LAWRENCE, Kan. (AP) - The University of Kansas plans to let freshmen decide whether to lock in tuition costs over four years or to gamble that yearly rates won’t increase dramatically.
For the last eight years, nearly all incoming freshmen have been required to use the tuition compact. It is intended to protect from sudden sharp increases in tuition by starting with a higher rate but locking the rate in for four years. The fixed-rate tuition was started in 2007 after years of tuition hikes ranging from 14.3 percent to 25.2 percent.
With tuition rates increasing at slower rates than in previous years, freshmen will be able to choose the tuition compact or yearly tuition payments, beginning this fall, the Lawrence Journal-World reported (https://bit.ly/1J8OPbH ).
Students wanted the option, said Jessie Pringle, the student body president. The senior said the tuition compact worked for her.
“Even though I paid a higher tuition starting out, it levels off by the senior year. I enjoyed the reassurance of knowing what my rate was going to be year after year,” Pringle said.
Tuition under the compact is based on estimates of how much tuition might go up each year for four years. The projected increase is spread over eight semesters. If tuition continues to increase slowly, the more traditional payment schedule might save students money.
University officials predict about half of incoming freshmen this fall will not choose the compact.
“The formula for setting the compact has been based on the assumption that tuition was going to increase about 5 to 6 percent each year,” said Diane Goddard, vice provost for administration and finance. “A big flaw, because it almost forced us to have that kind of tuition increase each year. It sort of tied our hands.”
One of the goals of the fixed-rate tuition plan was to encourage more students to graduate in four years but that hasn’t happened. Goddard said the university’s recent increase in four-year graduation rates is more likely attributable to other first-year advising programs.
“The compact alone did not seem to move the needle,” she said.
Rate increases stayed around 6 percent for the three years after the compact was started. For the 2011-2012 school year, the increased dropped to 6.2 percent and has declined every year since. This fall, tuition will rise 3.6 percent, the lowest rate increase at Kansas since the 2001-2002 academic year.
If that decline continues, students making yearly tuition payments would pay less over four years than those in the compact, Goddard said.
Graduate student Angela Murphy said she would still sign up for the compact as she pursues her doctorate.
Even with tuition increases dropping every year, Murphy said, “the compact is your assurance that if tuition happens to spike one year you are still OK, because it’s set. I think it’s worth it even if by being on the compact you end up overpaying by 1 or 2 percent.”
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Information from: Lawrence (Kan.) Journal-World, https://www.ljworld.com
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