The Portland State University Board of Trustees on Tuesday unanimously approved a 2.5% increase to in-state undergraduate tuition for the 2021-22 academic year. The increase equates to $4.75 per credit hour. The approved tuition increase, along with an overall university-wide budget cut of 1.5% combine to allow the university to submit a budget to the Board of Trustees later this year.
“Our students are struggling. We say this time and time again and it continues to be true. Higher education is cost prohibitive for far too many young people and raising tuition in this environment is not something we want to do,” said President Stephen Percy. “The 2.5% proposed increase we are presenting today is the lowest in five years, despite the impact of COVID-19.”
Portland State will continue to have the second lowest tuition rate among public universities in Oregon.
Early forecasts show that enrollment for 2021-22 is projected to decrease between 4.8% and 7.7%, with the largest decline in non-resident students, further compounding Portland State’s revenue challenges. Expenses are expected to increase 2.8%, or $8.8 million, as a result of increased salaries, wages, benefits and general inflation. Together, these factors create an approximate funding gap of $35 million. The continued budget cuts and 2.5% tuition increase will allow PSU to propose a balanced budget before the Board of Trustees in June.
Chuck Knepfle, vice president for enrollment management, said the tuition increase will not significantly impact the majority of students. Those in the Four Years Free and Transfers Finish Free programs, which offer free tuition, will not see any increase in their tuition. These programs account for 40% of the resident student population. Of the 60% of students who are not eligible for either of the tuition programs, Knepfle said three-quarters of them either did not file a FASFA request for aid or come from families that earn more than $100,000 a year. For these students, the additional $4.75 per credit hour is far less likely to be a financial burden.
“The concern is the remaining 2,500 students who are from middle income families making too much money to qualify for the Pell Grant, but for whom the additional tuition charge is real,” Knepfle said. “We’re hopeful if those students come see us we can help them with emergency funding or that these students will be eligible for (Higher Education Emergency Relief) funds.”
Higher education relief funds come from the federal stimulus bills and will provide any Pell Grant-eligible student with grants of approximately $500 per term. The first round of funding was distributed last week, Knepfle said. Additional grants should be available for the summer and fall 2021 terms and into 2022.
“The availability of federal relief funding for student support and our tried and true Four Years Free and Transfers Finish Free programs will protect our neediest students from the impact of a tuition increase and we will continue to look at ways to reduce financial barriers to higher education for all of our students,” Percy said.