N.C. State will continue to be a great buy for out-of-state undergraduate students if the UNC-Board of Governors agrees on a 9.2 percent tuition increase for the University for the 2014-15 fiscal year, according to Provost Warwick Arden.
“There’s a lot of discussion about what’s called price-demand elasticity, which means, ‘When do you start hitting the point when you will significantly lower the number of out-of-state applicants?’” Arden said. “Even with this proposed rate, which is $1,800, we would be in the lowest quartile compared with our peers [institutions].”
These tuition increases come a year after the state legislature cut UNC-System funding by $66 million and assigned tuition increases at every member institution except N.C. State and UNC-Charlotte.
Tuition for out-of-state residents currently costs $21,661, according to the Office of Scholarships and Financial Aid. If the 9.2 percent tuition is agreed on by the Board of Governors next month, out-of-state residents would see their tuition increase by $1,800 in the next fiscal year.
Arden said UNC-System President Tom Ross would not approve any measures that would have increased tuition for native North Carolinians, so it was never part of the debate.
Unlike the tuition hikes set by the General Assembly, the 9.2 percent tuition increase for out-of-state students would be driven by the University, according to Arden.
In legislative increases, the universities do not gain any direct revenue, except for Campus Initiative Tuition Increases, which go directly toward academic and University programming to benefit students.
Michael Patlovich, a freshman in engineering who is originally from Florida, said that although a $1,800 price tag would add up, N.C. State’s out-of-state tuition is still much less than compared to other schools he was interested in, such as Georgia Tech and Virginia Tech.
“Obviously, I’m not thrilled that my rates will go up next year, but compared to the tuition I’m paying per year, it’s not anywhere significant enough for me to reconsider my enrollment here,” Patlovich said.
Arden said the University is still a “great buy” for out-of-state applicants.
“At the moment we’re so far below the average [cost] of our peers, and even below the average of the third quartile of our peer institutions that we feel it will not be an issue,” Arden said.
Chancellor Randy Woodson said the University is attracting more out-of-state students because of its growing reputation and its presence on “best buy” lists. Last fall, 16 percent of first-year students were from outside North Carolina, The News & Observer reported.
The higher demand is likely to support a higher price tag, Woodson said.
“We’re recognizing that we’re falling out of line with our peers,” he said. Even with the increase, he said, the rate would fall below most of N.C. State’s peers across the country.
The UNC Board of Governors will vote on these measures next month.
Arden’s statement on the matter contrasted starkly with that of UNC-Chapel Hill Chancellor Carol Folt.
