University of California students will be paying higher tuition than current undergraduate and graduate students through the 2027-2028 academic year after the UC Board of Regents Wednesday approved a plan to renew its tuition adjustment plans.
Despite opposition from students and student organizations, the board renewed the Tuition Stability Plan, which was approved in 2021 to allow the school system to increase tuition annually as long as it is within the inflation-based 5% cap.
The continuation of the tuition increase framework, which goes into effect in 2027, will “(play) a critical role in preserving the funds in preserving the funds that support UC’s academic activities and the infrastructure needed to perform them, according the UC Office of the President.
Although some of the unused amount from the tuition revenue will be “banked” or saved and added for a future increase, the UC will reduce the amount of funding set aside for financial aid. Based on the current return-to-aid rate, 45% of every tuition and student service fee increase must go back into financial aid. But in the 2027-2028 academic year, only 40% of every increase will go toward financial aid.
And once the UC’s overall return-to-aid average hits 33%, only 33% of the tuition earnings will be set aside for financial aid.
The new plan will also add an extra 1% increase every year for capital improvements, such as retrofitting facilities and renovating buildings, or whatever each campus may need. The initial proposal was the additional funding to be used for infrastructure upgrades, but the board amended the measure to allow for each UC campus’ discretion.
Under the newly approved plan, the tuition rate will remain flat for enrolled students for up to seven years, instead of the initially proposed six years.
The board meeting was interrupted at one point with protesters after individual students made public comments, expressing their opposition to the plan.
According to the University of California Office of the President, student tuition and fees make up about 40% of its annual revenue of $11.1 billion.
The $11 billion revenue only supports only 20% of the UC system’s yearly budget of $56 billion. UC medical centers are the biggest source of income as it supports 38% of the budget.
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