24 Chapter 3 Undergraduate Students: Affordability Goals loans, and work study employment. In acknowledgment of The University of Michigan has a longstanding commitment real concern over the nation’s rising student loan debt, the to provide financial aid to undergraduates that meets the full University has worked hard to provide students with more demonstrated need of admitted, in-state students to pay for and larger grants, which do not need to be repaid, and to tuition, room and board, textbooks and incidentals. Starting reduce their reliance on loans. with the Winter 2018 term, the U-M launched the "Go Blue In 2019-20, 71 percent of in-state and 50 percent of out-of- Guarantee," which pledges the University to provide aid that state students received some type of aid. The average student at a minimum covers four years of tuition for any admitted loan debt for in-state students who graduated in 2019-20 was in-state student whose family income is below $65,000 and $22,462. with assets less than $50,000. Overview For More Information The University has worked very hard in recent years to minimize tuition increases. It has been able to reduce the net Office of Financial Aid (finaid.umich.edu/) cost of attendance for undergraduate students with financial Go Blue Guarantee (goblueguarantee.umich.edu/) need (despite dramatic declines in state support) by making sizeable and growing investments in financial aid, funded U-M Affordability Guide for In-State Students through a combination of aggressive cost containment and (admissions.umich.edu/costs-aid/michigan-residents/) generous philanthropic contributions. Furthermore, student Cost Cutting and Budget Update support was the highest priority for the recent, record- (publicaffairs.vpcomm.umich.edu/key-issues/cost-cutting- breaking Victors for Michigan fundraising campaign. budget-update/) The University has seen to it that the central financial aid budget has grown to more than keep pace with tuition increases; the budgeted about for student aid has increased 12 percent per year over the last decade. Aid packages combine need- and merit-based grants and scholarships, Chart updated since the October 2020 edition. Charts in Chapter 3 3.1 Undergraduate Tuition and Required Fees, per Semester, 2020-21. 3.2.1 Total Cost of Attendance Before Financial Aid, In-State Students, U-M and AAU Public Universities, Adjusted for Inflation, FY2010-2020 3.2.2 Total Cost of Attendance Before Financial Aid, Out-of-State Students, U-M and AAU Public and Private Universities, Adjusted for Inflation, FY2010-2020. 3.3.1 Typical Net Cost of Attendance for New U-M First-Years by Family Income Level, FY2011-2021. 3.3.2 Dollar Change in Average Net Cost of Attendance for New First-Years Receiving Aid, at U-M and Peers, FY2016-2018. 3.4 Total U-M Expenditures for Undergraduate Student Grant and Scholarship Aid, by In-State/Out-of-State Status, Adjusted for Inflation, FY2010-2020. 3.5.1 Average Grant and Scholarship Aid by Source, Adjusted for Inflation, for New First-Years at U-M, FY2009 and FY2019. 3.5.2 Average Institutional Grant or Scholarship Compared to the Average State Grant and Scholarship Aid for New First-Years, U-M and AAU Public Universities, FY2019. 3.6.1 Family Income Distribution for New First-Years and All Undergraduates, by In-State and Out-of-State Status, Fall 2009 & Fall 2019. 3.6.2 Pell Grant Recipients as Percent of Undergraduate Student Body, U-M and AAU Institutions, 2018-19. 3.6.3 Number and Percentage of In-State/Out-of-State U-M Undergraduates Receiving Pell Grants, 2010-2020. 3.6.4 Number and Percentage of Undergraduate Students Receiving Aid, by Type, 2019-20. 3.6.5 Total Financial Aid Awarded and Average Total Award per Student Receiving Aid, 2019-20. 3.7 Weekly Hours of Paid Work by U-M Undergraduate Students, 2009-2019. 3.8 Average Student Loan Debt Burden at Graduation for All, In-State and Out-of-State U-M Undergraduate Students, 2019-20. Chapter 3 – Undergraduate Students: Affordability (17th Edition) 25 Tuition and fees for in-state, first-time, first-year undergraduates start at $7,974 per semester in the College of Literature, Science & the Arts, Penny W. Stamps School of Art & Design, Taubman School of Architecture & Urban Planning, and the School of Nursing. In-state first-years entering the College of Engineering pay the highest per-semester rate of $8,525. 3.1 Undergraduate Tuition and Required Fees, per Semester, 2020-21. Per semester School/College Program In-State Out-of-State Taubman College of Architecture Lower Division $7,974 $26,133 & Urban Planning Upper Division $8,974 $27,964 Lower Division $7,974 $26,133 Penny W. Stamps School of Art & Design Upper Division $8,974 $27,964 Lower Division $8,451 $26,573 Stephen M. Ross School of Business Upper Division $10,649 $29,730 Lower Division $8,120 $26,286 School of Dentistry (Dental Hygiene) Upper Division $9,127 $28,123 School of Education Upper Division $8,974 $27,964 Lower Division $8,525 $26,286 College of Engineering Upper Division $10,980 $29,492 School of Information Upper Division $8,974 $27,964 Lower Division $8,408 $27,778 School of Kinesiology Upper Division $9,633 $30,334 Lower Division $7,974 $26,133 College of Literature, Science & the Arts Upper Division $8,974 $27,964 Medical School Upper Division $8,974 $27,397 Lower Division $8,288 $26,480 School of Music, Theatre & Dance Upper Division $9,286 $28,309 Lower Division $7,974 $26,133 School of Nursing Upper Division $8,974 $27,964 College of Pharmacy Upper Division $8,974 $27,964 School of Public Health1 Upper Division $8,974 $27,964 Gerald R. Ford School of Public Policy Upper Division $8,974 $27,964 SOURCE: U-M Student Data Sets Tuition and fees contribute to paying for the cost of Part of this year's increase is due to a new fee of $50 per term instruction, financial aid, academic advising, libraries, for COVID-19 expenses. computing centers, and other student support services. Tuition rates vary by school and college in part because the Students who have completed fewer than 55 credits toward program completion pay the Lower Division tuition rates. delivery costs for programs vary or because the demand for Those who have completed 55 credits or more pay Upper certain programs is greater than for others. Division rates. Tuition and required fees increased by 2.5 percent compared to 2019-20 for In-State undergraduate students. Out-of-State undergraduates saw increases of 2.1 percent over last year. 1 The School of Public Health first offered undergraduate programs in September 2018. Chapter 3 – Undergraduate Students: Affordability (17th Edition) 26 Over the last decade, the “sticker price” for in-state U-M students has grown more slowly than the comparable average for in-state students at AAU public universities. 3.2.1 Total Cost of Attendance Before Financial Aid, In-State Students, U-M and AAU Public Universities, Adjusted for Inflation2, FY2010-2020. +0.98% +1.16% 3.2.2 Total Cost of Attendance Before Financial Aid, Out-of-State Students, U-M and AAU Public and Private Universities, Adjusted for Inflation2, FY2010-2020. +1.68% +1.80% +1.32% SOURCE (both charts): Integrated Postsecondary Education Data System (IPEDS) The total cost of attendance (excluding financial aid expenses. The net cost of attendance will vary depending on contributions) for incoming first-years is a benchmark figure financial aid provided, as well as the differences in that includes Regentally-approved tuition and required fees transportation requirements and housing choices. and room and board, plus reasonable estimates for the costs The percentage above each double-headed arrow is the of books and supplies, transportation, and miscellaneous compound annual growth rate. 2 Based on 2020 U.S. Consumer Price Index. Chapter 3 – Undergraduate Students: Affordability (17th Edition) 27 Today's typical in-state students with family incomes up to $100,000 pay less to attend U-M than than their counterparts did in 2010-11. 3.3.1 Typical Net Cost of Attendance3 for In-State First-Years by Family Income Level, Before Merit Aid, Adjusted for Inflation4, Academic Year 2011-2021. SOURCE: U-M Sample Financial Aid Packages, Office of Financial Aid Students from in-state families in the lowest income brackets The dotted line labeled “Sticker Price” is the cost of are not required to pay anything out-of-pocket to attend the attendance before taking into account any grants, loans or University of Michigan. The $2,500 net cost for the under scholarships that may be available to reduce the out-of- $40,000 group represents the amount of Work Study pocket costs. earnings made available to these students, meaning a student who accepts a Work Study job can see a net cost of zero. In Merit-based scholarship aid is not reflected in the cost of attendance data presented here. Merit grants reduce the need addition, Work Study opportunities are offered now to all to take loans or to participate in Work Study as part of a students whose family income is $120,000 or less. student’s Expected Family Contribution. 3 The projected cost of attendance calculation considers Work Study to be a cost to the student, although it can be covered through a Work Study job. The net cost of attendance also accounts for the tax credits typically available to families with annual incomes in the $20,000 to $100,000 range. The net cost does not consider any reduction in loan amounts that were made possible through the award of merit-based scholarships.