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The UNC System is considering increasing the cost of attendance at public universities across the state — and no, you don’t have déjà vu.
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For the second year in a row, the system will allow universities to propose tuition increases of up to 3% for in-state undergraduate students.
It’s a significant pattern for a state university system that prides itself on affordability. Last year’s increases came after nine straight years of flat tuition rates across the UNC System.
Campuses will now be allowed to propose the second-straight year of tuition hikes. The UNC System Board of Governors will review and vote on those new proposals this winter. The increased costs, if proposed and approved, would take effect for incoming students in the 2027-28 school year.
These potential hikes may be necessary to address inflation, Jennifer Haygood, the system’s chief financial officer, said at a Board of Governors budget committee meeting Wednesday. The system’s challenge, she said, is balancing “affordability for students and families” while “ensuring financial sustainability for our institutions.” Her presentation noted that in the face of inflation, real-dollar costs for in-state undergraduates fell by more than $2,000 between 2016 and 2026.
Last year, most schools took the system up on the highest allowable percentage increase to tuition. The system estimates those increases will bring in more than $20 million by the time the full effects are felt in 2030. A second 3% increase could add up to a maximum of $43 million in new cash for the system by 2031.
Despite those large numbers, not all members of the Board of Governors at Wednesday’s meeting feel good about the decision. Board member Art Pope, a conservative businessman and political donor, was particularly perturbed.
Pope said he was under the impression that last year’s increases were a “one-time” hike tied to the lack of a state budget.
“Now I’m afraid that one-time is going to become routine,” Pope said. “… I think we should go back to our original goal of keeping tuition flat.”
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Pope pointed out that inflation affects every part of the economy, not just university budgets. Working families in North Carolina “have less money to spend and prices are higher,” Pope said.
“Every little bit hurts when you have to pay more,” he continued.
Board member Woody White, a lawyer in Wilmington, agreed.
“It is a green light sending a message to every campus to raise tuition, and I predict that most will come forward with a 3% request,” White said. “I hope we will be diligent in reviewing that.”
But to board member and Cary businessman Swadesh Chatterjee, it’s just not realistic to keep tuition flat — especially considering the raises required by the state’s new budget.
“We are increasing the salary of every employee in the system. Our construction costs [and] our cost to operate the universities is increasing day by day. We have inflation, which is also is to be considered,” Chatterjee said. “I think it is very difficult for state universities to sustain keeping the tuition flat, and the amount of increase we are talking about is nothing.”
Haygood said she is wary of relying on tuition increases as a solution to financial pressure, especially since they take four years to fully play out. “We need to recognize that tuition increases is not a practical solution to solve an immediate financial issue,” she said. “It must be part of a broader, sustainable, long-term financial plan.”
If a school takes full advantage of the tuition increase again this year, in-state undergrads starting next year would pay more than 6% higher tuition than those entering just a few years ago. Fees may increase again as well.
There is no limit, this year or last, on increases schools can propose to in-state graduate school tuition, but the system is asking schools to be mindful of the graduate school loan caps that went into effect this year. There is also no limit on increases to out-of-state tuition. Campuses must justify their need to raise costs, however, and show it won’t negatively impact enrollment.
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