MSU raises tuition 2% for students from households that make at least $100,000

Correction: At least 11,000 students will not see a tuition increase. An earlier version of the story incorrectly stated the number of students affected. 

EAST LANSING — The bills for Michigan State University’s students from wealthier households will grow next fall in MSU’s first tuition increase in nearly four years.

The MSU Board of Trustees approved a 2% tuition increase by a 5-3 vote for students coming from families with incomes of more than $100,000. That equates to an additional $290 per year for incoming freshmen living in Michigan.

At least 11,000 students would not see an increase through financial aid and COVID-19 relief funding, according to MSU spokesperson Dan Olsen.

The new tuition rate amounts to about $14,814 a year. Rates will remain the same for the rest of MSU’s students.

Accompanying the rising tuition rate is a $204 annual increase in room and board costs, or roughly 1.95%, following a two-year rate freeze. MSU President Samuel Stanley Jr. said the increase would generate $2.7 million in additional revenues for dining facilities and would remain the second-lowest rate among Big Ten universities.

Rates at university apartments will not change.

“The board and the administration are very cognizant of the financial stresses students and families have experienced through the COVID-19 pandemic and I appreciate the thoughtfulness of our board members over the last few months while we discussed many budget implications, alternatives and scenarios,” Stanley said. “This tuition plan, part of a three-year budget, helps us give the university the support it needs and offers Michigan State University, our students and families a greater degree of certainty about future costs.”

Trustees also agreed to phase in an annual student recreation fee starting at $100 next year and reaching $260 in three years. The fee would allow MSU to improve recreational facilities with some improvements coming as soon as spring of 2022. MSU currently is the only Big Ten university that doesn’t charge students a recreation fee, according to Stanley.

MSU general fund financial aid for students will increase along with the tuition and room and board rates, Stanley said, with an increase of $3.8 million.

More than a year ago, Stanley predicted MSU would lose hundreds of millions of dollars in revenues because of COVID-19 and he was right. According to Stanley, the university lost about $430 million in revenue during the pandemic, mostly through lost housing, athletics and other auxiliary revenues. 

A decline in international students unable to travel to campus amounted to another $50 million drop in general fund revenues. 

Federal COVID-19 relief funding, university reserves and additional cost-cutting covered the lost revenues, Stanley said. 

“This budget recognizes the need to continue enhancing the student experience and supporting an excellent faculty and learning environment while remaining affordable for our students,” said Dianne Byrum, chairperson for the MSU Board of Trustees.

Contact Mark Johnson at 517-377-1026 or at majohnson2@lsj.com. Follow him on Twitter at @ByMarkJohnson.