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The Daily Wildcat

The Daily Wildcat

 

    ASU to test flat rate tuition plan

    PHOENIX – A house committee approved Monday a pilot program at Arizona State University that would allow students to pay a fixed, flat rate for tuition, while UA officials said they want to study the results of the program before considering implementing a tuition payment plan like it on campus.

    According to ASU spokesman Scott Smith, ASU is considering implementing two tuition payment plans: a single, up-front payment and a guaranteed annual payment for four years.

    Smith said ASU’s administration recently made a policy statement supporting 8.5 percent yearly increases in tuition, and used that statement as a basis to calculate the amount for the flat-rate tuition payment plan.

    One-Time payment vs. expected increases
    Total tuition paid
    Annual increase(assumed) 8.5% 7.5% 7%
    Pay as you go (current model) $21,702 $21,183 $20,990
    Flat payment $19,810 $19,349 $19,125
    Four equal installments $21,574 $21,072 $20,827

    For example, Smith said a student who enters ASU in the fall of 2006 without the tuition guarantee would pay $4,781 in tuition in the first year. Total tuition (with similar annual increases) over a four-year period would total $21,700.

    If the same student chose to make a single, upfront payment, he or she would pay $19,810 for four years of classes at ASU. If the student paid the tuition in four equal installments, he or she would pay $21,574 for their tuition.

    Greg Fahey, UA vice president for government relations, said the UA is neutral on the bill, saying the UA would study the result of the pilot program before offering a similar program.

    He said ASU volunteered to implement the flat-rate tuition program.

    The bill is scheduled to be heard next by the House Rules Committee.

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