Proposal to Shift to Per Credit Hour Tuition with Enrollment Incentives and Time of Day Discounts

The University of Oregon is facing a dual challenge in ensuring student access, due to increasing enrollment and decreasing state support. The first challenge is “How can we accommodate, within the existing campus facilities, the increasing numbers of students who seek a University of Oregon Education?” The second is “How can we, at the same time, respond to the needs of our students to maintain affordable tuition in the face of reductions in state support?”

In an attempt to respond to these challenges, we are designing a new access-based tuition model. In designing this model, we are using the principles outlined below, which address both the problems of access caused by the physical limitations of our facilities and of the increasing cost of education.

1. Spread classes, and hence students, more evenly throughout the day, and in some cases into the evening and weekends, thus allowing UO to accommodate the increasing enrollment.

2. Spread tuition more equitably over all students.

3. Provide lower cost tuition alternatives, thus enhancing access.

4. Provide more choices for students, in terms of cost, time of day, and numbers of available courses.

These principles were developed in recognition of the factors described below, which affect access for UO students.

1. Significant new state funding will not be available to expand current classroom facilities to allow for increasing student enrollments in peak demand times. Without an increase in the number of classes, overcrowding and decreased quality of the student experience will occur and we will likely be forced to limit enrollment of otherwise qualified students. Therefore, UO must optimize the use of classroom space throughout the day, and in some cases into the evenings and weekends.

2. Tuition will be an increasingly important source of revenue to the university given the reality of limited state funding. As a percentage of the University’s overall expenditures, state funds now compromise only 18% of the University of Oregon budget and this percentage will decrease with the implementation of state budget cuts.

3. University of Oregon still has classroom capacity in the late afternoon and early evening, as well as on weekends. More students can be accommodated without added building costs if sufficient demand can be shifted to these times when classrooms are available.

4. Availability of classes later in the day would make University of Oregon programs more available to students who work during the day.

5. Lower cost tuition alternatives would increase access to higher education for those students for whom the primary barrier is cost. In addition, the current tuition structure is such that part time students are effectively subsidizing full time students.

The proposed tuition structure can be understood by looking at the following tables. These tables are constructed assuming an average tuition increase of 4%. We are not making a specific request for a tuition increase at this time, but estimate that when the request for an increase is made it will be in the range of 3-5%.

Table 1 shows the amount students will be charged for each level of enrollment between one and twenty-one credit hours and compares it to the charges they would receive under the existing plateau structure. Column 1 shows the number of credit hours for which students enroll, while column 2 shows the per credit hour charge. Starting at the 13th credit hour students receive an enrollment incentive (col. 3) creating a tuition plateau between 13 and 16 credit hours. The net tuition shown in column 4 is compared to tuition under the existing structure in column 5. The information is repeated for non-resident students. This table is constructed under the assumption that all credits are taken at non-discounted rates.

As you can see, students who enroll for 1 to 12 credits are paying less than under the current structure. Students who enroll for 12 credit hours will pay slightly higher tuitions, but can reduce these costs by enrolling for classes offered with time of day discounts. These discounts will be offered on all classes starting at 3 p.m. or later and in this example offer a 16% discount over the per credit hour cost of classes scheduled earlier in the day.

Table 2 gives examples to demonstrate tuition charges for four students who enroll in different combinations of classes offered at regular rates and at discounted rates. The four enrollment levels are seen across the top of the columns (8, 12, 16 and 18 credit hour schedules). Row A shows the tuition charge for each schedule under the existing structure. Row B shows the charge if all courses are taken at regular cost under the proposed structure. Row C1 shows the tuition charges if each schedule is modified by taking 4 credits at discounted times. Row C2 shows the tuition for the same schedules with 8 hours taken at discounted rates. Also shown are the dollar and percentage changes for the new plans compared to existing plans.

Table 3 shows the tuition charges for any combination of credit hours taken at regular and discounted rates including the enrollment incentive for carrying loads of 13 or more hours. For example, a student taking 16 credit hours, 12 at regular rates and 4 at discounted rates, would pay tuition of $968. This table or something similar will be available on the web to help students plan their schedules.