Sticker shock hits college students

Wayne State's 18% hike in tuition and fees is latest jump in Michigan.

Marisa Schultz and Tony Gonzalez / The Detroit News

DETROIT -- The cost to attend Wayne State University jumped nearly 18 percent Wednesday, adding the university to a growing list of Michigan public colleges that have hiked tuition in recent weeks and potentially put college out of reach for more students.

In all, 14 Michigan public universities have raised tuition on average 11.2 percent for this fall. Coupled with room and board increases, a typical undergraduate will pay on average $1,200 more to earn a public education.

For Krista Paulin, 18, of Shelby Township, the $700 more per year in tuition she'll pay as a freshman at Grand Valley State means she will have to reconsider plans to study abroad, needs to find a job and won't replace the 1999 Pontiac Sunfire that recently "blew up" on her.

"Now that tuition was brought up my parents were just like, 'Can you wait?' " Paulin said of getting a new car. "I'm kind of mad. I want a car, it's kind of hard not to have a car at my age."

The tuition jumps are regrettable, but necessary, university leaders say, in light of an unresolved state budget crisis and five years of appropriation cuts.

If the state continues to withhold funds from colleges, leaders say they'll consider midyear hikes.

"It's not an easy matter for any of us to create additional economic pain for people," said Wayne State board member Paul Massaron, who voted Wednesday for a tuition rate that has doubled since 2000.

"The disinvestment of higher education in Michigan is deplorable. (But) we have to keep this place operating."

Hikes as high as 21%

The extra hundreds of dollars can price potential students out of an education and increase unmanageable debt burdens, said Jennifer Pae, president of the United States Student Association.

"It really hinders the ability of students to succeed and to graduate," Pae said, noting that already 200,000 U.S. qualified high school graduates forgo a university education because of costs.

Gordon Chaffin, 18, of Shelby Township said his tuition payment bill has already changed.

"In the end it may mean I take another loan out, but we're still making do," said Chaffin, who plans to attend the aUniversity of Michigan.

All but three Michigan universities raised tuition notably higher this year than last; Ferris State's rate for returning students, U-M Dearborn and U-M Flint are the exceptions.

Hikes range from a low of 5.8 percent at Western Michigan University to a high of 21 percent at Central Michigan University, which under the CMU Promise locks in rates for up to five years.

Sandra Paulin, 51, mother of Krista and Nicolas, a senior at CMU, is considering changing Krista's housing option for a lower rate.

"We're one of the crazy parents that are paying for the tuition," Paulin said. "I hope it doesn't increase any more."

Debt load gets heavier

Students graduating from Michigan's public universities in 2005 owed on average $18,526 in loans, according to the Project on Student Debt, putting Michigan 14th in the nation. But the scenario has gotten worse.

From 2001-06, Michigan reduced higher education spending dollars to universities more than any other state in the country, according to an Illinois State University study. As a result, the tuition cost for Michigan's 15 public universities shot up 37 percent over four years to become the nation's fifth most costly, according to a report released earlier this year by the state auditor general.

University leaders say they've had no choice but to reduce their costs and raise tuition. At Wayne State, leaders imposed a 12.8 percent tuition hike and an additional $13 per credit hour fee on Wednesday. If the state repays the university the full $20 million it's withheld in payments, then Wayne State would remove the fee next semester.

"It's unconscionable what the state has done to higher education generally and to us in particular," said Eugene Driker, a board member at Wayne State, where leaders have kept tuition lower in return for a larger state appropriation, he said. "All of us should be screaming out loud that higher education be properly supported."

State leaders are asking for patience. To close a 2007 budget hole, the state is withholding August payments to universities and permanently reduced their base appropriation. The state budget director told university leaders they'd get the August payment back in October, but colleges are leery since the state has yet to find a solution for 2008 budget that's riddled with more shortfalls.

"The Senate has clearly expressed to university officials that we're working daily to fix a complicated economic crisis in Michigan and they must understand the problems before the state impact all of Michigan and not just the universities," said Matt Marsden, spokesman for Senate Majority Leader Mike Bishop, R-Rochester. "Finding long-term solutions to the problems Michigan faces is complicated and requires patience from institutions."

In the meantime, universities are reducing costs -- nearly $120 million at U-M and $70 million at MSU in five years, and $28 million at Oakland in 10 years.

Wayne State needs to cut $9.1 million this year alone, despite the tuition increase, to balance its budget. That means bigger class sizes and shorter library hours.

"We can't make cuts of the magnitude of $9.1 million and not expect some adverse impact on the university," said Provost Nancy Barrett.

Federal aid hasn't kept pace

The tuition hikes come at time when federal financial aid has not kept pace with the rising costs of education. At one time Pell Grants, which are scholarships to the neediest students, covered two-thirds of the cost of unmet need for students, but now that's just one-third, Pae said.

And caps on federal student loan borrowing has forced students to turn in droves to private loans, which traditionally don't have as generous interest rates and repayment options as federally subsidized Stafford loans.

But there is some relief this year. The maximum Pell Grant has increased to $4,310. And for the first time since 1992, federal Stafford loan limits for freshmen and sophomores have risen. However, caps on upperclassman lending remain at $5,500 and the total cap still remains at $23,000. Universities also increased their own grants for the neediest students.

"We are trying to make sure we provide access to students who won't be able to afford the increases in tuition," said Cindy Hermsen, director of financial aid at Oakland University.

You can reach Marisa Schultz at (313) 222-2310 or mschultz@detnews.com.