Cost of Public Universities Jumps 9.6 Percent

Tuition and fees at four-year private institutions increased an average of 5.8 percent, while costs at two-year schools went up by 7.9 percent.

But a record $90 billion was available in student financial aid in 2001-02. Grant aid increased more than loan aid for the second consecutive year.

At four-year public schools, average tuition and fees for 2002-03 totaled $4,081, an increase of $356 over the 2001-02 total of $3,725.

Average tuition and fees for the 2002-03 school year at four-year private institutions is $18,273, an increase of $1,001 over 2001-02's total of $17,272.

In contrast to the national results, tuition at UNC-Chapel Hill for the 2002-03 school year increased by about 20 percent.

The University's tuition increase, as well as increases at the 16 UNC-system campuses, can be attributed to officials' desire to allow the schools to provide the best possible education for students, said Jeff Davies, UNC-system vice president for finance.

"We have seen substantial increases in tuition and fees in response to the desire of campuses to be excellent and provide services (combined with) the state's inability to provide for needs because of the economy."

At UNC-CH's peer institutions, tuition increases were not as substantial.

The University of Virginia increased tuition 8.8 percent for in-state residents and 8.5 percent for out-of-state students.

Tuition had been frozen in Virginia for six years. But the new change in rates might be followed by a midyear hike as well, said Louise Dudley, vice president for university relations.

The University of Maryland-College Park and the University of Texas system were both well below the national average, though they still had increases.

UM-College Park students face an in-state increase of 5.5 percent and a 7.5 percent increase for nonresidents -- results of an economic downturn and state budget cuts. The cuts leave fewer funds to appropriate for higher education, said John Blair, UM-College Park director of the Department of Budget and Fiscal Analysis.

In Texas, tuition is determined by the state and increases are set for $2 per semester credit hour through at least 2006. This averages out to a 4.8 percent increase, said Randy Wallace, assistant vice chancellor and controller of the budget office.

Private schools saw an average increase of 5.8 percent. Duke University was slightly below the national average with a 4.4 percent increase in tuition and fees.

Tuition increased as a result of the national economic crisis and declining state revenues, said Paul Hassen, assistant director of public affairs for the American Council on Education.

States are being severely impacted and as a result are cutting higher education funding, he said.

"Colleges are getting a squeeze on all sides," Hassen said. He added the need for additional funds outpaces the growth of endowments because of the poor state of the economy.

Mark Kantrowitz, creator of FinAid.org, a popular student financial aid Web site, said the news was no surprise to him. He said tuition rates usually will increase at about twice the general inflation rate.

Kantrowitz, who studies trends in college pricing, said his research shows that a baby born today will pay 3.6 times the amount current college students pay.

But officials said that while universities cannot control the amount appropriated to them by the state, many can control tuition costs. Hassen said, "Increasing tuition brings relief, though it is a decision made reluctantly."

The State & National Editor can be reached at stntdesk@unc.edu.