University contemplating tuition hike and decreasing financial aid portion
The University of California (UC) is facing a potential change in its tuition policy, with the five-year "Tuition Stability Plan" set to expire after fall 2026. UC regents are currently considering a proposal that would raise the tuition cap beyond 2026 and reduce the percentage of new tuition revenue allocated to financial aid.
If the plan is renewed with these changes, average total cost of attendance for California undergraduates could reach approximately $47,400 per year by the end of the decade. This represents a roughly 3.7% increase compared to maintaining flat tuition at 2025-26 levels, which stand near $14,900 for base tuition and a total cost of around $45,700 including fees and living expenses.
The proposed reduction in the proportion of tuition revenue directed toward financial aid may negatively affect the amount of new aid available for low-income students. Although UC officials argue that the current tuition plan has provided nearly $200 million in new, ongoing financial aid funding helping cover increased non-tuition expenses like housing, books, and transportation, a smaller allocation could diminish these benefits in the future, potentially increasing the out-of-pocket burden on students.
Further complicating the financial aid environment, federal changes effective July 2026 will cap Parent PLUS loans at $20,000 per year and $65,000 lifetime per student. This could limit borrowing options for families with significant financial need, particularly impacting low-income and first-generation students who rely on such loans to cover the full cost of attendance.
Student leaders have expressed concerns about the potential renewal of the cohort tuition model, claiming it is an attempt to increase yearly revenue from students' tuition. Andres Martinez-Sabino, a student at UC Santa Cruz, stated that the current model is unfair because students pay different prices for the same classrooms.
In a public discussion taking place on Thursday, UC regents are discussing these changes. However, no decision on these changes will be made this week, and a future vote on the matter is not yet scheduled.
References: [1] "UC Regents Consider Changes to Tuition Policy." University of California Office of the President. 12 September 2022.
- The University of California (UC) is pondering a possible alteration in its current tuition policy, as the five-year "Tuition Stability Plan" is due to expire in fall 2026.
- Under consideration is a proposal to elevate the tuition limit past 2026 and minimize the percentage of fresh tuition money allocated to financial aid.
- Should this plan be renewed with these adjustments, the average total cost of attendance for California undergraduates might surge to about $47,400 per year by the end of the decade.
- In comparison, maintaining flat tuition at 2025-26 levels would be around $14,900 for base tuition and a total cost of around $45,700 including expenses like fees, housing, books, and transportation.
- The proposed reduction in the proportion of tuition revenue assigned for financial aid might lead to less financial aid availability for low-income students.
- In addition to the UC proposal, federal changes effective July 2026 will put a cap on Parent PLUS loans at $20,000 per year and $65,000 lifetime per student, limiting borrowing options for families with substantial financial need, particularly affecting low-income and first-generation students.
