The MSU Board of Trustees approved a tuition hike that includes a 13.5 percent increase for new students and a 9.3 percent raise for returning students for the 2005-06 academic school year.
MSU's Director of Financial Aid Rick Shipman said he believes the board set a precedent by establishing the two different tuition hikes, instead of a blanket rate increase.
MSU President Lou Anna K. Simon said the lower rate for returning students was established as an incentive to maintain retention and graduation rates.
"We wanted to recognize returning students who are already committed to MSU, and we want very much for them to graduate," Simon said. "New students still have a choice to make."
Tuition at MSU was $206.25 per credit hour for in-state freshman and sophomore students for the 2004-05 academic year. With the 9.3 percent increase, tuition will now be $225.43 per credit hour for returning undergraduate students.
Journalism junior Nicole Briese said she's happy her tuition won't be as steep as incoming freshmen, but she said she'll have to take out larger loans to pay for school next year.
"It's getting more and more expensive," she said. "It's obviously unfortunate because it's going to deter a lot of students from going to school."
Trustee Colleen McNamara said the increases were necessary to maintain the university's quality of education but acknowledged that some students will have to take on additional jobs to pay for tuition.
"It's important that they get something for all that they've sacrificed," she said. "We've really made the best of a bad situation."
Simon said the university will continue to tighten the budget and to avoid increasing MSU's student-teacher ratio.
"We've already changed the shape of MSU, and if we continue to change the shape of MSU, it could potentially change the quality of the university," Simon said.
In 2003, the board approved a 9.9 percent tuition increase for 2003-04 year.
Under a tuition-restraint program in the 1990s, led by former MSU President M. Peter McPherson, MSU held tuition increases below 3 percent for seven years, and its tuition increased by only 2.4 percent last year.
As of Aug. 12, MSU was still unsure of how much money it will receive from the state for the 2005-06 school year. University officials have said the best budget formula for MSU would be the plan approved by the Michigan House of Representatives, which would give the university about $287 million for the 2005-06 fiscal year. Last year, MSU received $285.2 million in funding.
Robert Murphy, ASMSU Academic Assembly chairperson, MSU's undergraduate student government, said it's never easy for students to deal with tuition increases.
"Given the state of Michigan's treacherous failure to fund Michigan universities, I don't see any other way," he said.
The increase also includes a 15 percent raise in financial aid, which will bring an additional $6.4 million to students receiving it. This includes $5.4 million in additional regular financial aid, plus another $1 million for students just above the eligibility for Pell Grants.
Shipman said every student, regardless of their financial aid status, will be given some monetary assistance from the university.
