VIII-2.01 – POLICY ON TUITION

Approved  by  the Board of Regents June 11, 1993; Amended on  December
19, 2003; June 23, 2004; June 22, 2005)

PREAMBLE

The University System of Maryland is responsible for and committed to
ensuring that qualified Maryland residents have access to System
institutions and quality education at affordable costs.  Since the
students benefit from the education they receive, they have a
responsibility to pay a reasonable share of the costs through tuition.
Since Maryland benefits from having an educated citizenry, the state
also has a responsibility to bear a substantial portion of the costs
through taxpayer support.  The University System of Maryland also has
a responsibility to Maximize the efficiency of its operation so as 
to minimize the cost to taxpayers and students.

Among the principles set forth in the System's founding legislation
are the following:

  .  The people of Maryland deserve high quality in all
     aspects of public higher education.

  .  Public higher education should be accessible to all
     those who seek and qualify for admission.

  .  Adequate funding by the State is critical to ensure
     access to high quality public higher education.

To help identify the responsibilities of students and the state in
funding public higher education AND to ensure that the University
System of Maryland is able to fulfill its legislative mandates, the
System leadership recognizes the need for a tuition policy.  The
policy is designated to:

  .  provide students with a quality education and enable
     the System to move toward its legislatively-mandated goal of
     achieving and sustaining national eminence;

  .  further the state's understanding and appreciation of
     the significant role state revenues are expected to play in
     supporting the goals of the System;

  .  allow the System and its institutions to plan, budget,
     and allocate resources over the long term;

  .  keep tuition increases predictable, enabling students
     to plan for their educational expenses;

  .  provide access to System institutions for the range of
     qualified students; and

  .  recognize and support the individual institutional missions.

 
Students from other states and countries who enroll at USM
institutions add a richness of experience and diversity that benefits
all institutions and their students.  However, those students should
pay an additional amount of tuition, which, at minimum, offsets the
State's contribution intended to subsidize the education of its
residents.

I.   DEFINITIONS

     . Tuition:  The rate paid by students to enroll in a USM
       institution and the fees all students must pay that are part
       of the state supported budget.  Fees to support auxiliary
       enterprises, self-funded operations and fees that are not
       collected from all students (e.g., lab fees, application
       fees, etc.) are not covered by this policy.

     . Funding Guideline: The funding guideline is a
       calculation that provides an institutional benchmark to
       assess the adequacy of funding for an institution against an
       external peer-related comparison.

     . Full-Time Equivalent Student (FTES): Number of full-
       time students plus one-third the number of part-time
       students.  This formula is consistent with that used for the
       funding guidelines and national standard practice.

     . State Appropriations: General funds (state tax dollars)
       provided annually to an institution.

     . Self-funded Operations and Auxiliary Enterprises:
       Operations supported by fees and charges that are determined
       by the amount of revenue required for the individual
       activity to operate on a sound fiscal basis, without
       accumulating a deficit or postponing required expenditures
       to a future year.


II.  Tuition Plan and Level

      Tuition at an institution, when combined with state
appropriations for that institution, is expected to
provide sufficient revenue to support the goals of quality and of
achieving and sustaining national eminence.

     A.   Institutional Tuition Plans

          1.   Each institution will update annually a four-year
            tuition plan based on assumptions that on a format
            provided by the Chancellor, related to projected state
            appropriation, funding guidelines target and planned 
            enrollment levels. Changes proposed in the annual update 
            should address changes in assumptions that caused the 
            recommended revision to tuition rates.

          2.   Funding guidelines targets will NOT be adjusted to
            compensate for enrollment growth that has not been
            approved by the Board of Regents.

          3.   This plan will also include targets for increased
            efficiencies in institutional operations, including cost
            containment initiatives reported to the State.

          4.   Revenues from tuition or special programs that are part
            of the state-supported budget should be included in the
            tuition plans.  The plans should also include revenues
            from all fees that are not related to auxiliary operations or
            other self-funded activities.

          5.   Tuition is expected to vary by institution based on
            mission, program offerings, general funds per full-time
            equivalent student, facilities, and other factors.


     B.   Tuition Level

      Tuition for each category of student at an institution will be
established either as an annual cost or specified as a cost per
credit hour. The tuition levels should be established in accordance
with the following principles:

          1.   Generally, undergraduate tuition within an institution
            should not vary by discipline or cohort, except for the
            professional schools at the University of Maryland,
            Baltimore.  However, institutions may seek an exception to
            this policy.

          2.   Non-resident undergraduate students should pay an
            additional amount of tuition which at a minimum offsets
            the State's contribution intended to subsidize the education
            of its residents and institutions are encouraged to set
            tuition for non-resident undergraduate students at market level.
            Based on compelling reasons, institutions may seek an
            exception to this policy.  For each institution, the
            calculation of the State contribution shall include the
            general funds appropriations per resident FTES (as defined
            in the USM Funding Guidelines) plus the System average
            cost of GO and PAYGO debt amortization (cost of facilities not
            reflected in the institutions' budgets) per resident FTES.
            The calculation of state subsidy should be adjusted for
            state financial aid and research/public service support.

          3.   Part-time undergraduate students are to pay a per-
            credit hour charge based on a normal semester load for a
            full-time undergraduate student of at least 12 credits per
            semester.

          4.   Tuition for graduate and professional students may be
            set on a program differential basis.

          5.   Non-resident graduate and professional students are to
            pay a higher amount than in-state graduate and
            professional students; their tuition should reflect 
            market levels unless there is a compelling reason to 
            the contrary.

          6.   Tuition for special programs at the graduate level may
            be set at a flat rate that may include fees and may vary
            from the guidelines stated above.


     C.   Implementation

     Before implementation, the Board of Regents shall approve
     institutions' tuition rates.  Generally, Board approval of
     tuition rates for a given academic year will occur near the start of
     the preceding academic year. The University System of Maryland
     reserves the right to make changes in tuition, fees, and other
     charges at any time, upon a finding by the Board of Regents,
     or a System institution authorized to act without Board of
     Regents approval, that any such change is necessary.

     University of Maryland University College may set tuition rates 
     and fees without prior Board of Regents' approval for groups of 
     students covered by arrangements between UMUC and public and 
     private entities.  Any tuition rate or fee offered by UMUC as 
     part of such arrangements shall never be lower than the 
     corresponding resident tuition rate except for arrangements 
     with the United States government, when those arrangements 
     are significant to implementing UMUC's mission or business plan. 
     UMUC shall report to the Chancellor on corporate tuition rates.


III. FINANCIAL AID

      Institutions should address need-based institutional financial
aid opportunities in their tuition plans with the goal of maximizing
access for all qualified students under the proposed tuition rates.


IV.  REQUIRED REPORTS

      This policy provides for undergraduate tuition to be established
independent of tuition at comparable institutions.  However,
tuition information for  comparable institutions within the region and
nationally is to be made available to the Board of Regents
Committee on Finance at the time it considers the operating budget
request and the related tuition adjustments.

      Each USM institution will provide to the public easily
accessible information reflecting a four year projection of costs to
attend the institution. The projection will include an explanation
of the assumptions serving as the basis of the projects.  The
information should include examples of the total costs for typical
students, including tuition, mandatory fees, course fees, and room
and board.