Regents look at double-digit tuition increases

Tuition and fees for University of New Mexico undergraduates taking 12 or fewer credit hours would increase 14 percent next school year if regents approve a new way to charge students.

Most of those taking 13 or more credit hours would see a 10 percent increase under the plan aimed at encouraging students to take more credit hours and, thus, graduate earlier.

The proposal, criticized by several regents, would charge students for each credit hour they take instead of a block of credit hours. Currently, all full-time students — anyone taking 12 or more credits — pay the same tuition.

Under the plan unveiled Friday, students who take 12 hours would see their tuition and fees rise from the current $6,050 to $6,918 annually. Those who take 15 hours would see their tuition increase from $6,050 to $6,657.

The increase would pay for a proposed 3 percent pay raise for faculty and 1 percent for staff, along with a one-time supplemental payment of $1,000 for staff. Also, 20 percent of the revenue raised by the increase would be used for financial aid.

Currently, UNM doesn’t charge for any credit hours past 12, meaning a student who takes 18 hours pays no more than one who takes 12 hours.

The plan was introduced at the university’s budget summit Friday before the regents finance committee, composed of Jamie Koch, Gene Gallegos and Conrad James. It was met by resistance from several regents, including those who are not on the committee but who attended the meeting.

The proposal didn’t have enough votes to go to the full board with a recommendation, but the board will still review it at its meeting Tuesday.

Gallegos, the most ardent dissenter, said the new plan would create a hardship for students. He said asking for such a large tuition increase is “a big, tough one to swallow.”

But the administration said the plan would greatly benefit the school in the long term. For example, officials believe it would increase the six-year graduation rate, which is at a little more than 45 percent. That’s about 10 percentage points below the national average.

The school wants to increase that figure to 80 percent, while also increasing the number of students who graduate in four years. The four-year rate is 15 percent, and UNM eventually would like to raise it to 40 percent.

President Bob Frank said the current tuition block model is outdated and has outlived its purpose.

Charging less per credit hour to those students who take heavier loads provides incentive to stay on track and finish their studies faster, administrators say.

“Most importantly, the student will spend less money when they’re here, and they will be happier and they will graduate with less debt,” Frank said.

Provost Chaouki Abdallah said the increases wouldn’t have that large an impact on students because the university plans to increase the aid it hands out to students in need. Most UNM students pay a small portion of tuition out of pocket, thanks to the lottery scholarship and institutional aid, Abdallah said. He said the average student pays about $1,500 per year.

However, the lottery scholarship fund is struggling to stay solvent. Lawmakers this year approved a temporary fix by adding money from a different source.

Student regent Heidi Overton said she supported the culture shift the administration is trying to achieve, but had concerns about the accompanying cost. She used the example of a student who decides to take 15 credit hours instead of 12, but ends up having to drop one course. The student would then have to pay the university more money.

“I agree with Regent Gallegos (that) those are big increases for a student to see from one semester to the next,” Overton said.

Frank disagreed.

“If we’re going to change the culture of students that come to this university, we’re going to have to demand more of our students,” he said.

But even if regents don’t approve the tuition block changes, an increase is still likely. Several regents support increasing employee compensation, especially after four years of no raises. They’re particularly inclined to give an increase to faculty members, who earn significantly less than faculty at similar universities.
— This article appeared on page A1 of the Albuquerque Journal