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Hikes' Effects on Financial Aid Outlined

But they say the proposals passed by the UNC-system Board of Governors on Wednesday are unprecedented and might unfairly redistribute UNC-Chapel Hill students' money to other system schools.

The possible tuition plan, passed by the BOG on Wednesday, raises tuition at all 16 campuses by 8 percent for in-state students and by 12 percent for out-of-state students.

The BOG also passed a campus-initiated $300 increase for UNC-CH. The UNC-CH Board of Trustees originally had recommended a $400 increase.

The BOG's proposals must pass the N.C. General Assembly before going into effect.

With the systemwide tuition increase, the campus-based increase and a possible increase of $63.10 in student fees, in-state students could be paying as much as 18 percent more in tuition and fees next year, officials said Thursday.

In-state undergraduate students could pay a total of $549.10 more in tuition and fees. These same proposed increases will raise tuition by 14 percent for out-of-state undergraduates, a total increase of $1,841.10, said Shirley Ort, director of scholarships and student aid.

Ort said the proposed tuition increase will also affect graduate student tuition. In-state graduate students' tuition will increase 17 percent, translating into a $564 increase. Out-of-state graduate students' tuition will raise by 14 percent for a total of $1,902 more than before.

Ort said her office will hold harmless all students qualifying for need-based aid in paying for the $300 tuition increase because 40 percent of the funds will still go to financial aid."We're going to cover all of that campus-based tuition increase, whether it's at the 300 level or whether it would have been at the 400 level," she said.

But Ort said she is less sure that students would not face increased costs as a result of the systemwide increase. Like the $300 campus-initiated increase, money raised from the systemwide increase partly will fund financial aid.

But Ort said there is no guarantee that the systemwide increase revenue will directly benefit UNC-CH students because that money is not distributed through UNC's Office of Scholarships and Student Aid but by the N.C. Educational Assistance Authority.

UNC-CH administrators have said the $300 campus-based tuition increase will be used to fund financial aid, increase faculty salaries, improve faculty-student ratios and boost graduate student stipends.

Provost Robert Shelton said funding priorities outlined in the $400 campus-initiated tuition request will be given money proportionately.

Only $3.5 million of the $9.1 million raised by UNC-CH from the systemwide tuition increase, which will in part fund enrollment growth at the system's 16 campuses, will be allocated back to UNC-CH, Ort said.

Shelton said the state legislature can collect state tax dollars and distribute them to different UNC-system schools but that the systemwide increase directly takes money students pay for tuition at one school and uses it at another school in the system.

As a result of the board's actions, UNC-CH could suffer a $5.8 million net loss if the legislature approves the systemwide increase, he said.

"This is totally unprecedented," he said. "Always before, enrollment increase has been funded by the General Assembly."

The University Editor can be reached at udesk@unc.edu.

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