M E M O R A N D U M
To:Scott L. Pratt, Dean of the Graduate School
From:James R. Terborg, Interim Dean, Lundquist College of Business
Date:November 30, 2015
Subject: Tuition Increase for Business Graduate Programs
Proposal
Current tuition (AY 2015-16) / AY 2016-17 Proposed tuitionMBA / Resident: $26,490
Non-resident: $36,660
resident and
non-resident fees $1,784 / Increase both resident and non-resident tuition 3.5%
Resident: $27,417
Non-resident: $37,944
MAcc / Resident: $18,315
Non-resident: $25,917
resident and
non-resident fees $1,784 / Increase both resident and on-resident tuition 3.5%
Resident: $18,957
Non-resident: $26,823
PhD / Resident: $13,824
Non-resident: $23,031
Resident and non-resident fees: $1,784 / Increase: 0%
Discussion
MBA
Last year the LCB increased tuition by 5% for both resident and non-resident graduate students in the MBA program. This reversed the aggressive tuition increases from previous years which were done when we were drastically underpriced compared to comparators. The increases have been cushioned by increases in scholarships.
The proposed increase of 3.5% will not alter the competitive position (see Appendix) and will enhance the funds we dedicate to scholarships for our MBA students.
Student Consultation
Program Assistant Dean Monica Bray and InterimDirector of Graduate Affairs and Student Services Margaret Pindermet with students on November 24, 2015 to discuss the MBA tuition increase for 2016-17. The increase would apply to all students in the MBA Program (new and returning). Student comments and questions ranged from asking about a tuition lock for two-years; implications for students with scholarship/fellowships and/or students who are GTFs; and why second year students could not get a “lock-in” of tuition as was afforded to the current second year students in the program. It was explained that the “lock-in”/scholarship was a one-time arrangement made by previous administrators. Several students expressed general approval and support for the 3.5% increase, noting that it was less than expected. Students currently in their first year of the program will be notified of the increase via forums and e-mail and students currently applying to the program will be informed of the proposed increase. Dr. Bray and Dr. Pinder made it clear that they are willing to hold additional meetings with students on topics of concern as the need arises. On the whole, the meeting went well and with the consensus of the group, no further meetings were scheduled at this time.
MAcc
The Master of Accounting Program (MAcc) wishes to tie their increase for 2016-17 to the MBA increase of 3.5% for both resident and non-resident.This program is tuition sensitive and increases must not encourage students to declare as post-bacs instead of MAcc students. The 3.5% increase, per the MAcc program director, will not have an adverse impact on the program and is within a normal increase range. The proposed MAcc increase will also be used to continue to subsidize an international experience. This experience was offered for the first time four years ago and was completely funded by the dean. In 2013-14 it was funded 50% by the dean and 50% by the Accounting Department. The trip is a visible and exceptional experience that separates us from our competitors. It is also consistent with the college’s global experiential education focus.
Student Consultation
The MAcc program is a one year graduate program and thus communication of tuition increases will go out to incoming applicants with the 3.5% increase in place. Last year, Program Director Robin Clement met with a group of current students. They thought that the proposed increases (of 4% resident and 3% non-resident) were reasonable especially given that it would help support the trip. Comparator data for MAcc programs in attached.
PhD
Doctoral student tuition should be kept at 0% as the majority of our PhD students hold GTFs. Tuition is therefore assessed at the in-state ratebut covered by the GTF tuition waiver. Since we bear the cost of the waiver, it might be in our interest not to raise tuition at all. If we were to raise it and have to justify the raise, the annual increase in the GTF stipends for PhD students would be ample justification, as it exceeds any tuition increase we might contemplate.
Process
The proposed rates were made in consultation with Interim Dean James Terborg, Interim Associate Dean for Academic Programs Michael Crooke, MAcc Program Director Robin Clement, Assistant Dean – Graduate ProgramsMonica Bray and Dave Guenther, Professor of Accounting.