Fixed Tuition

"The usual version of that proposal assumes that students enroll full-time at a given tuition level, then sail through, full-time, unimpeded, until their on-time graduation. The benefit to the students (and their families) is obvious, both in terms of absolute amounts of money and in terms of predictability. As a parent who has been paying out-of-state tuition since 2019, I get the appeal."

"Of course, the rest of the economy doesn't freeze costs for years at a time, and college employees live in that economy. So annual tuition increases would still have to happen, but they could only be inflicted upon new students. In any given year, freshmen would pay more than sophomores, who would pay more than juniors and so on. The first year that happened, the increase for freshmen would have to be pretty dramatic to ensure that future years would generate enough revenue."

"For example, Pennsylvania hasn't even passed its budget yet for this year. You know, the one that we're several months into. Uncertainty rolls downhill; asking us to guarantee years in advance when we don't even have this year's figure yet isn't realistic. In its defense, the state is dealing with a federal funding situation that could be described as mercurial. Higher ed funding at the state level competes with other priorities, such as the state versions of Medicaid."

Guaranteeing that tuition remains fixed for enrolled students aims to provide predictable costs and planning for families. The proposal typically assumes uninterrupted, full-time enrollment to on-time graduation. Real economic conditions prevent freezing costs, so annual tuition increases would still occur but be applied only to new cohorts, creating staggered cohort pricing. The initial cohort increases would need to be large to cover revenue shortfalls unless state subsidies or other funds fill gaps. State budgets are often uncertain and compete with priorities like Medicaid, and federal funding can be mercurial. Using variable revenues to cover fixed costs is risky, while large endowments can smooth tuition at elite institutions.

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