Nonresidents want place at table

A gentle force, Renan Snowden might have swayed some members of the University’s governing board Wednesday.

Snowden, a senior from Washington, D.C., presented her perspective on the effects of successive tuition hikes on out-of-state students and the middle class.

“When I look at the daunting disparity between the proposed increases for residents and nonresidents, I’m relieved that I don’t have to worry about affording another year at Carolina,” she told members of the Board of Trustees’ Audit and Finance Committee.

Though Snowden receives a grant tailored to Washington, D.C., residents attending public institutions, the overall cost of her tuition remains higher than the $3,205 in-state students paid in 2004-05.

Her concerns have been echoed by out-of-state students looking at a potential increase of $1,200 for the coming year — on top of the $16,303 they already pay.

And it appears that their worries haven’t fallen on deaf ears. During today’s meeting, the committee approved a recommendation for a $1,000 increase for nonresidents — a hike brought down by $200 after members heard Snowden’s testimony.

The full board will vote today on the proposal, which includes a $250 tuition increase for in-state students.

“I don’t feel we are going to do any significant damage to the quality of the incoming class,” Trustee Paul Fulton said.

But successive tuition hikes that have hit nonresidents particularly hard leave out-of-state students wondering about the University’s commitment to them. Out-of-state students have begun to refer to themselves as commodities, cash cows and tuition targets, said Charlie Anderson, speaker of Student Congress and an N.C. resident.

With job losses and pay cuts plaguing the middle class, the prospect of higher tuition proves daunting — especially when a family does not qualify for need-based aid.

“There’s a real crunch for people in the middle,” said Judith Wegner, chairwoman of the faculty.

A study conducted by the Art & Science Group LLC and released last semester used a market-based strategy to discern how tuition increases affect potential UNC students.

The study found that the University can implement moderate hikes relative to those passed by its competitors — but the price of these increases will be much higher for out-of-state students.

Jerry Lucido, vice provost for enrollment management, advised members of the finance committee to decide with caution.

“We are right on the line for out-of-state students,” he said.

Though the tuition increases have short-term effects, the message they send will follow out-of-state students beyond graduation, Snowden said.

“We may not be native North Carolinians, but we are outstanding scholars, athletes and leaders who love Carolina all the more because we realize how a place like this is not just your average state school,” she said.

Chancellor James Moeser stressed Wednesday that the University truly values the work and commitment of the school’s 18 percent nonresident population. “It pains me that this is the message that is being received,” he said.

The Art & Science study also found that if the University “adapts a generous program of grants for low- and middle-income North Carolinians, it will be able to raise in-state price relative to in-state competitors.”

Shirley Ort, who helped create the Carolina Covenant, a program that currently provides aid to 225 students from low-income families, said there are other options for the middle class.

Unsubsidized Federal Stafford Loans, which can be paid back, with interest, provide a good resource for families in this group, said Ort, the University’s director of scholarships and student aid.

During college, undergraduates can borrow up to $23,000 in unsubsidized loans, though interest does accrue from the moment a student takes out a Federal Stafford Loan.

“I understand why nobody wants to pay more, but an education is a great investment,” Ort said. “I think the loans are manageable for these families.”

Yet the average undergraduate accepts his diploma with almost $19,000 in loans to repay, according to results from the 2002 National Student Loan Survey.

UNC administrators recently have been touting the much lower figures for the University’s students — undergraduates leave Chapel Hill with an average of $11,500 in student loans, according to research from the provost’s office during the 2002-03 school year.

This same research demonstrated that, though tuition increased between 1999 and 2002, the average student loan load decreased by almost $2,000.

Meanwhile, the University has received accolades for the Covenant program, which will cover the full cost of an education for about one-tenth of new students starting this fall.

But of the 9,000 UNC students who received financial aid last year, only 5,300 received need-based aid. The remainder found other solutions to balance the financial burden, taking out loans and working when not in class.

“I understand that there are those in the middle where a tuition increase means either ‘I’m going to borrow’ or ‘Work harder,” Ort said.

Tuition hikes temporarily throw off the financial balance, Snowden said, disrupting the predictability that both she and Wegner said is so key for students and their families.

“Is this seen as a way to plug a leaky hole or is this going to be something that continues … as a source of revenue?” Snowden asked in an interview Tuesday.

The University’s governing body will help determine the answer to this question — choosing between an increased burden for nonresidents, a tougher load for N.C. families or a tuition freeze that some say will erode the quality of education at UNC.

Contact the University Editor at udesk@unc.edu.