Cost of Penn education to rise 3.9 percent

Although the cost of going to Penn surpassed the $50,000 mark last year, it’s about to go even higher.

Undergraduate tuition, fees, room and board will likely total to $53,976 for 2011-12 — a 3.9 percent increase from this year’s $51,944.

This increase — like last year’s 3.9 percent rise — signifies the second-smallest raise in tuition in 43 years, Vice President for Budget and Management Analysis Bonnie Gibson said, only behind the 3.8 percent hike in 2009-2010.

The increase in total charges was approved at Thursday’s Budget and Finance Trustee Meeting and is waiting to be approved by the full board at Friday’s Stated Meeting.

Despite the tuition hike, Penn plans to expand its financial aid budget by 7.7 percent, or $10.7 million, to a total of $161 million — an all-time high, Director of Student Financial Aid Bill Schilling said.

The move will allow Penn to “maintain and strengthen” its existing aid system, he said.

“Penn’s financial commitment to families who qualify for need-based financial aid is in place — with no loans,” Dean of Admissions Eric Furda wrote in an e-mail. Penn has offered loan-free financial assistance for students who qualify for aid since 2009.

For regular-decision applicant Steve Smith, who attends Absegami High School in Galloway, N.J., financial aid will be a “a really big factor” this April in deciding which college to attend. He said his decision will be based on “a combination of both financial aid and academics, but I think that the financial side is weighted more heavily.”

Schilling said that his office budgets for financial aid based on trends in national unemployment and federal budgeting for higher education.

This year, 42 percent of undergraduates received need-based grants.

College freshman Hillary Barlowe, who receives full financial aid, said she hopes the University will keep financial aid accessible to students who need it as tuition rises.

The increase in tuition comes along with an extensive plan to invest in student life projects, including renovation of Kings Court/English House and 1920 Commons as well as expanded dining options at McClelland Hall in the Quadrangle.

Penn’s tuition increases are generally comparable to its peers, Gibson said. Yale University recently announced a 5.8 percent increase in total charges, while Cornell University reported a 4.75 percent raise in tuition.

Gibson added that Penn’s annual increase in tuition is typically smaller than that of most private and public universities.

Executive Vice President Craig Carnaroli said the University tries to “maintain market competitiveness” in the field of higher education, which often impacts changes in tuition.

Vanessa Lam, a senior at the Crofton House School in Vancouver who was admitted to Penn through early decision, said she did not apply for financial aid because she didn’t think she would qualify, as her parents were “above the income bracket.”

However, the high price of a Penn education has her planning ahead for next year. “I want to help offset the cost as much as possible,” she said. “It’s a great education, but it’s a pretty expensive education.”

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