Elon University is proposing a 3.9 percent tuition increase for the upcoming academic year, as well as increases in room, board, Student Government Association and health fees. The university will present the proposals to members of Elon’s Board of Trustees this week.
If the Board of Trustees approves the proposed increases, Elon’s total cost of attendance will equal approximately $40,000, a 4.13 percent increase from the 2012-2013 academic year. The business and finance committee of the Board of Trustees will review the proposals this week, and the entire board will approve, deny or amend the proposals next week.
Elon’s total cost of attendance has risen steadily since 1989 to support the growth of the institution and enhance its learning environment. If approved, next year’s increases will generate revenue to advance the Elon Commitment, a strategic plan promote academic excellence and expand residential areas on campus. The additional revenue will also be used compensate the university’s faculty and staff, according to Gerald Whittington, senior vice president for business, finance and technology.
“As we want to grow as an institution, we need to keep our small class size and maintain that personal attention given to each student,” he said. “We have the constant issue of trying to compensate our folks for the work that they do.”
For some students, even a modest bump in tuition cost will increase their financial burdens after graduation.
“Tuition increases won’t affect me right away, because I’m not paying everything out of pocket right now,” said junior Tyler Molinaro, who shares the cost of his student loans with his parents. “It will affect me later, though, because it’s more I’ll have to pay back.”
The proposals are also a preemptive measure to offset the impact of a potential tax code reform in North Carolina. During the 2013 legislative session, which began Jan. 30, the North Carolina General Assembly will attempt to jumpstart the state’s sluggish economy by building a new tax structure to promote business development and economic sustainability.
The State Business Tax Climate Index recently listed North Carolina as one of the worst business tax climates in the country, and Republican lawmakers are considering eliminating the state’s corporate income tax to improve its standing. They may abolish personal income taxes, too, in exchange for higher sales taxes on all transactions, including those that are currently tax-free. The Tax Foundation in Washington, D.C., which produces the State Business Tax Climate Index, also proposed four reform options after reviewing the state’s tax structure.
If the state eliminates personal and corporate income taxes, it will likely repeal the sales and property tax exemptions currently afforded to many non-profit institutions, including Elon. Such a repeal would cost the university $3.5 million annually, according to Whittington.
“We don’t know what the legislature is going to do,” Whittington said, “But if they do what many are suggesting they do, we feel this is a necessary measure to recover that expense.”
If the proposed increases are approved or modified, Elon’s total cost of attendance will remain relatively low compared to many private colleges. John Martin, a prospective student from Berwyn, Pa., said an increase in the cost of attendance would not affect his interest in the university.
“For me, my dad made it clear that my student loans will be my debts,” he said. “He said he will help me the best he can, but they will be my responsibility. One thing that really attracted me to Elon was its relatively low tuition for a high quality education. If Elon’s base tuition wasn’t so much lower than other schools, I might have a problem with an increase, but compared to other schools that I could go to, it’s still not a huge difference.”