Texas has experienced an 86% increase in tuition rates since 2003. A closer inspection on tuition set aside practices reveals that these tuition set asides may represent a significant catalyst for these drastic cost increases. To illustrate this theory, consider an undergraduate student at Texas A&M University:
- The student will pay $2,5681 in tuition per semester (15 hour semester)
- Over four years, the student will pay $20,545 in tuition of which $2,718 will have been set aside for needy students.
- Having borrowed $20,545 for tuition, the student will make $28,3722 in cumulative payments ($540 in interest on the loan principle that was set aside for other’s).