University of Alaska tuition for career and technical courses may be cut

University of Alaska tuition for career and technical courses may be cut, university officials say.

Tuition at the state university system for four-year degree programs are still competitive with Lower 48 universities but rates for career and technical courses typically in two-year Associate Degree programs are higher on average than out-of-state institutions, UA president Jim Johnsen told members of the Anchorage Chamber of Commerce in a recent briefing.

The university now performs 90 percent of the career and technical education in the state, university officials have said.

UA’s Board of Regents will vote upon on a general 5 percent tuition increase in January and will later consider other changes to the tuition structure. The 5 percent tuition increase for the next academic year will generate $5-$7 million in revenues, according to estimates by the university.

Even though UA has increased its tuition in recent years it still remains below the average tuition among the Western Interstate Commission for Higher Education university average for four-year institutions, said Paul Layer, UA’s Vice President for Academics, Students and Research.

But when comparing UA’s associate degree costs with community colleges elsewhere which grant similar degrees, Alaska’s tuition is above the average, Layer said in an e-mail.

“The Board of Regents has instructed the university to assess the same rate of tuition at all campuses. Whether a student is at one of our community campuses or at our four-year institutions, the undergraduate tuition rate is (now) the same,” he said.

“Each of UA’s three universities are preparing a tuition proposal that will be presented to the Board of Regents and President Johnsen this spring. The proposals will include the possibility of tuition differentiation within and across the universities. Also included would be a study of tuition at our community campuses,”Layer said.

UA’s tuition for a first-year undergraduate is $223 per credit hour. The average among UAA’s peer institutions in the Lower 48 states is $290 per credit hour for a first-year undergraduate. However, because UAA charges a the same rate for two-year associate degrees, the $223 per credit hour compares unfavorably against the average of $137 per hour among the peer institution comparisons.

UA already taken some steps to reduce to differential between Lower 48 and Alaska tuition for career and technical courses, Layer said. In fall, 2018 the university reduced tuition rates by 25 percent in selected career and technical education programs taught at community campuses. The reduced tuition, decided on a course-by-course basis, applies to 50 programs and more than 300 courses at UAA, UAF and UAS.

An example of this is that if the 2019-2020 lower division course tuition is $223 per credit the tuition reduction would be $56 per credit. The cost per credit after the discount is $167, the university said. There is no reduction to assessed fees, non-resident surcharge, or other costs.

Even the $167 per hour rate is above the average among peers of $137 per hour, however.

Declining state investment means UA must look elsewhere to increase revenue while also reducing costs, the university said in a statement, Layer said. Based on a compilation from WICHE, the university’s tuition and fees cover about a third of the cost of the instruction. The western state average is closer to 35 percent, he said.