MSU board approves budget that includes hikes in student aid, tuition

Contact: Terry Denbow, University Relations, (517) 355-2262, denbow@msu.edu

Jun 08, 2004

EAST LANSING, Mich. - The Michigan State University Board of Trustees today adopted a budget for fiscal year 2004-05 that includes a tuition increase for in-state residents of 2.4 percent, and an increase in student assistance that will make an additional $1.8 million in financial aid available.

Coupled with a recent 4.4 percent increase in the basic residence halls room and board rates (a total of $228), overall costs to MSU students living on campus will be up about 3.5 percent for the 2004-05 school year.

Last year, the board approved a 9.9 percent increase in tuition that was effective in the fall of 2003. It also approved a 2 percent hike that went into effect this summer.

Under the general fund budget - a spending plan totaling $715.2 million, an increase of 3.2 percent over last year , in-state freshmen and sophomores will now pay $206.25 per credit hour (up from last year's rate of $201.50). In-state juniors and seniors will pay $229.75 per credit hour (up from last year's $224.50).

The budget also includes a faculty salary adjustment of 3 percent, as well as reductions and re-allocations totaling $22.4 million.

"Raising tuition is never an easy thing to do, but I'm very pleased that we've been able to work with the state to keep our increase as low as possible," said MSU President Peter McPherson. "I'm particularly gratified that we were able to increase financial assistance to our students."

Earlier this year, the MSU board endorsed a state proposal that off set reductions from 5 percent to 2 percent to Michigan public universities that kept undergraduate resident tuition consistent with inflation.