taxguy

Starting this year, CMU will be instituting tiered tuition. For new students the tuition will rise by a whipping 8% to over $34,180, making them among the top 20 most expensive schools in the US. Existing students will see an increase of only 4%. CMU announced that they are doing this for increased initiatives such as more financial aid. Thus, if you are paying "full freight," you can have the pleasure of feeling much more shafted than ever. I guess since they have a 20% increase in applications, they feel that they can raise tuition significantly.

Here is a copy of their news release:

PITTSBURGH—Carnegie Mellon University has announced a tiered tuition increase for incoming and current undergraduate students for the 2006 fall semester. Entering students will see an eight percent increase in undergraduate tuition to $34,180. Students who entered Carnegie Mellon in 2003, 2004 and 2005 will see a tuition increase of 4.4 percent to $33,050. Carnegie Mellon has used a tiered tuition approach in the past for students already enrolled at the university.

In 2006, room costs for all students will increase 4.9 percent to $5,440 and board will increase 2.8 percent to $3,800. The university's Board of Trustees authorized the increase at its Feb. 17 meeting.

Carnegie Mellon will continue to assess a technology fee of $150 to upgrade and support the university's innovative computer networks.

One of the nation's top research universities, Carnegie Mellon uses tuition to sustain and grow the kind of programs that allow it to compete for outstanding students and faculty. Tuition also supports the expansion of undergraduate education initiatives and the continuous improvement of student facilities.

Competition for a spot in Carnegie Mellon's freshman class continues to intensify. As of Feb. 1, Carnegie Mellon reported a record 20 percent increase in applications. More than 18,493 prospective students applied for the 1,360 spots in its first-year class.

"We aim to offer the best possible learning environment for our students," said Carnegie Mellon Vice President for Enrollment William Elliott. "The student experience here extends beyond the classroom into all aspects of student life. Tuition helps to fuel a very positive experience for our students and provides them with a strong start on their futures."

Elliott said that more than half of Carnegie Mellon's students receive some form of financial aid. "It is very important for us to be able to reach out to students interested in the great experience of a Carnegie Mellon education."

AcceptedAlready

20 percent increase? Jesus...

Anyways, most full paying applicants and students are not affected by this. Many who pay full price are international students and of course rich students. They are alerady paying an overall 40-50k a year already and a 2k increase will not likely hurt them at all.

I think this is pretty important for CMU to do as we can now offer more money to people who need it. We are taking the 2k from the internationals and the rich and basically allowing it to go to the poor (who may very much decide to come to CMU based on a 2k or so increase in financial aid).

Like you said, more than half of CMU students receive some form of financial aid and I believe that this increase is infinitely more beneficial to applicants than it is detrimental to.

taxguy

Acceptedtocollegealready, what you say MAY be true,but if you are the US student who isn't receiving aid, it probably won't make you feel warm and furry.

Also, you note that mainly foreign student pay full price. Where do you get your facts? What about some American students?

AcceptedAlready

Are you serious? You know internationals are not applicable for U.S. financial aid right?

AcceptedAlready

PS: I just talked with Disha Shah (international indian who goes here). Besides Harvard, if you apply for financial aid that is like saying "plz reject me". I know 4 other korean internationals who are also paying full price.

Do you even go here? Are you just randomly trolling because if you went here at ALL you would know a few internationals and you would know NOBODY gets financial aid.

Prove me wrong and PM me a name so I can contact them.

taxguy

Accepted, I am a father of a prospective freshmen there. We have had three kids get into CMU from our high school, and none of them, to my knowledge, has received any merit based aid. One got need based aid, however. My point is that foreign students aren't the only ones paying full freight.

AcceptedAlready

That is true but please let me summarize.

1. Internationals pay full price anyways. A 2k or so increase will not affect them much at all. Disha for example, would've came here whether tuition was 30k-50k. Now, why should internationals benefit off private universities? This is a private institution and it can look out for its own interests.

Lately, international applicants have risen and many of these applicants are more and more qualified. From my knowledge in economics, we can examine a Price Elasticity model. With the increase in DEMAND, we can increase PRICE to thus gain the maximum profit. With international applicants, their PRICE ELASTICITY is less than 1 so it is INELASTIC. This means that you can increase profits by raising price since quantity will decrease at LESS of a percentage than price will increase. With the increase in qualified international applicants, the increase in tuition is basic business logic.

2. Like you said, more than half of students get financial aid and those that don't would not likely care about a 2k increase. I would not like to give out names though I can pm some to you if you want. These students will tell you that they do not care about the increase and are happy for it if their 2k can allow a less fortunate and VERY qualified applicant to come to Carnegie Mellon.

Obviously there are always some complains about any kind of tuition increase but I believe that using this system to give more financial aid and incite more matriculations is not only moral but logical.

2331clk

I really don't think the amount of the tuition increase has anything to do with taking "more from the rich and giving to the poor" though that may be a small relatively inconsequential result of the increase. Tuition is set by a complex set of circumstances (taxguy is well aware of this I can assure you) that takes into account endowment, faculty salaries, cost of living, physical plant upkeep...on and on and on. CMU isn't trying to randomly screw people...with their relatively small endowment this is what they feel they must charge to provide a first class education and compete with richer and better known universities.

I am under the impression that international undergrads at CMU pay full freight. Since there's a high %age of non-US at CMU, I believe it's something like 12-14% that's a lot of income for CMU right there which i think was Accepted's point. If you take out the internationals it's more like 60% of Americans get aid if my logic is correct, not a bad number.

Also the tuition is very high but remember schools like Ursinus, Gettysburg, Syracuse etc (there are plenty) which have nowhere near the reputation of a Carnegie Mellon are probably in the 40K per year range.

taxguy

Acceptedcollegealready notes,"These students will tell you that they do not care about the increase and are happy for it if their 2k can allow a less fortunate and VERY qualified applicant to come to Carnegie Mellon"

Also 2331clk notes,"you take out the internationals it's more like 60% of Americans get aid if my logic is correct, not a bad number. "

Response: I bet most of the parents, who pay the bills, care about paying more than they should to subsidize those that get a subsidy. In addition, the subsidy isn't just 2K,but it is 2K more per year!

As far as knowing that 60% of US applicants get aid, maybe I am not that egalitarian. If my daughter gets admitted with zero aid, it won't sit well with me that I am heavily subsidizing ( considering CMU's lack of sizable endowment) some other kids.

I guess the old saying that," When you rob from Peter to pay Paul, you can always count on the support of Paul," is still true.

AcceptedAlready

I know that the increase will cause debate and criticism from parents and students alike, but right now Carnegie Mellon has really rised in prestige and selectivity.

A 20% overall university increase (with programs like Tepper rising even faster) is truly remarkable right now (Ivy leagues this year have reported increases in 8-11%). As you know, CMU's endowment is not rising as fast as its prestige, and so with the basic concepts of economics, a rise in demand (of 20%) requires a rise in price The fact that they are using this increase to help finance qualified students is a plus and is overly beneficial to the university.

Please think of it as an investment. Your extra 2k will go a long way in making your Carnegie Mellon degree that much more valuable. If you choose to pay it, you will reap the benefits .

I do not agree with you when you say "it won't sit well with me that I am heavily subsidizing ( considering CMU's lack of sizable endowment) some other kids". Most of these "other" kids are going to be IN DEBT and taking out loans regardless. CMU is just allowing them (most times matching) the offers of other schools. If someone is very qualified to attend CMU, it is beneficial to the University that they attend.

Lastly, I'm sure your daughter will be qualified for aid if she needs it. If not, I'm sorry this increase has affected you (though it affects me too) in choosing Carnegie Mellon. I truly believe the education and rising prestige/selectivy at Carnegie Mellon is worth more than the small increase in price (especially when the money is going to go to the raising of the prestige and selectivy of CMU even more).

lkf725

This really makes me glad my son didn't go to CMU (in some ways). We got nearly no financial aid and we really couldn't afford the COA. Now, we really REALLY couldn't afford it.

The extra tuition money is certainly not going to help the poor or middle class afford CMU. It is going to sustaining and growing programs, programs that have very little impact on undergrads, except for the CMU reputation in general.

AcceptedAlready

Read that quote more carefully. They are using it to compete for outstanding STUDENTS and faculty. Competing for outstanding students means MONEY spent on them.

How do you know they are the money just for grad school? We recently had some important people come to New House (where I live) to speak to us about spending/suggestions/and CMU life. They seem very focused on us and I doubt they are trying to screw ugrad in order to benefit grad.

As a side note, may I ask why a random parent who had a kid apply to CMU would still be lurking on the CMU boards?

taxguy

AcceptedtocollegeAlready asks,"
As a side note, may I ask why a random parent who had a kid apply to CMU would still be lurking on the CMU boards"

Response: Frankly it's none of your business. Do I make that plain enough. However, if you must know or care, I wanted everyone to be aware of the new tiered tuition by CMU. Moreover, as a parent who might be spending $34,000 a year and more, I am a concerned party.

lkf725

Accepted,
None taken. I did not mean to say that anyone is trying to screw undergrads. It is just my impression that at big research universities (not just cmu), the undergrads may not get their due. Funding that research and bringing in renowned faculty is important and expensive. It bolsters the school's reputation and attracts undergrads and grads alike. I certainly didn't get the impression that the extra revenue from increased tuition was earmarked for offsetting the tuitions of needy students. It will be interesting to see what improvements, if any, result. And certainly, you as a student are in the best position to judge that.

BTW, it really doesn't matter who "lurks" where, and I have interest in the new tiered tuition structure also.

AcceptedAlready

Misunderstanding here as I was responding to lk since his son now goes to U.pitt. Unless his son was planning on transferring to CMU, I was wondering how this situation affected him.

I perfectly understand your situation as the article you've posted is quite relevant to this board as well as to your immediate situation. That is why I have invested my time to try and help alleviate some of your concerns.

To summarize, I believe that the increase in tuition should be seen as an investment, not as a subsidy to other students. I wish our endowment was growing as much as our reputation but it is not. To rectify this situation, a tuition increase seems to be moving in the right direction. 20% increase in apps and Tepper's rank movement to 5th was probably the last straw that broke the camel's back.

Hope this helps.