Tuition doesn't reflect true cost

As the threat of tuition hikes looms on the horizon, nonresident students are facing the prospect of paying even more than what it takes to educate them.

If the UNC-system Board of Governors and the N.C. General Assembly approve the proposed $950 campus-based tuition increase for out-of-state students, they will pay up to $1,600 more than the estimated cost of education at a public institution in the United States.

This cost, as estimated by the National Association of College and University Business Officers, hovers around $15,626 per year.

The Figures on Tuition 950 Proposed hike for out-of-state students. 16.3 Current tuition bill for a year of nonresident education, in thousands of dollars. 15.6 The actual cost of a public education, in thousands of dollars, as estimated by a national group.

Nonresidents at UNC-Chapel Hill now pay $16,303, while residents pay $3,205.

The association’s figure takes into account not only what colleges spend on instruction, but also what students would have earned in income if they were not in school.

But Provost Robert Shelton said the cost of education is an inexact calculation that increases each year because of rising costs such as utilities. He also said this year’s nonresident tuition, though officially exceeding the cost, still is within its parameters.

“It’s very hard to calculate the cost of education,” Shelton said. “We were sort of right on that figure for out-of-state students (last year).”

Officials said that while UNC is not an anomaly among its peer institutions in terms of the disparity between resident and nonresident tuition, the dominant philosophy in North Carolina is to keep in-state tuition as low as possible.

During tuition discussions last year, members of the University’s governing board adopted a philosophy to keep in-state tuition levels at the bottom quartile of prices at public peer institutions. Out-of-state tuition, they said, could meet but not exceed the 75th percentile.

This year’s elasticity study showed that both in-state and out-of-state tuition could rise without sacrificing the competitiveness of UNC.

“Carolina is still a good value for out-of-state students, and for in-state, we could charge more and still be a good value,” said Jerry Lucido, vice provost for enrollment management.

Among UNC’s competitors, only two universities — the University of Florida and the University of Texas — had lower nonresident tuition. Shelton said that this year, those universities raised the price of nonresident tuition by 28 percent and 15 percent, respectively.

The imbalance between the two price sets is not exclusive to UNC. At the University of Virginia, out-of-state students pay about $16,000 more than their in-state counterparts. Nonresidents at UNC now pay $13,000 more than residents.

Student Body President Matt Calabria said that while he is concerned that out-of-state students pay more than the estimated cost of education, the real issue lies in the growing gap between in-state and out-of-state tuition.

Lucido said the question of UNC’s status as a “good deal” depends less on statistics than on individual decisions. Students and families, he said, decide what is affordable to them, independent of public policy.

Shelton also said the degree to which UNC is a bargain depends on the costs of its peer institutions. “There are a lot of things in life you’d say are a bargain, then you have to take a value judgment,” he said. “That’s different for every student.

“Everyone agrees in-state students would pay less, but how much less? There’s no answer to that.”

Contact the University Editor at udesk@unc.edu.