PSU tuition increases approved; Budget resolves $44.5 million deficit

ALTOONA, Pa. (WTAJ) – Penn State’s budget – increasing tuition 2-4% for University Park students – and resolving the University’s budget deficit was approved, but with dissent from some board members Friday.

Board of Trustee members voted to approve the proposed Education and General budget that resolves the University’s budget deficit by summer 2025.

Four board members voted “No” with some raising concern about the tuition increases for in-state students at the University Park campus, during the Board of Trustees public meeting at Penn State Altoona campus on Friday.

In-state tuition will increase by 2% for the 2025-26 school year for undergraduate students at Penn State’s University Park campus. The 2024-25 tuition rates are $20,066 (estimated, depending on credit hours) per year. The new yearly tuition rate will be $20,468 – an estimated increase of $402.

From the 2023-24 year, tuition will increase a total of $796, which accounts for increases over a 2-year period.

Nonresident tuition for undergraduate students will increase by 1% at the Commonwealth campuses and 4% at the University Park campus.

Board members applauded the continued freeze of in-state tuition for undergraduate students at the Commonwealth campuses. This follows a recent unanimous vote by Pennsylvania State System of Higher Education (PASSHE) to freeze in-state tuition for undergraduate students.

For Penn State University, this only applies to in-state tuition at the commonwealth campuses, which means graduate and out-of-state students will have increased tuition by 1-2%.

The tuition rate increases, and other budget expenditures, resolves most of the $44.5 million budget deficit in the 2023-24 year. The current projected deficit will now be less than $7 million, according to Sara Thorndike, senior vice president for Finance and Business/treasurer, in a statement.

“Our new budget model is allowing us to be more strategic and data-driven with how we allocate our resources, but it is flexible enough that we are still able to invest in the things that make Penn State one of the world’s top public universities,” Thorndike said.

According to a statement, the $38 million deficit improvement is due to “cost savings related to services and natural employee attrition.”

The university announced last month that 383 employees of the Commonwealth campuses accepted a voluntary separation program – a 10% drop in personnel. The program was a way to help reduce the $49 million deficit by incentivizing employees to leave Penn State and pursue other opportunities or retire.

About 52% of staff participating in the program left the University by June 28, with the rest departing later this summer or fall.

Penn State University President Neeli Bendapudi expressed her understanding that tuition increases impact the finances of students and their families.

“That is why we have held tuition flat for 18,000 students at the Commonwealth Campuses for the third year in a row and implemented modest tuition increases for all other students at the remainder of our campuses that are line with the percentage increases seen in recent years,” she said in a statement.

Commonwealth Campuses

• No increase for in-state undergraduates
• 1% for out-of-state undergraduates.
• 1% for in-state graduate students.
• 2% for out-of-state graduate students.

University Park

• 2% for in-state undergraduate and graduate students.
• 4% for out-of-state undergraduate and graduate students.

World Campus

• 1% for all Penn State World Campus students (undergraduate and graduate, regardless of residency).

Law schools

• 5.5% for Penn State Law students.
• 2% for Dickinson Law students.

College of Medicine

• 2% for in-state medical students.
• 4% for out-of-state medical students.

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