Contact: Monty Jones, (512) 499-4363

Date: November 18, 2003

UT System News Release

Financial Aid Plans and Incentives Will Help Students Pay

AUSTIN - Tuition increases approved by the University of Texas System Board of Regents on Tuesday (November 18) include a wide range of financial aid programs and new incentives that will help students afford the higher tuition rates.

One of the broadest elements of the tuition plans is a provision to set aside at least 20 percent of new revenues for grants and scholarships for students with financial need. Institutions are committed to providing additional funds as needed to meet the need.

U.T. Austin, for example, will set aside 28 percent.

Other financial aid provisions at various campuses include:

• A "We've Got You Covered" plan that holds harmless all lower-income students, so that the full cost of the increases will be covered (all campuses).
• Guaranteed tuition discounts for middle-income students (U.T. Austin).
• New campus-based work-study programs, in addition to the federally financed program (U.T. Dallas, U.T. El Paso, U.T. Tyler).
• New grant programs for students who attend full-time (U.T. Dallas).
• No-interest loans to help students buy books at the beginning of a semester (U.T. El Paso).

The plans also include a variety of incentives to encourage students to graduate on time by taking more semester credit hours per semester. These incentives include:

• Tuition discounts for summer school (U.T. Austin).
• Flat rate tuition plans, through which a student can increase the course load without paying more (U.T. Austin).
• A cap on tuition and fees at a certain credit hour load (U.T. Pan American).
• A freeze on future fees (U.T. Austin, U.T. Dallas, U.T. San Antonio and U.T. Tyler).
• Earned tuition credits in the senior year for students who have progressed through their degree plans on time (U.T. Permian Basin and U.T. Tyler).

Increasing the graduation rate and shortening the time that students take to earn a degree will serve several purposes. It will allow institutions to admit more new students with current facilities and resources because older students will be leaving on time. It will also save students and their parents significant amounts of money by cutting the total living expenses during one's time in school and speeding up the entry of graduates into the professional labor market.

Other incentives in the tuition plans will help institutions make better use of their facilities. One of those incentives offers tuition discounts at off-peak hours (U.T. Tyler).

In addition, U.T. Arlington and U.T. Austin will institute different tuition rates for different colleges or academic majors, a move that will help focus more resources on high-cost programs.

U.T. San Antonio will offer no-interest loans for education majors and loan forgiveness for graduates who teach in elementary and secondary schools for a certain number of years. UTSA also will provide tuition rebates to former students who return to finish their degrees and graduate.

Related News Releases:

• Regents emphasize financial aid in approving tuition increases
• Tuition Increases Will Strengthen Academic Programs and Student Services
• Consultation process helped tuition plans gain wide support
• Financial Aid Plans and Incentives Will Help Students Pay

Archived Webcast

The webcast includes presentations from

• Chancellor Mark G. Yudof
• Executive Vice Chancellor Teresa Sullivan (ACA)
• Executive Vice Chancellor James Guckian (HEA)
• Campus Presidents
• Campus Student Body Presidents
• Senator Shapleigh

Background Information:

Motion from the Board approving tuition increases

PowerPoint Presentation

U.T. System Tuition Website

>Details of campus tuition proposals
>Report from the U.T. System Commission on Tuition

Media Background Information