College tuition on the rise but private schools are going up for slowly than public ones

Private college tuition went up by 3.9 percent on average nationwide for 2012-13, according to the National Association of Independent Colleges and Universities, its lowest increase in 40 years. Public universities went up 4.8 percent, according to the College Board.

The Indiana Commission for Higher Education recommended Indiana’s public universities not increase tuition more than 2 percent per year. Indiana University approved a 1.75 percent increase and Purdue University froze tuition.

Taylor Chief Financial Officer Steve Olson said the school, a private university, does not consider the commission or consumer price index (CPI), which increased 2 percent in 2012, when making tuition decisions.

“We look at a typical family — there’s no such thing as a typical family, but our customer base — and what their situation is,” he said. “We’re also interested in what our own costs look like. … It’s hard to make an apples to apples comparison to the things we purchase (including food, utilities and labor) and the CPI.”

Olson said looking at economic trends led the university to slow down its tuition increases, which were about 4 percent each year between 2008-09 and 2011-12. During that period, tuition moved from $30,898 to $34,970.

After two years of 2.5 percent increases, tuition is set at $36,742 for 2013-14.

“We said, it’s time we make a significant change. … That was primarily driven by economic and market conditions rather than our costs,” he said. “We didn’t cut anything. … We were able to work internally and not do anything a student or family would notice.”

Olson said he does not foresee significant changes in the market in the next three years, so Taylor’s tuition increases are likely to remain similar to the previous two.

“I would say it’s our desire to remain at a level similar to that. We’ve not made any promises or commitments,” he said.

Taylor’s enrollment has stayed fairly steady at about 2,000 students over the last 10 years despite the increases. The school welcomed its largest freshman class ever last fall.

“I would imagine the lower-than-usual increase was a factor,” Olson said, naming the opening of the Euler Science Complex as another. “It might be more valuable on the retention side.”

IWU Chief Financial Officer Duane Kilty could not be reached for comment this week.

Kilty said April 5 that IWU’s 2 percent increase for 2013-14 includes no room and board hike for returning students and is IWU’s smallest in at least a decade.

Information provided by Kilty in October showed IWU increased tuition about 5 percent for 2009-10 and 2012-13, with about 3 percent increases for 2010-11 and 2011-12.

Overall, IWU tuition moved from $19,376 for 2008-09 to an estimated $23,638 for 2013-14.

“IWU strives to keep tuition as low as possible for our students,” Kilty said in October. “Factors that influence changes are increased cost of regulation by the federal and state governments, raises for faculty and staff, increased cost of healthcare and increased cost of utilities to operate our buildings.”

Ivy Tech’s Board of Trustees approved $5 per credit-hour tuition increases for the next four semesters and a $1-per-hour student activities fee starting this fall.

In-state tuition at Ivy Tech is currently $111.15 per credit-hour. It has increased at least 3 percent each year since 2008-09, when it was $95 per credit-hour.

Jeff Fanter, Ivy Tech vice president for communications, enrollment and marketing, told the Tribune-Star of Terre Haute that Ivy Tech alerted the Commission for Higher Education that it “would need to exceed that recommendation” of 2 percent.

“We are operating with a gap of over $60 million in funding since we became the state’s community college in 2005,” Fanter wrote in an email, according to the Tribune-Star.

Ivy Tech’s announcement followed news that the college could close about 20 of its 50 leased facilities this fall in the face of a $68 million deficit. Ivy Tech operates 72 Indiana campuses, including Marion’s state-owned building which will not be affected by any facility closures.

Andrew Bowne, chancellor for the east central region that includes Marion, said the school’s “hope is that (the increase) won’t have any significant impact on enrollment,” but he recognizes that students could suffer from the added cost.

“The purpose for doing it is to direct more resources to support students and their success. … It’s not going to salary increases,” Bowne said. “When you put it in the big scale of accessibility and affordability for students, we’re still the best value in Indiana.”

Ivy Tech’s enrollment fell from 1,556 students for 2011 to 1,391 students last fall. Spring enrollment rebounded to 1,733, however.

“There are a lot of financial aid opportunities available if students have filed their FAFSA application,” said John Lightle, east central vice chancellor and dean of the Marion campus. “(Ivy Tech is) still the most affordable way for secondary training and education.”