-state annual tuition and fees at UVa rose from $7,180 in 2005-06 to $9,672 in 2009-10, a 34.7 percent increase.

Out-of-state tuition and fees grew from $24,100 to $31,672 during the same period, a 31.4 percent increase.

One-third of next year’s tuition and fee increase was deemed necessary to cover costs of a rapidly rising demand for financial aid among UVa students. The economic downtown has led to many more students needing help under the university’s financial aid program called AccessUVa, Sandridge said.

“We’re experiencing increases in those students who will apply for and receive financial aid,” he said.

Since AccessUVa was established in February 2004, the initiative’s budget has grown from $20 million in its first year to $63 million in the current academic year. UVa’s financial aid budget is expected to increase by another $10 million in the coming year.

Also contributing to UVa’s rising tuition and fees are the skyrocketing costs of health insurance and utilities, as well as operating costs for a handful of new buildings, such the College and Graduate School of Arts & Sciences’ South Lawn project and the Curry School of Education’s Bavaro Hall.

UVa Rector W. Heywood Fralin pointed out that UVa has made deep cuts in spending amid the state’s difficult fiscal situation. “There has already been a lot of pain prior to the need for an increase of tuition and fees,” he said.

Higher education institutions across Virginia are beginning to approve similar tuition and fee increases for next academic year. The College of William & Mary’s Board of Visitors is scheduled to meet on the issue later this week. Virginia Tech has not yet set a date to consider next year’s tuition rates.

Sandridge said he expects other institutions around Virginia to increase tuition and fees for in-state undergrads by around 5 percent.

Tuition rates at Piedmont Virginia Community College are set by the State Board for Community Colleges, which is scheduled to meet May 21. PVCC spokeswoman Anita Showers said it is unclear whether the board will increase next year’s tuition and fees.

Tuition for out-of-state undergraduate students is rising at a higher rate than in-state students because of a decision earlier this year by the General Assembly to increase the out-of-state capital fee from $2 per credit hour to $10. For a full-time out-of-state student, the General Assembly’s action requires them to pay $244 more. The money helps pay for the Virginia College Building Authority Debt Service, which provides financing for capital projects at Virginia’s colleges and universities.

UVa’s board also approved a 5.1 percent increase in the cost of undergraduate housing, as well as a 5.4 percent increase for the university’s meal plans.

Tuition and fees for in-state graduate students will increase by $495, or 4.1 percent, to $12,634. Out-of-state grad students will pay $495 more, or 2.2 percent, for a total cost of $22,635.

In-state tuition and fees at UVa’s Darden School of Business will rise by $3,000, or 7.4 percent, to $43,500; out-of-state tuition and fees will increase by $3,000, or 6.6 percent, to $48,500.

UVa School of Law tuition and fees for in-state students will rise by $2,000, or 5.4 percent, to $38,800. Out-of-state tuition and fees will increase by $2,000, or 4.8 percent, to $43,800.

UVa School of Medicine tuition and fees for continuing in-state students will rise by $1,750, or 5.4 percent, to $34,400. Out-of-state continuing students will pay $1,750 more, an increase of 4.1 percent, for a total $44,400. Entering students, whether from Virginia or elsewhere, will pay an additional $750.