UM Regents Increase Tuition 1.9% for 2020-2021

Submitted by VCavman24 on June 30th, 2020 at 12:40 AM

After rejecting a tuition increase (and budget) on a 4-4 vote a few days ago, the Michigan Board of Regents approved a budget and a 1.9% tuition increase today on a 5-2 vote.  The 1.9% increase is the same as the proposed increase that was rejected a few days ago, but the approved budget is slightly different than the rejected proposed budget.

https://www.detroitnews.com/story/news/local/michigan/2020/06/29/um-approves-budget-including-tuition-hike-2021/3282507001/

UM-Dearborn also is increasing tuition 1.9% and UM-Flint is increasing tuition 3.9%.  For comparison, Michigan State, Central Michigan, Western Michigan, Eastern Michigan, Wayne State, Oakland, and Saginaw Valley State are all freezing tuition for the next year.  Michigan Tech is increasing tuition 3%.

UM is also instituting a controversial $50 per semester COVID-19 fee.  Voting for the increase were Regents Jordan Acker (D-Huntington Woods), Michael Behm (D-Grand Blanc), Mark Bernstein (D-Ann Arbor), Paul Brown (D-Ann Arbor), and Ron Weiser (R-Ann Arbor).  Voting against the increase were regents Shauna Ryder Diggs (D-Grosse Pointe) and Denise Ilitch (D-Bingham Farms).  Regent Katherine White (D-Ann Arbor) was absent from the meeting.  Acker and Brown switched their vote from opposing the previous proposal to approving the new budget.  White voted to approve previously.

Special Agent Utah

June 30th, 2020 at 12:51 AM ^

I know there are probably all kinds of logical financial reasons why they can justify increasing tuition, in part because of monetary hits they’ve suffered from the virus. 

But, I’m sorry; from an optics and PR standpoint, damn, does this ever look bad. 

Bo Harbaugh

June 30th, 2020 at 10:58 AM ^

Agree NJ,

Just another system’s flaws/ need for change being illuminated by the Covid crisis.  One would think / hope that a university ranking in the top 10 in endowment funds could put freeze tuition increases for a year (or even a semester) until the health crisis and economic fallout from it get sorted out.

And as others have mentioned, the campus experience (in person classes /learning, socialization with peers, campus activities, and sports) aren’t expected to be what they once were.  

Mitch Cumstein

June 30th, 2020 at 8:21 AM ^

I don’t think it’s poor form Bc of the student/family hardship perspective (although this is a general concern), my issue is more that by most accounts the C19 adapted semester will be an inferior educational product. The school is essentially asking students to pay more for less value. While students obviously have options (transfer, gap year, etc) there are monetary and emotional barriers to these options and this feels like the board is squeezing captive students (their customers) bc of their own budget issues.  Pretty shitty move in my opinion. 

Honestly, the older I get the less enamored I am with the institution. When I was a recent grad I’d fall all over myself to defend anything the U did. Now, I can see more clearly this is an institution that continually puts their own interests and the brand above the mission. 

EMBA21

June 30th, 2020 at 9:06 AM ^

Definitely agree. Ross decided to eliminate clubs, because not all accepted students could attend them. The dean eventually corrected that to make it part remote.part in person club activities.

For Ross students, classes are 1/3 of the experience and those have lost a lot of luster.  Clubs & networking have really made a lot of the reg MBA class wonder about why the admin seems less concerned about their experience than about their $ intake.

Smells.Like.Victory

June 30th, 2020 at 9:49 AM ^

My Son is taking a 'gap' year from College - and I know others that are doing the same thing. He has an internship lined up that he can do remotely for the year. I realize that most don't have the options to do this and I do feel bad for those that are facing this with school age children and especially those that have to also rely on daycare because of work.

Wendyk5

June 30th, 2020 at 10:48 AM ^

I've been wondering about the students who take gap years. My daughter is a senior in high school this year, so how will that affect acceptance rates next year? Will the incoming freshman classes just be that much bigger in 2021, to accommodate the gap kids and the incoming freshman class? They're still graduating the seniors so I would imagine that they'll need to make up for the loss of those gap year kids by bringing them in as well as a regular-sized freshman class. Any insights? 

LewisBullox

June 30th, 2020 at 10:32 AM ^

Easy for you to say that as an internet stranger without any detailed knowledge of what you're talking about other than it sounds good. And of course you're not considering the human aspect of it. Just be glad you don't make important decisions.

Walter Rupp

June 30th, 2020 at 11:07 AM ^

Terrible optics, especially for a product that would appear to be LESS than optimal. But the 1.9% increase only translates to $300 increase/year for Michigan residents ($17K/year tuition) vs. $1,000/year for non-residents ($55K/year).  That's not likely a hardship for the family who is actually paying full tuition in the first place, since family incomes under $120K/year are already getting assistance, or a full ride.  And if you're a Michigan resident, stop your bitching. The disparity to the OOS rate is appalling and has served to swell the coffers for the very lackluster contribution from the state (which once was the justification for having an out of state rate).  Some of this increase can also be attributed to the drop in International Student attendance which also pays at full OOS tuition rates. So the next time some xenophobic a-hole looks to disparage the high % of international students at their respective institution, consider the financial contributions coming from these cultures and maybe say "thank you."

L'Carpetron Do…

June 30th, 2020 at 11:46 AM ^

An extra $300 or $1000/year is a lot considering the tuition is already $17/$55K(!!!) a year.  I really don't think U of M is worth that kind of money. It appears to the rest of us that there is a lot of bloat and mismanagement going on. Not to mention there is a big fat endowment that apparently the university can't touch even in times of crisis. If we can't use it now, what the hell do we have it for?

Keep in mind: it will take those students YEARS, likely well over a decade  to pay off those amounts. The fact remains that those high paying jobs are just not out there for recent graduates (or even mid-level professionals). 

College tuition is out of control and sadly Michigan has not been a leader on this issue, and certainly has not been the best.

Walter Rupp

June 30th, 2020 at 2:19 PM ^

$300 is a lot, or $17K/year?  Keep in perspective that no one has to attend U of M, it's a choice and there's plenty of competing options out there.  It's also a life choice, not a matter of something you can price compare on first review, but an accumulation of experiences and interactions that serve some quite well.  Moreover, for the level of study and quality of exposure that a student can have at UofM relative to other thriftier campuses who may not have an nuclear reactor or equivalent wind tunnel or sub-atomic microscope, or pulitzer prize poet,... nicer things cost more money.  And sadly, the "state" part of our university has done little to sustain the quality of our school.

 

L'Carpetron Do…

June 30th, 2020 at 2:49 PM ^

Ugh this is the worst take: we're a prestigious institution so we have the right to be as stupid and wasteful as we want and if you don't like it YOU CAN GET OUT! By that logic, why stop at those amounts? Why not charge a million a semester because the UM experience is so superior to every other institution? At what point do the costs become ridiculous? At point does it become overpriced?

$17K and $55K are a lot and should be enough to run a university in 2020/1. The university has an obligation to the state, taxpayers and students to control costs and offer an affordable education, no matter how prestigious it thinks it is. But they seem to think they have no obligation to do so. 

True Blue Grit

June 30th, 2020 at 8:52 AM ^

Yup, as the old saying goes, this announcement probably went over about as well as a fart in the middle of church.  As Mitch says below, no one will want to pay more for what is likely to be a diminished educational product due to the covid 19 situation.  

bluebyyou

June 30th, 2020 at 6:45 AM ^

Endowment money is typically allocated towards specific items and is not freely available for use as a university pleases.

State funding will be down to be sure but it hadn't been very significant in recent years in any event. 

The dollar amounts for the increase are:

Tuition for the most common lower-division rate will increase by $290, for an annual rate of $15,520 for in-state students and by $966, for an annual rate of $51,838 for nonresident students. 

The cost of education continues to spiral out of control.

 

Hail-Storm

June 30th, 2020 at 10:07 AM ^

Yeah, what frustrates me is that during all the massive fundraising they did, they could have made a provision that a certain percentage of all gifts or donations have to be earmarked for tuition. As others have stated, it is unfortunate that such a rich University does little to make the cost of attending affordable for the public. In state tuition and room and board appear to be $100,000 for 4 years.  That is a huge deficit to put college grads in to become successful.

J.

June 30th, 2020 at 10:37 AM ^

As others have stated, it is unfortunate that such a rich University does little to make the cost of attending affordable for the public

What, like the plan where they give a full scholarship to in-state students if their household income is less than $65K and they have less than $50K in assets?

The price of education follows the law of supply and demand, like everything else.  With the increasing belief that college is an absolute requirement for success in life, and the numerous grants, savings plans, and loans available, the nominal price will continue to rise indefinitely.  The actual price, which differs for everyone, is carefully set to extract as much money as possible from each student.

If you want the price of education to fall, eliminate all financial aid programs and government subsidized loans; if you want it to fall even more, ban the use of borrowed money entirely, so that the applicant must show sufficient income and/or assets to pay for the entire cost without a loan.

We choose not to do these things, and for very good societal reasons -- but understand that the price of education is arbitrary and not related in the slightest to the cost of delivering that education.