Keeping up with trends of recent years, the price tag of a Penn education -- tuition, fees, room and board -- will see a total hike of 4.8 percent next year.
The increase, approved at yesterday's University Board of Trustees meeting, will bring the total charges to $37,960. Tuition will also rise 4.8 percent to $26,282, while fees will increase by 4.3 percent, bringing the total to $3,036. Room and board costs will also see an increase of 5.1 percent to $8,642.
University officials point out that although the increases are significant, they are in line with similar hikes at Penn's peer institutions.
"Despite the challenges we are facing in these uncertain economic times, we have remained committed to keeping tuition increases as low as possible," University President Judith Rodin said in a statement.
Across the country, the average cost of tuition, room and board at four-year private colleges rose 5.3 percent last year, and at public universities, it rose 7 percent according to U.S. News and World Report.
Although the 4.8 percent in total charges at Penn may be rising at roughly the same rate as similar universities, it is rapidly outpacing the rate of inflation -- which rose 1.5 percent last year.
But according to administrators, the two figures are based on different costs.
"The factors that go into the cost of living index are not the same factors that we have to pay as a University," Provost Robert Barchi said. "It's a reflection of the kinds of things that make up your shopping basket.... If you have to run a big university... you're buying in a different market basket, and that market basket has a different inflation index."
With the increased prices will come increased aid, according to administrators.
Because Penn's admissions policy is need-blind, "when we raise prices, what we're also doing by definition is raising financial aid," according to Barchi.
University officials project that an additional 7.5 percent in grants and scholarships will be given next year.
With last year's $59.3 million financial aid budget to help offset costs for students, administrators say Penn has the second-largest financial aid budget in its peer group behind Harvard University.
Currently, approximately 60 percent of undergraduates receive some kind of tuition break in the form of loans or grants.
Barchi also said that because of a new approach to reporting room and board costs, the reported $418 increase actually represents an increase of 1.8 percent from last year's reported $8,492.
The difference lies in the figures factored into the cost -- while in previous years, room and board charges were reported based on averaging the costs of all room types and meal plans available, next year's figure is instead based on the cost of an average freshman room and the price of the meal plan required for all freshmen.
This change in reporting, University officials say, will offer a more accurate reflection of what the price of a Penn education will cost for prospective students.
"Now, when a freshman is told... 'This is what it's going to cost you to come to Penn,' the chances are very, very high that that's exactly what it's going to cost when they come to Penn," said Bonnie Gibson, acting executive director of budget and management.
Staff reporter Margherita Ghiselli contributed to this report.
