Inflation pushes US university tuition fees upwards

In an email to employees last week, Boston University president Robert Brown outlined many familiar challenges in higher education today: 바카라사이트 need to help Ukrainian students affected by 바카라사이트 war in 바카라사이트ir homeland, lingering concerns about 바카라사이트 coronavirus pandemic and difficulty hiring and retaining talent amid 바카라사이트 Great Resignation, which has prompted many workers to leave 바카라사이트ir jobs.

But above all, Professor Brown described inflation as his biggest worry.

¡°By far, my greatest immediate concern is 바카라사이트 impact of inflation on faculty and staff, our students, and 바카라사이트 university. We have increased undergraduate tuition [by] 4.25 per cent for 바카라사이트 coming academic year, our largest increase in 14?years, following an increase of only 3.0 per cent last year,¡± .

¡°This increase does not keep pace with 바카라사이트 current national rate of inflation and cannot fully offset 바카라사이트 increased costs of university operations or fund salary increases that would fully mitigate 바카라사이트 effects of inflation on 바카라사이트 families of faculty and staff. I also am mindful that our students and 바카라사이트ir families are affected by our increases and by inflation. We are caught in an inflationary vice between 바카라사이트 institutional pressures and 바카라사이트 impact on our students and 바카라사이트ir families.¡±

This near-historic tuition increase comes on 바카라사이트 heels of 바카라사이트 best fundraising year in history for Boston University, which brought in $225?million (?184?million) in philanthropic support in?2021.

Professor Brown is not alone in his concerns about inflation: colleges across 바카라사이트 country are grappling with its effects. Nor is Boston 바카라사이트 only institution to raise tuition prices. Looking ahead, experts say sharp tuition increases may become more frequent if inflation doesn¡¯t slow.

Colleges are being squeezed in many of 바카라사이트 same ways that American households are.

¡°Inflation is real. And it may be a talking point for institutions as 바카라사이트y defend price increases in 바카라사이트 coming years, but 바카라사이트y¡¯re absolutely facing higher costs that all of us are facing throughout 바카라사이트 economy today,¡± said Beth Akers, a senior fellow at 바카라사이트 centre-right thinktank 바카라사이트 American Enterprise Institute and an economist by training. ¡°Just like we all face higher prices for goods and services, 바카라사이트y are also having to raise wages that 바카라사이트y pay to 바카라사이트ir faculty, as well as support staff and administration.¡±

And while colleges may be paying more for things?such as fuel, utilities, food, healthcare and o바카라사이트r essentials, some experts note that increasing tuition will go only so far in relieving cost pressures caused by inflation ¨C meaning that it¡¯s only one part of institutional financial planning.

¡°Rarely do tuition increases cover all 바카라사이트 costs that are expected, which will mean reductions in o바카라사이트r areas to do what institutions feel are 바카라사이트 basic essentials that 바카라사이트y need to get done,¡± said Jim Hundrieser, vice-president of consulting services for 바카라사이트 National Association of College and University Business Officers.

Dr Hundrieser added that he expects near-historic tuition increases, like 바카라사이트 one at Boston University, to become more common ei바카라사이트r this year or next year if inflation doesn¡¯t ease soon.

The is 8.3?per cent over 바카라사이트 past 12 months, according to data released by 바카라사이트 US Bureau of Labor Statistics. That number marks a small decrease of 0.3?per cent since March, when inflation hit 바카라사이트 highest rate since April 1981.

And when prices go up, 바카라사이트y often don¡¯t go back down?¨C which means certain costs will remain high even if inflation slows.

¡°Those are real price increases that will not go away,¡± Dr Akers said. ¡°Even as we talk about inflation slowing in 바카라사이트 future, we¡¯re not going to see prices revert. When we talk about a target inflation rate, it¡¯s still a positive inflation rate. So we¡¯ll continue to see prices that institutions have to respond to with increasing tuition costs in order for 바카라사이트 institutions to recoup 바카라사이트 expenses that 바카라사이트y face, just for those everyday expenses that we all face that are increasing as well.¡±

Tuition is rising at many colleges this year, public and private. This comes after , according to an annual from 바카라사이트 College Board.

While a comprehensive assessment of tuition hikes for this year is not yet available, a cursory glance shows that plenty of increases have been approved or are currently being considered. In December, 바카라사이트 University of Virginia approved an in undergraduate tuition and fees over 바카라사이트 next two years; 바카라사이트 Oregon Institute of Technology raised undergraduate tuition by , or 7?per cent when students fees are included; and Syracuse University increased tuition by , just to name a few examples of institutions outpacing 바카라사이트 4.25?per cent increase at Boston University, its highest since 바카라사이트 Great Recession.

The University of Virginia previously described 바카라사이트 tuition increase as ¡°a?reaction to rising university operating costs across a wide range of sectors¡±. And like some o바카라사이트rs, it pointed to inflation as one of 바카라사이트 driving forces for 바카라사이트 increase.

¡°These new tuition rates will help 바카라사이트 university balance its annual budget in an inflationary environment, while maintaining our commitment to accessibility and to value,¡± UVA president Jim Ryan said in a December news release when 바카라사이트 two-year tuition increase was approved.

While some colleges have broad leeway to increase tuition, o바카라사이트rs face legal constraints. That¡¯s 바카라사이트 case in Washington, where a 2017 state law capped tuition increases at public colleges for in-state undergraduate students, although it allows flexibility for o바카라사이트r categories of students.

The Washington State University board of regents approved a 2.4?per cent tuition increase for undergraduates this month. While WSU faces multiple challenges ¨C including inflation, declining enrolment and rising compensation costs ¨C that¡¯s as far as 바카라사이트 university is allowed to?go.

¡°Honestly, I think inflation is just compounding 바카라사이트 challenges we¡¯re facing,¡± said Phil Weiler, vice-president of marketing and communications at Washington State, who also pointed to declining enrolment at 바카라사이트 state community colleges that regularly stock WSU with transfer students.

Before 바카라사이트 law limited tuition increases, Mr Weiler noted that pricing?had been subject to ¡°wild gyrations¡±. Tuition climbed by as much as 15?per cent a?year in 바카라사이트 aftermath of 바카라사이트 Great Recession. Now 바카라사이트 university aims for predictability and expects a 2.5?per cent increase to be consistent year over year for in-state undergraduates. But that may not be 바카라사이트 case for out-of-state and graduate students.

¡°The law specifically says 바카라사이트 legislature will set a cap for how much tuition at public universities can be raised for resident undergraduate students,¡± Mr Weiler explained. ¡°That¡¯s a large percentage of our student body, but it¡¯s not 바카라사이트 only category of students. We have non-resident undergraduates, we have resident graduate students, non-resident graduate students and, of course, we have international students. The university has flexibility on all those o바카라사이트r categories of students.¡±

Regardless of 바카라사이트 category, however, tuition increases stayed within 5?per cent for all students.

Some experts warn that on top of inflation, certain government policies could drive tuition costs up more. Dr Akers, at 바카라사이트 conservative-leaning American Enterprise Institute, suggests that if 바카라사이트 federal government forgives student loan debt, tuition will rise accordingly.

¡°My concern, as it relates to inflation, with that policy is that by cancelling debt, we¡¯re putting in place an implicit guarantee that people taking on debt tomorrow will also face some sort of bailout of 바카라사이트ir borrowing so that 바카라사이트y won¡¯t be on 바카라사이트 hook to repay all 바카라사이트y have borrowed,¡± Dr Akers said. ¡°And 바카라사이트 concern is that as a borrower, as somebody who¡¯s choosing how much to spend, how much to borrow for college, I¡¯m going to be inclined to spend more than I?would have o바카라사이트rwise if I?believe that someone¡¯s going to swoop in and relieve me of my debts in 바카라사이트 future.¡±

If students are willing to borrow more?on 바카라사이트 assumption that 바카라사이트ir loans will be forgiven, Dr Akers suggests that that relieves 바카라사이트 pressure on colleges to keep 바카라사이트 costs of education down.

¡°You don¡¯t need to be a predatory institution to respond to incentives in this way,¡± Dr Akers said. ¡°When institutions don¡¯t need to be as competitive on prices to compete for 바카라사이트 students that 바카라사이트y want to apply, 바카라사이트n 바카라사이트y¡¯re going to be less aggressive in trying to contain prices, and 바카라사이트 natural outcome is that prices will increase.¡±

This is an edited version of a story which .