The Board of Trustees approved a 3.5 percent increase in next year's undergraduate tuition-the lowest rise in 33 years. At their Feb. 26 meeting, the Trustees also announced small improvements in two minor components of undergraduate financial aid.
Feeling the benefits of the thus-far-successful Campaign for Duke, the Board also endorsed a plan to increase the University's unrestricted operating budget for undergraduate financial aid by 5.6 percent, pushing it over the $25-million mark. Gifts and endowment support should make the total more than $30 million.
Although the University's financial aid program continues to improve, said President Nan Keohane, Duke's programs are still dwarfed by those of other prestigious institutions.
Earlier this academic year, Harvard, Princeton, Yale and Stanford universities and Dartmouth College all announced massive improvements aimed at low- and middle-income students.
Two weeks ago, Brown University announced a $5-million expansion that gives larger grants to students entering after 2003, ensuring that they graduate with fewer loans.
Because of Duke's smaller endowment, Keohane said, the institution is forced to pay for about 80 percent of its undergraduate financial aid out of the operating budget. The Campaign for Duke will boost the endowment in the long term, she said, but can currently provide only a little budgetary freedom.
"At this point, [The Campaign for Duke is] allowing us to be more generous and is providing a bit of budgetary relief," she said, "which is the ultimate goal."
Specifically, the Trustees agreed to ignore outside scholarships when calculating financial aid packages. This change will allow students to take advantage of their outside scholarship opportunities without being penalized as a result.
Families with a combined income of less than $40,000 will also have their packages adjusted to include more grants and fewer loans. The first $2,000 in loans will be replaced by a University-backed grant.
Loans may place an undue burden on low-income families, Keohane said. She added that high monthly loan payments may make it impossible for low-income students to pursue non-lucrative careers after graduation.
A loan of the same amount could place a substantially lesser burden on a wealthier family, she said. "Treating people equally may not be treating people exactly the same."
Continuing third- and fourth-year students will pay $23,210 in tuition, an increase of $790. Under the two-tiered approach adopted by the Board last year, tuition will be higher for incoming students and rising sophomores than for juniors or seniors.
Tuition for students entering this year or who matriculated last fall will rise by $830. The additional funds from this increase will be used to strengthen five undergraduate programs, financial aid and faculty development.
"When we got approval for the two-tier increase last year...," Keohane said, "it was with the understanding that we would be very careful about tuition increases in the ensuing years."
Mandatory fees next year will be $711 and room and board will be $7,088 for two semesters, marking a 2.3 percent increase.
The total price for continuing third- and fourth-year Trinity students next year will be $31,009, an increase of 3.2 percent.
Tuition for all engineering undergraduates will be $24,130.
"Not all schools have announced their [tuition] increases yet," said Roy Bostock, Trustee and chair of the business and finance committee. "But our increase is in line with the five universities that have already reported."
when calculating financial aid packages. This change will allow students to take advantage of outside scholarship opportunities without being penalized as a result.
Families with a combined income of less than $40,000 will also have their packages adjusted to include more grants and fewer loans. The first $2,000 in loans will be replaced by a University-backed grant.
Loans may place an undue burden on low-income families, Keohane said. She added that high monthly loan payments may make it impossible for low-income students to pursue non-lucrative careers after graduation.
A loan of the same amount could place a substantially lesser burden on a wealthier family, she said. "Treating people equally may not be treating people exactly the same."
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