Feb. 18, 2004

Board Approves Fixed Tuition Plan

New Fixed-Rate Tuition Plan for Incoming Freshmen Eliminates Uncertainty Over Future Costs

By Bob Ludwig

The George Washington University Board of Trustees approved a new fixed-rate tuition plan for incoming freshmen that will provide cost certainty for families and also will guarantee a minimum level of financial assistance for students awarded merit and need-based institutional aid at the time of enrollment.

“These are challenging times for institutions of higher education, both public and private,” said President Stephen Joel Trachtenberg. “Our mission is to provide a first-rate education to our students and that means first-rate faculty, state-of-the-art classrooms, and a living and learning environment that supports a healthy overall experience.

“At the same time, we are compelled to hold down costs, pay our bills and plan for the future,” Trachtenberg emphasized. “So, we need to be more imaginative in determining how best to meet our needs and serve our constituencies. This family-friendly initiative takes the mystery out of tuition prices, guarantees institutional aid and helps both GW and our families plan for today and tomorrow.”

Tuition increases at private universities last year averaged 6.3 percent and the volatile economy continues to make pricing unpredictable. This innovative plan keeps tuition costs consistent for four years (plus a possible fifth year for those students who need it) and guarantees a minimum level of institutional financial aid during a student’s undergraduate enrollment.

Parent/Student Response
“As a parent of a 2003 GW graduate and, who also currently has a second-year student attending the University, this giant step by the administration in removing the economic stress associated with these normally fluctuating monetary issues is not only comforting, but clearly proves that the GW ‘family’ concept is something the University takes very seriously,” said Fred G. Daniels of Merrick, NY.

GW already has a fixed-rate tuition plan in place for students enrolled in the seven-year BA/MD program. “As a student who has benefited from a predictable tuition rate, I am confident that this will prove to be an effective strategy in helping other families plan the cost of a college education today,” said Vik Bakhru, who will complete his BA/MD degree next year and locked in his tuition rate in 1998.

Pricing for New Students
Tuition for most incoming freshmen at GW (which will be frozen for their entire undergraduate experience, up to a total of five years) in the 2004–05 academic year will be $34,000. Under the innovative fixed-rate pricing plan there will be no further increase in tuition for those freshmen during their sophomore, junior and senior years. The percentage increase equates over four years (and a fifth year, if necessary) to less than 4 percent a year. Room and food prices will continue to be subject to normal inflationary pressures.

Financial Aid to Increase by $14 Million
Funding for undergraduate and graduate student financial assistance will increase by about $14 million in the next academic year, bringing the University’s total commitment for student aid to more than $123 million. Further, under the fixed-price plan, freshmen who receive institutional financial aid would know they can rely on a defined minimum amount of aid throughout their four-year (or five-year) enrollment (as long as they continue to make satisfactory academic progress). This guaranteed minimum amount of aid, however, can be increased (but never decreased) during their enrollment.

Increased Investment in Strategic Plan for Academic Excellence
Under the plan, increased funds will be dedicated to initiatives related to GW’s Strategic Plan to bolster academic excellence, including the new Writing Program, investments in facilities, graduate aid and support for Gelman Library and the GW Law School. Increased allocations also will be made to enhance University services in areas such as campus safety and security, student life, administrative support for research and customer service initiatives.

“We continue to advance support for the initiatives of our Strategic Plan and have begun to see them bear fruit in a more vibrant and stimulating learning environment for our students,” said the Honorable Charles T. Manatt, chair, GW Board of Trustees. “While these programs and their positive results are increasing the University’s academic vitality, we also acknowledge the economic strain that is faced by many GW families and have included a $14 million increase in financial aid.”

2004–05 Pricing for Returning Students
The fixed-rate tuition plan begins with new, full-time students entering in Fall 2004. For returning students, the Board of Trustees approved a 5 percent increase in tuition and fees.

The total dollar amount for tuition and fees for students who entered in Fall 2003 or Spring 2004 will be $30,820. Students who entered the University before Fall 2003 but after Spring 2001 will pay $30,530, while students who entered the University before Fall 2001 will pay $30,130.

The Board of Trustees also approved a 5 percent tuition increase at the graduate level, while Law School tuition will rise by 5.25 percent. For the School of Medicine and Health Sciences, tuition and fees will increase 2.5 percent for first-year students and 2.1 percent for second-, third- and fourth-year students. The blended rate for all tuition increases is 4.7 percent.

Send feedback to: bygeorge@gwu.edu