Students will pay more for classes this fall as a result of a tuition increase set by the MSU Board of Trustees at its meeting Monday.
To balance the 5.9 percent tuition increase for in-state undergraduate students and 6.9 percent increase for out-of-state undergraduate students, financial aid was expanded by 8.5 percent and the new Spartan Advantage program, which will help finance incoming freshman at or below the poverty level, was implemented.
Even though MSU is seventh in the state for education costs, the university is seeking ways to expand the number of potential students, MSU President Lou Anna K. Simon said.
"We have to increase the talent pool," Simon said. "It needs to be a world-class pool. This budget is trying to do that."
The tuition increase compensates for the cost of energy above inflation, additional money for financial aid, administrative computing costs and faculty salaries, according to a budget development and implementation memorandum. The 3 percent increase in funding from the state set Wednesday was also considered while determining tuition costs.
Board member Dorothy Gonzales said she is always concerned with tuition costs, knowing many students struggle to pay for school.
"What is it going to be like in two or three years?" Gonzales said, adding that the university needs to work harder to obtain more endowments and discontinue the trend of raising tuition.
Out-of-state undergraduate students pay about $21,000 a year in tuition and fees, but about $1,300 will be added with the increase, according to a press release from the university. In-state undergraduate students pay about $8,000 to $8,700 and can expect to shell out about an additional $450 to $490 this fall.
In an effort to finance more incoming freshmen, a loan elimination program called Spartan Advantage was also adopted. The program aims to make grant aid and work study equal to the average cost of tuition, fees, room and board and books.
"The commitment to Michigan State is to be accessible to students with broad socioeconomic backgrounds," Simon said.
During travels across the state and through a variety of surveys, Simon said she learned that the feeling in Michigan is that a college education is unattainable to the very poor.
"(Spartan Advantage) sends the strong signal that if you work hard and put attention toward academics, you can come to Michigan State if you're the poorest kid in the world," she said.
To qualify for Spartan Advantage, students must be incoming freshmen from Michigan and be enrolled full time in an undergraduate program. They also must be eligible for Federal Pell Grants and have a total family income at or below the federal poverty level of $20,000 for 2006.
Despite efforts to accommodate as many students as possible, Simon said her regret regarding the budget process is that 700 students remain on the waiting list for the fall semester.
"We're trying to move the student/faculty ratio into competition with the Big Ten," she said. "Michigan State is a magnet for talent, not just in East Lansing, but in the state of Michigan."
