Published: September 01, 2009 09:35 pm      

IU offering tuition grants to in-state students

BLOOMINGTON — Indiana University is trying a new incentive officials hope will boost student performance while appeasing lawmakers and others who complained about recent tuition increases: cash credits for good grades.

The university is offering in-state undergraduate students at its main Bloomington campus a chance to earn $300 off next year’s tuition bills if they are enrolled full-time and earn at least a B average both semesters this year. Students at Indiana University-Purdue University Indianapolis also may earn $300 “incentive grants,” while students on other campuses may receive $200 for getting good GPAs while taking at least 12 credit hours of classes.

IU President Michael McRobbie said the plan addresses concerns about the school’s decision to raise tuition 4.6 percent this year and 4.8 percent next year at Bloomington. But he said he also wants the program to serve another purpose: helping students academically and giving them a feeling that they can do something to control costs.

“It’s important for students to have some skin in the game,” McRobbie told reporters at a news conference Tuesday at IU’s student union.

More than half of the in-state students at IU Bloomington would have earned the grant last year had the program existed then, McRobbie said. Rates at other campuses were unclear. Officials estimate the program, which is an expansion of the school’s Degrees of Excellence initiative, could cost up to $3 million — money that will come from savings elsewhere and other sources.

IU Southeast Chancellor Sandra Patterson-Randles also expressed support for the plan Tuesday.

“A well-considered program, which encourages staying in school, is especially welcomed,” Patterson-Randles said in a press release Tuesday. “Particularly when it makes education more affordable.”

McRobbie said the plan appeared to be unique among universities and could be continued in future years if it measurably increases student performance or retention.

“It’s going to be an interesting experiment,” he said.

Tuition at the school’s Bloomington campus is $8,613 this year and is slated to rise by 4.8 percent, or $414, to $9,027 next year. A $300 grant would cut that increase to $114 next year, or a 1.3 percent increase over this year’s rate.

Seniors set to graduate in June would have to earn a B average this semester and have the credit applied in the spring. Other details of the program are still being determined.

The $300 grants may not mean much when overall college expenses exceed $10,000 a year and many students spend more than $300 on books alone. But every little bit helps, said Ashley Gibson, a sophomore from West Lafayette.

“It’s kind of a small percentage, but 300 bucks is 300 bucks,” she said.

Terran Broyles, a freshman from McCordsville who helps her parents pay for her education, hopes the grant next year could count against money she pitches in.

“Everything helps,” she said. “It’s pretty fair.”

One of IU’s toughest critics of late also was pleased with the plan.

Sen. Luke Kenley, R-Noblesville, chairman of the State Budget Committee, previously threatened to delay construction projects if IU didn’t do something about tuition. Kenley later allowed two time-sensitive projects to move forward after talking with school officials about their plans.

“IU should be given high marks for turning this crisis into an opportunity to incentivize academic achievement and degree completion,” Kenley said Tuesday.

Meanwhile, Kenley continues to pressure Purdue University to take similar steps to reduce tuition.

Purdue approved a 5 percent tuition increase for this school year and next and approved a phased-in $500 new student fee. Its projects were not considered at the most recent Budget Committee meeting, and Kenley said he continued private talks with Purdue representatives at the Statehouse on Tuesday.

Kenley would not disclose details of the discussions but said they were productive and would continue.

“Some stakeholders seem to have forgotten that at one point in state budget negotiations (earlier this year), colleges and universities actually faced a possible 4 percent funding cut due to dwindling state revenues,” Kenley said. “Our tuition talks have served as reminders of these economic times and realities.”

Staff writer Tara Hettinger also contributed to this story.