EAST LANSING, Mich. - The Michigan State University Board of Trustees on Friday extended the Tuition Guarantee, the university's commitment to keeping tuition increases at or below the rate of inflation for incoming Michigan resident freshmen.
Under budget guidelines approved by the Board, undergraduate tuition will rise only 3.5 percent for the 2000-01 year. The Board's action reaffirms the university's promise to keep high-quality higher education accessible and affordable. At the same time, the Board also voted to increase the university's financial aid budget by 3.5 percent.
"The MSU Tuition Guarantee continues," MSU President Peter McPherson said. "In 1994, we set a standard for keeping tuition increases in check, and the university remains committed to that standard.
"We're promising incoming freshman that their tuition will increase no more than the approximate rate of inflation during the four years it should take them to graduate, provided that we receive inflation-adjusted support from the state and that the Michigan legislature makes substantial progress toward closing the per-student funding gap among Research I universities in the state."
The 3.5 percent tuition increase was determined by the Board after being informed that the Consumer Price Index (CPI) increased by 4.1 percent in the first quarter of 2000, and about the possibility of further increases of interest rates by the Federal Reserve Board. Other evidence of inflation was noted, such as recent gasoline price increases.
MSU's 2000-01 per-student appropriation support of $8,100 falls substantially below the existing legislatively established funding floor of $9,000 per student for Research I universities in Michigan.
Under the plan adopted by the Board, lower division undergraduate students - typically freshmen and sophomores - will pay $152.25 per credit. Upper division undergraduates will pay $169.75 per credit.
Tuition will rise 3.5 percent for graduate students, as well. Graduate assistant stipends and wages for students who work on campus will be raised 3 percent.
The final university budget will be established for consideration by the board in July.
TUITION INCREASES
Following are undergraduate tuition increases approved by MSU Board of Trustees since the 1994-95 fiscal year.
FY
1994-1995 3.5 percent
1995-1996 2.6 percent*
1996-1997 2.9 percent*
1997-1998 2.9 percent*
1998-1999 2.3 percent*
1999-2000 2.3 percent*
2000-2001 3.5 percent*
*Enacted as part of the MSU Tuition Guarantee