Rollout of price study sees delays

Members of the University's governing board were expecting Thursday morning to learn how tuition increases, similar to the landmark proposal they passed last year, impact enrollment.

But the price sensitivity study that could significantly alter the course of action for future tuition talks didn't even make an appearance.

"The schedule was too optimistic; it was just too fast," said Jerry Lucido, vice provost for admissions and enrollment management. "We could have provided a broad statement about the methodology if it was necessary, but no one would have wanted that."

While hundreds of interviews have been conducted and the data-collecting period is complete, officials said, tuition statistics are still being calculated.

Officials expect the study, conducted by higher education consulting firm Art & Science Group LLC, to be ready for discussion by the board's November meeting.

"A lot will depend on the results of the study," said Richard "Stick" Williams, chairman of the BOT. "If the study suggests that there is not a whole lot of wiggle room, then it certainly will affect if we ought to consider it."

The tuition price sensitivity study will provide officials with a two-sided look at the effects of such increases.

One aspect of the study will show how the cost of education affects potential students' decisions to apply to the University. The second analyzes the decision-making process admitted students use when deciding which university to attend.

"We did not want to do a live experiment with the tuition increases, so we are studying what happens with the market-based approach, what the effects are," Lucido said.

This year, in-state students are paying $3,205 and out-of-state students are paying $16,303 for tuition. These rates reflect last year's increases of $250 for in-state students and $1,500 for out-of-state students.

When trustees approved the increases last January, they also passed a philosophy to guide future tuition discussions.

The philosophy calls for tuition for in-state students to remain both accessible and affordable. To accomplish this goal, tuition rates should remain in the lowest quartile of a range determined by evaluating tuition at public peer universities.

The top reason admitted students decided not to attend UNC last year was because they were not offered merit scholarships, according to statistics presented during Thursday's meeting.

Of the students who listed the lack of merit scholarships as their top reason for not enrolling, 46 percent were residents and 54 percent were nonresidents. The students, whose average SAT score was 1381, included 220 valedictorians and salutatorians.

"We don't bargain; it is not the way we think," said Stephen Farmer, director of undergraduate admissions.

"But to attract the top students, merit scholarships can make the difference."

Contact the University Editor at udesk@unc.edu.