Tag: Tuition

  • That Was The Quarter That Was, Summer 2025

    That Was The Quarter That Was, Summer 2025

    Welcome to TWTQTW for June-September. Things were a little slow in July, but with back to school happening in most of the Northern Hemisphere sometime between last August and late September, the stories began pouring in. 

    You might think that “back to school” would deliver up lots of stories about enrolment trends, but you’d mostly be wrong. While few countries are as bad as Canada when it comes to up-to date enrolment data, it’s a rare country that can give you good enrolment information in September. What you tend to get are what I call “mood” pieces looking backwards and forwards on long-term trends: this is particularly true in places like South Korea, where short-term trends are not bad (international students are backfilling domestic losses nicely for the moment) but the long-term looks pretty awful. Taiwan, whose demographic crisis is well known, saw a decline of about 7% in new enrolments, but there were also some shock declines in various parts of the world: Portugal, Denmark, and – most surprisingly – Pakistan

    Another perennial back-to-school story has to do with tuition fees. Lots of stories here. Ghana announced a new “No Fees Stress” policy in which first-year students could get their fees refunded. No doubt it’s a policy which students will enjoy, but this policy seems awfully close in inspiration to New Zealand’s First Year Free policy which famously had no effect whatsoever on access. But, elsewhere, tuition policy seems to be moving in the other direction. In China, rising fees at top universities sparked fears of an access gap and, in Iran, the decision of Islamic Azad University (a sort-of private institution that educates about a quarter of all Iranian youth) to continue raising tuition (partly in response to annual inflation rates now over 40%) has led to widespread dissatisfaction. Finally, tuition rose sharply in Bulgaria after the Higher Education Act was amended to link fees to government spending (i.e. more government spending, more fees). After student protests, the government moved to cut tuition by 25% from its new level, but this still left tuition substantially above where it was the year before.

    On the related issue of Student Aid, three countries stood out. The first was Kazakhstan, where the government increased domestic student grants increased by 61% but also announced a cut in the government’s famous study-abroad scheme which sends high-potential youth to highly-ranked foreign universities. 

    Perhaps the most stunning change occurred in Chile, where two existing student aid programs were replaced by a new system called the Fondo para la Educación Superior (FES), which is arguably unique in the world. The idea is to replace the existing system of student loans with a graduate tax: students who obtain funds through the FES will be required to pay a contribution of 10% of marginal income over about US$515/week for a period of twenty years. In substance, it is a lot like the Yale Tuition Postponement Plan, which has never been replicated at a national level because of the heavy burden placed on high income earners. A team from UCL in London analyzed the plan and suggested that it will be largely self-supporting – but only because high-earning graduates in professional fields will pay in far more than they receive, thus creating a question of potential self-selection out of the program.

    In Colombia, Congress passed a law mandating ICETEX (the country’s student loan agency which mostly services students at private universities) to lower interest rates, offer generous loan forgiveness and adopt an income-contingent repayment system. However, almost simultaneously, the Government of Gustavo Petro actually raised student loan interest rates because it could no longer afford to subsidize them. This story has a ways to run, I think.

    On to the world government cutbacks. In the Netherlands, given the fall of the Schoof government and the call for elections this month, universities might reasonably have expected to avoid trouble in a budget delivered by a caretaker government. Unfortunately, that wasn’t the case: instead, the 2026 imposed significant new cuts on the sector. In Argentina, Congress passed a law that would see higher education spending rise to 1% of GDP (roughly double the current rate). President Milei vetoed the law, but Congress overturned President Milei’s veto. In theory, that means a huge increase in university funding. But given the increasing likelihood of a new economic collapse in Argentina, it’s anyone’s guess how fulfilling this law is going to work out.

    One important debate that keeps popping up in growing higher education systems is the trade-off between quality and quantity with respect to institutions: that is, to focus money on a small number of high-quality institutions or a large number of, well, mediocre ones. Back in August, the Nigerian President, under pressure from the National Assembly to open hundreds of new universities to meet growing demand, announced a seven-year moratorium on the formation of new federal universities (I will eat several articles of clothing if there are no new federal universities before 2032). Conversely, in Peru, a rambunctious Congress passed laws to create 22 new universities in the face of Presidential reluctance to spread funds too thinly. 

    The newson Graduate Outcomes is not very good, particularly in Asia. In South Korea, youth employment rates are lower than they have been in a quarter-century, and the unemployment rate among bachelor’s grads is now higher than for middle-school grads. This is leading many to delay graduation. The situation in Singapore is not quite as serious but is still bad enough to make undergraduates fight for spots in elite “business cubs”. In China, the government was sufficiently worried about the employment prospects of the spring 2025 graduating class that it ordered some unprecedented measures to find them jobs, but while youth employment stayed low (that is, about 14%) at the start of the summer, the rate was back up to 19% by August. Some think these high levels of unemployment are changing Chinese society for good. Over in North America, the situation is not quite as dire, but the sudden inability of computer science graduates to find jobs seems deeply unfair to a generation that was told “just learn how to code”. 

    Withrespect to Research Funding and Policy, the most gobsmacking news came from Switzerland where the federal government decided to slash the budget of the Swiss National Science Foundation (SNSF) by 20%. In Australia, the group handling the Government’s Strategic Examination of Research and Development released six more “issue” papers which, amongst other things, suggested forcing institutions to choose particular areas of specialization in areas of government “priority”, a suggestion which was echoed in the UK both by the new head of UK Research and Innovation and the President of Universities UK.     

    But, of course, in terms of the politicization of research, very little can match the United States. In July, President Trump issued an Executive Order which explicitly handed oversight of research grants at the many agencies which fund extramural research to political appointees who would vet projects to ensure that they were in line with Trump administration priorities. Then, on the 1st of October (technically not Q3, but it’s too big a story to omit), the White House floated the idea of a “compact” with universities, under which institutions would agree to a number of conditions including shutting down departments that “punish, belittle” or “spark violence against conservative ideas” in return for various types of funding. Descriptions of the compact from academics ranged from “rotten” to “extortion”. At the time of writing, none of the nine institutions to which this had initially been floated had given the government an answer.

    And that was the quarter that was.

     

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  • Tuition Discounts Fuel Higher Ed Skepticism

    Tuition Discounts Fuel Higher Ed Skepticism

    Tuition discounting is a tactic private colleges have long used to control a primary revenue stream. But over the past decade, an increasingly precarious financial picture—driven in part by stagnating state funding and tuition caps—has pushed public institutions to adopt tuition-discounting policies, too.

    According to an issue brief from the Strada Education Foundation, the share of first-time, full-time undergraduates receiving institutional grant aid at public four-year institutions increased from 49 percent to 62 percent between 2014–15 and 2021–22. The average discount rates increased from 24 percent to 31 percent over the same period.

    Strada argued in the brief that tuition discounting sows confusion about the real cost of college among students and their parents. The practice also fuels increased public skepticism about the value of a college degree. It warned that growing financial uncertainty for public higher education could make the problem worse.

    “State postsecondary budgets soon may face new strains stemming from federal actions, demographic shifts, and broader fiscal pressures,” the brief said. “Without intentional alignment between states and institutions, this environment could drive even more aggressive tuition discounting in the years ahead—further complicating cost transparency for students, public missions, and the perceived value of education.”

    Tuition discounts allow institutions to maintain financial stability and recruit academically strong or underrepresented students who may be enticed by a big discount presented as a scholarship. However, increases in merit-based aid can “favor wealthier or out-of-state students at the expense of low-income, in-state residents,” according to Strada’s brief.

    “These practices also leave students, families, and citizens confused and without a transparent understanding of the cost of higher education,” the report said, noting that low-income and first-generation college students are especially vulnerable to uncertainty around tuition prices. “As the debate over the value of postsecondary education continues, exaggerated prices and confusion over actual costs weigh heavily on public trust and whether ‘college is worth it.’” 

    The report recommends a set of guiding principles to address tuition discounts:

    • Transparency and clarity for families;
    • Alignment between state and institutional aid;
    • Regular assessment of aid strategies;
    • Ensuring discounting supports public mission and access goals, not just revenue; and
    • Avoiding blunt, one-size-fits-all approaches.

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  • Judge Dismisses Tuition Price-Fixing Lawsuit

    Judge Dismisses Tuition Price-Fixing Lawsuit

    A federal judge in Illinois has dismissed a lawsuit accusing the College Board and 40 highly selective private colleges and universities of conspiring in a price-fixing scheme to inflate tuition costs.

    In a decision released last week, U.S. District Judge Sara Ellis determined that the plaintiffs, a Boston University student and an alum of Cornell University, “have not plausibly alleged that Defendants entered into an agreement” demonstrating collusion on pricing.

    The class action lawsuit, filed just shy of a year ago, alleged that the defendants overcharged tuition for students of divorced or separated parents by considering the financial information of the noncustodial parent, as well as the custodial one, in calculating financial aid awards. The plaintiffs claimed that the formula increased their tuition by an average of $6,200.

    The lawsuit alleged that the price-fixing arrangement among the 40 institutions began in 2006, when the College Board began requiring both parents to submit financial information for its College Scholarship Service profiles, regardless of the student’’ custody arrangements. While last week’s decision acknowledged the practice inflated tuition prices at the institutions named, Ellis found no evidence that they had conspired.

    “Nothing in Plaintiffs’ complaint suggests that the University Defendants exchanged their own internal financial aid decisionmaking processes or guidelines or otherwise shared with the other University Defendants the amount of financial aid they planned to offer a particular student,” she wrote. “Nor does the complaint allege that the University Defendants all agreed on the same exact formula for calculating financial aid based on the [noncustodial parent’s] financial information.”

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  • Kentucky Reaches Tentative Settlement Over In-State Tuition Policy for Undocumented Students

    Kentucky Reaches Tentative Settlement Over In-State Tuition Policy for Undocumented Students

    Kentucky Attorney General Russell ColemanThe U.S. Department of Justice and the Kentucky Council on Postsecondary Education have reached a preliminary settlement agreement that would end the state’s policy of offering in-state tuition rates to undocumented students who graduate from Kentucky high schools.

    The agreement comes after the DOJ filed a federal lawsuit in June challenging Kentucky’s practice of extending in-state residency status—and the accompanying lower tuition rates—to any student who completes high school in the state, regardless of immigration status. The Justice Department argued this policy creates unequal treatment by providing financial benefits to undocumented immigrants while denying the same rates to U.S. citizens living in other states.

    “No state can be allowed to treat Americans like second-class citizens in their own country by offering financial benefits to illegal aliens,” Attorney General Pamela Bondi said in announcing the federal lawsuit.

    The legal challenge reflects broader federal immigration enforcement priorities under the Trump administration, which has issued executive orders aimed at preventing undocumented immigrants from accessing taxpayer-funded benefits or preferential treatment in government programs.

    Kentucky’s Republican Attorney General Russell Coleman has supported the federal position, arguing that state policy conflicts with federal law prohibiting undocumented immigrants from receiving college benefits unless identical benefits are available to all U.S. citizens. In July, Coleman urged the Council on Postsecondary Education to voluntarily withdraw the regulation rather than pursue costly litigation.

    “The federal government has set its immigration policy, and the Council must regulate in accordance with it,” Coleman wrote to the CPE. “To that end, I urge the Council to withdraw its regulation rather than litigate what I believe will be, and should be, a losing fight.”

    Under the tentative settlement terms, the Kentucky Council on Postsecondary Education has acknowledged that its tuition policy violates federal law and agreed to terminate it immediately. However, the agreement remains pending approval from U.S. District Court Judge Gregory Van Tatenhove in the Eastern District of Kentucky.

    The Kentucky case mirrors a similar federal challenge resolved earlier this year, when Texas reached a settlement with the DOJ over comparable in-state tuition policies for undocumented students.

    The Mexican American Legal Defense and Educational Fund (MALDEF), a prominent Latino civil rights organization, has filed a motion seeking to intervene in the Kentucky lawsuit on behalf of affected students. The motion remains under judicial review. MALDEF was previously denied intervention rights in the parallel Texas case.

    The policy change could significantly impact college affordability for undocumented students who have spent their formative years in Kentucky’s educational system. In-state tuition rates are typically substantially lower than out-of-state rates, making higher education more accessible for students from families with limited financial resources.

     

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  • Kentucky to End In-State Tuition for Undocumented Students

    Kentucky to End In-State Tuition for Undocumented Students

    Photo illustration by Justin Morrison/Inside Higher Ed | amriphoto/E+/Getty Images | klyaksun and SAHACHAT/iStock/Getty Images

    The Kentucky Council on Postsecondary Education agreed to terminate its offering of in-state tuition to undocumented students, according to a settlement filed in court Monday, WKU Public Radio reported.   

    The termination of reduced tuition remains tentative, as the settlement has yet to be signed by a district court judge, but if it does come to fruition, Kentucky would be the third state to capitulate to demands of the Trump administration on the issue.

    President Trump’s Department of Justice has sued multiple states over their policies that provide in-state tuition to undocumented students, arguing that doing so discriminates against out-of-state Americans. Republican-led states that were sued quickly agreed to scrap the policies. But Kentucky, governed by a Democrat, took longer. (Similar lawsuits against Minnesota and Illinois are still pending.)

    The state attorney general, a Republican, told the council that the lawsuit would be a “losing fight,” WKU reported.

    The Trump administration and state Republicans leaders have used these lawsuits to go around state legislatures and Congress to change policies and programs.

    Some higher education and legal experts have called the practice unlawful collusion and tried to intercede on behalf of the immigrant students in court, but they’ve had little luck so far.

    MALDEF, the same Latino civil rights group that tried and failed to intervene in the Texas lawsuit, has filed a motion to intervene in Kentucky, but the court has yet to rule on that request.

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  • Turning the Corner | HESA

    Turning the Corner | HESA

    Things have been bleak in higher education the last couple of years, and no doubt they will remain bleak for a while. But it recently became clear to me how we’ll know that we are turning the corner: it will be the moment when provincial governments start allowing significant rises in domestic tuition.

    This became clear to me when I was having a discussion with a senior provincial official (in a province I shall not name) about tuition. I was arguing that with provincial budgets flat and declining international enrolment, domestic tuition needed to increase – and that there was plenty of room to do so given the affordability trends of the last couple of decades.

    What affordability trends, you ask? I’m glad you asked. Affordability is a ratio where the cost of a good or service is the numerator and some measure of ability to pay is the denominator. So, let’s look at what it takes to pay average tuition and fees. Figure 1 shows average tuition as a percentage of the median income of couple families and lone-parent families aged 45-54.  As you can see, for the average two-couple household, average tuition (which – recall last Wednesday’s blog – is an overestimate for most students) has never been more affordable in the twenty-first century. For lone-parent families, current levels of tuition are at a twenty-year low.

    Figure 1: Average Undergraduate Tuition and Fees as a Percentage of Median Family Income, Couple Family and Lone-Parent Families aged 45-54, Canada, 2000-2024

    Ah, you say, but that’s tuition as a function of parental ability-to-pay – what about students? Well, it’s basically the same story – calculated as a percentage of the average student wage, tuition has not been this cheap since the turn of the century, and in Ontario, it has dropped by 27% since 2017. And yes, the national story is to a large degree a function of what’s been going on in Ontario, but over the past decade or so, this ratio has been declining in all provinces except Manitoba, Saskatchewan and Alberta.

    Figure 2: Number of Hours Worked at Median Hourly Income for Canadians Aged 15-24 Required to pay Average Undergraduate Tuition and Fees, Canada and Ontario, 1997-2024

    And that’s before we even touch the issue of student aid, which as you all know is way up this century even after we take student population growth into account. In real dollars, we’ve gone from a $10B/year student aid system to a $20B/year system with the vast majority of growth coming on the non-repayable side, rather than from loans.

    Figure 3: Total Student Financial Assistance by Type, Selected years, 1993-94 to 2023-2024, in Millions, in $2023

    In fact, student aid expenditures are so high nowadays that across both universities and colleges we spend about $3 billion more in student aid than we take in from tuition fees. That’s NEGATIVE NET TUITION, PEOPLE.

    Figure 4: Aggregate Non-Repayable Aid vs Aggregate Domestic Tuition fees, 2007-08 to 2023-24, in Billions, in $2023

    So, yeah, affordability trends. They are much more favorable to students than most people think.

    Anyway, the provincial official seemed a bit nonplussed by my reply: my sense is that they had never been briefed on the degree to which tuition increases have been thrown into reverse these past few years, and he certainly didn’t know about the huge increase in non-repayable aid over the past few decades. They didn’t push back on any of this evidence, BUT, they insisted, tuition fees weren’t going up because doing so is hard and it’s unpopular.

    To which I responded: well, sure. But was raising tuition any easier or less unpopular in 1989 when the Quebec Liberal government more than doubled tuition? Than in the mid-90s when both the NDP and Conservative governments allowed tuition to rise? Than in 2001 when the BC Liberals allowed tuition to increase by 50%? This has been done before. There’s absolutely no reason it can’t be done again. The only thing it will take is the courage to put the requirements of institutions that actually build economies and societies ahead of the cheap, short-term sugar highs of chasing things like “affordability”. 

    Now, to be fair, I don’t for the moment see any provincial governments prepared to do this. If there is one thing that seems to unite provincial governments these days, it is an inability to make hard decisions. But this particular political moment won’t last forever. It might take a serious, long-term recession to knock it into various heads that no matter how much money we sink into them, natural resources and construction alone won’t run this economy. Eventually, we’re going to have to re-build the great college and university system we’re in the middle of trashing. 

    And we’ll know that moment has come when provincial governments agree that domestic tuition should rise again.

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  • Fixed Tuition

    Fixed Tuition

    A few days ago, someone mentioned how nice it would be if students could have their tuition level held steady after enrollment, so they could plan. It got me thinking.

    The usual version of that proposal assumes that students enroll full-time at a given tuition level, then sail through, full-time, unimpeded, until their on-time graduation. The benefit to the students (and their families) is obvious, both in terms of absolute amounts of money and in terms of predictability. As a parent who has been paying out-of-state tuition since 2019, I get the appeal.

    Of course, the rest of the economy doesn’t freeze costs for years at a time, and college employees live in that economy. So annual tuition increases would still have to happen, but they could only be inflicted upon new students. In any given year, freshmen would pay more than sophomores, who would pay more than juniors and so on. The first year that happened, the increase for freshmen would have to be pretty dramatic to ensure that future years would generate enough revenue. Or, theoretically, states could make up the difference.

    That doesn’t seem likely.

    For example, Pennsylvania hasn’t even passed its budget yet for this year. You know, the one that we’re several months into. Uncertainty rolls downhill; asking us to guarantee years in advance when we don’t even have this year’s figure yet isn’t realistic. In its defense, the state is dealing with a federal funding situation that could be described as mercurial. Higher ed funding at the state level competes with other priorities, such as the state versions of Medicaid.

    Now, if the promise of fixed tuition led to a more rational federal budgeting process …

    OK, OK. Seriously, though, using variable revenues to cover fixed costs is a dangerous game. Very elite private schools often have the option of using endowment returns to provide predictable operating funds, which, in turn, could lead to more predictable tuition charges. But those of us at the mercy of annual (and frequently late) state allocations don’t have that option.

    Even allowing for all of that, though, I can’t help but wonder about the student that the model assumes. It’s essentially the IPEDS model: first-time, full-time, degree-seeking, supported by family. In the community college world, that describes a small minority of the student body.

    Here, students move into and out of full-time status from semester to semester. Sometimes life happens and they step out for a bit (or longer), then decide to return years later. They usually work for pay, often full-time, while they’re taking classes. Stop-start patterns of enrollment make predictable tuition harder to define. They also necessarily lead to higher increases for those who come back, since the entire increase for any given year is visited upon new students, rather than being spread evenly across classes.

    Free community college would have solved this, of course, by setting a figure of zero and leaving it there. As long as operating support increased with costs, that would be sustainable, and it’s admirably simple. But that doesn’t appear to be on the table at the federal level, and states can’t deficit spend during recessions, which is usually when demand for other services increases and tax revenues drop.

    If we could set public funding in a way that covers fixed costs, leaving only the variable costs to be covered by tuition, then there could be a real possibility for a (clearly defined) tuition freeze. Or at least the levels would be low enough that annual increases wouldn’t hurt so much. Until that happens, though, it’s just untenable. As a parent, that bothers me, but the blame should be placed where it actually belongs.

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  • Fun with Tuition Data | HESA

    Fun with Tuition Data | HESA

    I want to show you something kind of intriguing about how tuition is changing in Canada.

    By now you might be familiar with a chart that looks like Figure 1, which shows average tuition, exclusive of ancillary fees (which would tack another $900-1000 on to the total), in constant $2024. The story it shows is one of persistent real increases from up until 2017-18, at which point, mainly thanks to policy changes in Ontario, tuition falls sharply and continues to fall as tuition increases across the country failed to keep up with inflation in the COVID years. Result: average tuition today, in real terms, is about where it was in 2012-13.  

    Figure 1: Average Undergraduate Tuition Fee, Canada, in $2024, 2006-07 to 2024-25

    Simple story, right? Boring, even.  

    But then, just for fun, I decided to look at tuition at the level of individual fields of study. And what I found was kind of interesting. Take a look at Figure 2, which shows average tuition in what you might call the university’s three “core” areas: social science, humanities, and physical/life sciences. It’s quite a different story. The pre-2018 rise was never as pronounced as it was for tuition overall, and the drop in tuition post-2018 was more pronounced. As a result, tuition in the humanities is about even with where it was in 2006 and in the sciences is now three percent lower than it was in 2006.

    Figure 2: Average Undergraduate Tuition Fee by Field of Study, Canada, in $2024, 2006-07 to 2024-25

    This got me thinking: how is it possible that the overall average tuition is rising so quickly when so many big disciplines are showing so little change? So I looked at the change in each discipline from 2006-07 to 2024-25. Figures 3 and 4 show the 18-year change in tuition for direct- and second-entry programs (and yes, this is an admittedly English Canadian distinction, since the programs in Figure 4 are also at least partially direct entry in Quebec).

    Figure 3: Change in Real Tuition Levels, direct-entry undergraduate programs, Canada, 2006-07 to 2024-25

    Figure 4: Change in Real Tuition Levels, second-entry undergraduate programs, Canada, 2006-07 to 2024-25

    Two very different pictures, right? Quite clearly, second-entry degrees – which are a tiny fraction of overall enrolments – are nevertheless dragging the overall average up quite a bit. Unfortunately, it’s not easy to work out exactly how much because – inexplicably – Statscan does not use the same field of study boundaries for enrolment and tuition. But, near as I can figure out, there are about 15,000 students in law in Canada, 5,000 in pharmacy, 3,000 in dentistry and 2,000 in veterinary science. So that’s 25,000 students (or 2% of the undergraduate total) in fields with very high tuition increases, and a little back-of-the-envelope math suggests that these increases for just 2% of the student body were responsible for about 15% of all tuition growth.  

    Now, there is one other thing you have to look at and that is what is going on in engineering. This field has the fastest-growing real tuition over the period (26%) but is also the fastest-growing field in terms of domestic student enrolments (up 56% over the same period, compared to 16% for universities as a whole). So, compared with a world where engineering enrolments stayed steady between 2006-07 and 2024-25, an extra 22,000 people voluntarily enrolled in a field of study which was both more expensive (compared to science, average engineering tuition is about $2500 higher) and increasingly so every year. Again, a little back-of-the-envelope math shows that this phenomenon was responsible for between 10 and 11% of the growth in overall average tuition.  

    So, let’s add all that up: about a quarter of all the real growth in tuition over the past 20 years (which, as we noted at the outset wasn’t all that much to begin with) was due to tuition growth in the country’s most expensive programs. These are programs which are either growing rapidly or have long waiting lists, so I think the argument that these tuition increases have deterred enrolment is a bit far-fetched. And it means that the vast majority of students are seeing tuition fees which are well below the “average”. In fact, by my calculations, the actual increase in real dollars for that portion of the student body in first-degree programs – bar engineering – is somewhere around $625 in eighteen years.

    Affordability crisis? Not really.

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  • Colleges Shouldn’t Hike Tuition After May 1 (opinion)

    Colleges Shouldn’t Hike Tuition After May 1 (opinion)

    For students and their families, a university education is a massive investment of time and, often, money. To make a wise and informed decision about that investment, prospective students need full and timely financial transparency about that cost. The state of Florida has made that impossible for this year’s new out-of-state students.

    As a married academic couple, we were excited for our oldest daughter to begin her college journey. Starting her sophomore year of high school, she carefully analyzed her options along many dimensions, from location and program offerings to student life and academic rigor. After she developed a short list of about 20 universities, we created a spreadsheet that categorized colleges on anything that could be quantified. As offers and acceptance letters began rolling in, yet another spreadsheet carefully tracked tuition, room and board, and scholarships.

    After this careful analytic work, 13 on-campus visits and countless hours of conversation, our daughter chose the University of Florida. It was a tough decision; she had offers from other good colleges, including in- and out-of-state options that were more financially competitive. In the end, she valued UF’s high academic rigor and reputation combined with a relatively affordable cost. She made her choice about two weeks before the national May 1 decision deadline, and we began to prepare for her move to Gainesville. Of course, that planning included how we would pay for it. Based on numbers provided publicly on the university’s website, we thought we had that figured out.

    Then the state of Florida changed the financial picture.

    On June 18, the state of Florida’s Board of Governors permitted public universities to increase out-of-state student fees by 10 percent for the 2025–26 academic year (though called “fees,” this is in effect Florida’s term for the differential tuition costs paid by out-of-staters). And on July 23—more than two months after the national decision deadline, and less than a month before the start of the fall semester—the University of Florida’s Board of Trustees unanimously decided to do just that, hiking the per-credit cost for an out-of-state undergraduate by about $70 per credit, or about $2,000 for a full-time course load for the year. According to The Gainesville Sun, this decision was “in response to a budget shortfall of about $130 million due to a loss in state appropriations.”

    Both of us lead university units with tight budgets. Therefore, we have empathy for the tough fiscal decisions that higher education professionals sometimes must make. Perhaps the hardest financial decision university leaders face is when and by how much to increase tuition—in other words, when to pass the financial burden on to the students that we serve. That decision also increases young adults’ student loan debt, a matter of national concern addressed in many higher education articles, books and podcasts.

    But because of timing, what the state of Florida has done is different and much worse than a simple tuition/fee increase. If the university had announced the 2025–26 increase in fall 2024, we could have planned for that increase ahead of time. I do not think that would have changed our daughter’s decision, but it might have. Instead, by raising tuition so late in the game, Florida has created a classic example of a bait-and-switch: lure students in with the low cost, then dramatically increase it after their other options are gone.

    We remain excited about our daughter’s future at the University of Florida—and, most importantly, our daughter remains excited, too, despite this financial bump in the road. However, this last-minute change in price generated additional stress and uncertainty around her transition to college. When we spoke with one of the university’s financial aid advisers in late July, he was empathetic. He pointed us to the university’s scholarship portal—but of course, those scholarship deadlines passed long ago, serving as further evidence that Florida’s tuition increase came much too late.

    We have little doubt that this tuition approach has created stress for other students, too. With widespread concern for student mental health, increasing tuition costs just weeks before classes begin may add to students’ anxiety before they even set foot on campus. Student affairs professionals could see more requests for basic needs assistance, as students make tough choices between paying the higher tuition costs and other bills. University counseling centers are often already running at or above capacity and do not need such additional caseload.

    Ultimately, this pricing practice fails the test of scalability. If every university increased tuition well after the decision deadline, it would be chaos. Students and their families would have no way to plan. Particularly given significant public concern about the high cost of higher education and burgeoning student loan debt, this is unacceptable.

    Despite much debate within and beyond academia, the financial burden faced by young college students is a problem with no obvious solution in sight. But perhaps we can all agree on this: In order to make a wise financial decision, incoming students need complete and accurate information about the cost of college at least a few weeks ahead of the national decision deadline. Federal policy should preclude universities from making changes to their tuition and fees for the upcoming year after a certain point (say, two weeks prior to the decision deadline). Such a policy would provide transparency for students and fiscal accountability for higher education institutions.

    Andrew M. Ledbetter is a professor and chair in the Department of Communication Studies at Texas Christian University.

    Jessica L. Ledbetter is assistant dean of students at the University of Texas at Arlington.

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  • DOJ Sues Illinois Over In-State Tuition for Noncitizens

    DOJ Sues Illinois Over In-State Tuition for Noncitizens

    The U.S. Department of Justice sued Illinois on Tuesday over its policy to allow in-state tuition rates for undocumented students. Illinois is the fifth state targeted by such a lawsuit.

    The DOJ filed a complaint in the Southern District of Illinois against the state, Gov. JB Pritzker, the state attorney general and boards of trustees of state universities. The complaint argues that it’s illegal to offer lower tuition rates to undocumented students if out-of-state citizens can’t also benefit.

    Illinois passed a law in 2003 that grants in-state tuition to undocumented students who meet certain criteria. To qualify, students need to reside and attend high school in the state for three years, graduate from an Illinois high school, and sign an affidavit promising to apply to become a permanent resident as soon as possible. Pritzker then signed a bill into law last year that would loosen these criteria, starting in July 2026. Students will be able to pay in-state tuition rates if they meet one of two sets of requirements, including attending an Illinois high school for at least two years or a combination of high school and community college in the state for at least three years.

    “Under federal law, schools cannot provide benefits to illegal aliens that they do not provide to U.S. citizens,” Attorney General Pamela Bondi said in a news release. “This Department of Justice has already filed multiple lawsuits to prevent U.S. students from being treated like second-class citizens—Illinois now joins the list of states where we are relentlessly fighting to vindicate federal law.”

    In Texas and Oklahoma, the DOJ successfully ended in-state tuition for undocumented students; attorneys general in the two red states swiftly sided with the federal government’s legal challenges. Lawsuits against Kentucky and Minnesota are still ongoing.

    This latest lawsuit will likely escalate the Trump administration’s battle with the state of Illinois. President Donald Trump has said he wants to send the National Guard to Chicago, a move that Pritzker forcefully pushed back on. Since Trump took office, Pritzker has been an outspoken critic.

    April McLaren, deputy press secretary for the Illinois attorney general’s office, said officials are reviewing the case and have “no further comment.” Representatives at Eastern Illinois University, Northeastern Illinois University and Southern Illinois University, whose boards were among those named in the lawsuit, similarly told Inside Higher Ed that they can’t comment on pending litigation.

    A spokesperson for the governor’s office defended the state’s policy and called the lawsuit “yet another blatant attempt to strip Illinoisans of resources and opportunities.” 

    “While the Trump Administration strips away federal resources from all Americans, Illinois provides consistent and inclusive educational pathways for all students—including immigrants and first-generation students—to access support and contribute to our state,” the spokesperson wrote in an email to Inside Higher Ed. “All Illinoisans deserve a fair shot to obtain an education, and our programs and policies are consistent with federal laws.” 

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