The Michigan State University Board of Trustees approved a 4.5% tuition increase for in-state undergraduate students on June 13, citing long-term financial challenges and federal funding cuts as key factors behind the decision.
President Kevin Guskiewicz acknowledged the hardship the hike could pose for students and families but said it was part of a broader effort to stabilize the university’s finances.
“Our primary budgetary pressures come not just from changes occurring at the federal government, but from existing structural deficits that must be addressed,” he said during the board meeting held in Traverse City.
Sandy Pierce, chair of the Board of Trustees’ Committee on Budget and Finance said the increase falls within the tuition cap set by state lawmakers. If the final legislative cap comes in lower, MSU’s rate will be reduced to comply. Pierce emphasized the board’s effort to strike a balance between affordability and maintaining MSU’s academic strength.
“We carefully consider tuition rates as part of our responsibility to balance access, affordability and ensure the resources that are necessary to support MSU’s mission as a world-class research institution,” Pierce said. “It’s important to note that over the past 10 years, MSU has held tuition rate increases to the lowest level of all Michigan public universities, and MSU has consistently increased university-funded financial aid … which has grown an average of 7 to 8% annually, far outpacing any tuition increases”.
The 4.5% tuition hike equates to roughly $798 more per academic year for resident undergraduates. About a third of the additional revenue—estimated between $10 to $12 million—will be directed to financial aid.
Trustees emphasized their intent to keep student debt manageable. Trustee Mike Balow noted that the average debt for in-state undergraduates who took out loans remains around $26,000, below the national average.
“We’re not graduating students with debt burdens that are not sustainable,” he said.
The tuition increase comes as MSU implements a 9% cut to its general fund over the next two years—6% in the upcoming fiscal year and 3% the following year. Guskiewicz said his own office will absorb the full 9% cut immediately.
“Administrative units and colleges submitted their budget plans last week, and what we’re seeing includes proposed cuts to things like external contracts, hiring, travel allotments and other budget areas before looking at employment considerations,” Guskiewicz said
