Penn State again raises tuition, with University Park set to see the biggest hikes

Penn State’s board of trustees v oted Friday to raise tuition on University Park students next year, while in-state undergraduates at commonwealth campuses will see no increase.

University trustees meeting at the Altoona campus approved a 2% increase for in-state undergrads at University Park and 4% for out-of-state students at the flagship campus during the 2025-26 academic year. Last summer, the trustees approved similar increases for the 2023-24 and 2024-25 academic years.

A typical in-state undergrad would see their yearly tuition next year rise $402 to $20,468. Out-of-state students taking classes in Happy Valley would see tuition rise $1,648 to $42,860.

In-state undergrads at commonwealth campuses make up the only cohort that can expect no tuition increase. Other students there would see between a 1% and 2% increase.

Sara Thorndike, Penn State’s senior vice president for finance and business, told trustees the increases would be used to help cover annual salary increases, faculty and staff promotions, new overtime regulations and more.

It is the fifth consecutive year Penn State increased tuition. The 2024-25 tuition rate was approved by the board last year .

Four alumni-elected trustees — Ted Brown, Barry Fenchak, Anthony Lubrano and Matt McGloin — voted against the plan.

“We froze tuition at UP three times before,” Brown said. “I’d like to see us do it a fourth time.”

Added McGloin: “I agree with Ted when he says we must find ways to freeze or hold the line on tuition. We can’t continue to burden our Pennsylvania, homegrown students with another tuition increase.”

In recent years, the university has typically been the most expensive non-private Big Ten school when it comes to annual in-state tuition. Administrators often respond by pointing out the Keystone State annually ranks among the worst states in the country for per-capita support of higher education.

“We know that these decisions have real impacts on the personal finances of our students and their families,” university President Neeli Bendapudi said Thursday in a statement. “That is why we have held tuition flat for 18,000 in-state 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.”

The plan includes a balanced education and general budget of about $9.9 billion. To get there, Penn State has implemented a hiring freeze, offered buyouts and more. A balanced budget was one of, if not the, top charges given to Bendapudi after her arrival in 2022.

Several trustees complimented the university on its budget process during a committee meeting Thursday. Trustees voted to increase financial aid funding by $5 million, which would bring the university’s total investment to more than $455 million.

“Our focus is on preparing Penn State for the future and making a great university even greater,” Bendapudi said Thursday. “A critical part of that is a balanced budget, as it will provide us with the financial strength to evolve as an institution and invest in areas critical to our mission, including our research enterprise and our academic programs, so that we remain at the forefront of innovation.

“Reaching this point has taken hard work from so many dedicated Penn Staters. I know it has not been easy, and there will need to be continued commitment to address these challenges. However, the efforts we have undertaken to strategically reduce expenses, transform how we allocate our resources, improve efficiencies, and grow our revenues — while still delivering a world-class educational experience for our students — have placed us on a sustainable financial path and set us on a course for a bright future.”

Student fees, which are proposed by the student fee boards, are set to increase 8.3% to $315 at University Park.

Under the plan, the standard housing and food rate at University Park will increase 3.21%, or $216 per semester, for the 2025-26 academic year. That is tied for the university’s lowest increase since the coronavirus pandemic.

Penn State’s approved 2024-25 housing and food rates are $13,448. The Big Ten average is $14,993, according to public information provided by the trustees.

Thorndike said the increases are necessary to cover projected rises in food costs and operating expenses. Housing and food revenues must cover all operating expenses, debt, interest and maintenance.

“Penn State is committed to controlling all facets of a student’s cost of attendance, and this includes our housing and food rates, which remain well below the Big Ten average,” Thorndike said in a statement Thursday. “Despite significant inflationary pressures, we have worked hard to minimize cost increases for our students while still providing them with a high-quality living experience in well-maintained facilities. We strive to provide housing and food rates that are competitive in each campus’ local market and that are in line with the resource needs of our students.”

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