1. Tuition and Fees Setting tuition for the 2005-2006 academic year
A presentation by
Matt Calabria, Student Body President
and
Alexa Kleysteuber, Student Body Vice President

2. Presentation Outline Review current tuition and fees
Outline the annual tuition process
Identify major considerations
Review the Art and Science Group elasticity study
Describe uses for proposed increases
Explain current student fees situation
Give the “big picture”

3. Current Tuition and Fees
Currently, in-state students pay $3,205 in tuition and out-of-state students pay $16,303 in tuition each year. In addition, all students pay $1,246 in required fees.
Out-of-state undergraduate students currently pay $677 more in tuition than it costs to educate them ($15,626), or a total of $1,923 over the cost of their education.

4. How UNC Reviews Tuition
All bodies shown ultimately answer to the North Carolina General Assembly

5. Major Considerations
Tuition considerations have two parts: who it comes from and how it is used
TATF’s proposed uses for the increase
This year’s TATF outlined four major uses
Standard 35-40% to cover necessary adjustments in financial aid
Faculty salaries
Faculty-student ratio (hiring more faculty)
Teaching assistant stipends

6. Major Considerations, cont’d.
Target: approx. $9.2 million in revenues generated, $5.5 left for priorities after need based financial aid is fully met
Art and Science Group elasticity study
Methodology
Findings

7. Art and Science Group Study
What we tested:
1. What might we gain or what might we lose at various levels of price increases for in- and out-of-state students?
2. Specifically, what does our competitive market position tell us?

8. Study, cont’d. What we learned:
1. We can safely raise the price of attendance to an amount indexed to the increases of our competitors for in-state students and to our competitors for out-of-state students.
2. Therefore, we must construct a competitor-based price index (CBPI) for the in-state and out-of-state student markets.
3. If we wish to raise our price beyond the levels indicated by the competitor indices, we can safely do so only for in-state students and only if we provide scholarship aid that will substantially offset the incremental price that is charged over and above the competitor indices.
4. Scholarship assistance will be particularly effective with in-state populations in offsetting price increases, in enhancing the reputation of UNC as generous with student aid, and in recognizing outstanding and highly valued students. Scholarship assistance is also needed for out-of-state students since UNC has fallen behind its competitors in merit-based aid.

12. Overview of Proposed Increase Packages
The TATF outlined three potential increase packages
Tuition increases also apply for graduate and professional students in the College of Arts and Sciences
Professional schools have independent tuition requests, which are handled separately
Option A B C
In State
350
300
250
Out of State
800
1000
1200

13. Athletic Fee Increase Two concerns:
1. UNC’s Athletics Dept. could use more funding to improve its Olympic sports programs and salaries, adjust for increased cost of living expenses, and maintain upkeep on athletic facilities
2. The #1 reason accepted students do not attend UNC is that they were not offered a merit scholarship

14. Athletic Fee Increase
UNC receives several million dollars in logo revenues each year
75% goes to academic scholarships
25% goes to the Athletic Department
Proposal: Increase the Athletic Fee $150 to reclaim the 25% portion to be used on need-based scholarships and increase funding to the Athletic Department
$37.50 would cover the 25%
Additional $ would go straight to the Athletic Dept.

15. The “Big Picture”
Students are looking at the following potential increases (using Chancellor’s recommendation):
In-state Out-of-state
Tuition $250 $1200
Fees $ $60
Ath. Fee $ $150
Total: $460 $1410

16. Where do we go from here? Board of Trustees meeting, Carolina Inn:
3pm Wed: Audit and Finance Cmte.
Chancellor’s Ballroom West
5pm Wed: Full Board Convenes
Chancellor’s Ballroom East
8am Thurs: Full Board Reconvenes
Chancellor’s Ballroom E/W