In a time of uncertainty, the University of Oregon implemented a tuition freeze program that automatically applies to first-year students. The Oregon Guarantee program commits a “locked” cost in tuition for up to five years and offers a sense of financial predictability, Roger Thompson, the vice president for student services and enrollment management, said.
The university created this program to eliminate “surprise” tuition increases for up to five years, according to the Oregon Guarantee website.
The Oregon Guarantee allows first-year students to organize and budget their finances ahead of time by telling students exactly how much they will have to pay before they decide to enroll. Scholarships and financial aid are included. For example, if a student’s tuition is $12,000 upon arrival and their annual scholarship is $4,000, then that student will be paying $8,000 for up to five years.
Oregon Guarantee is mainly targeted to first-year students because they will no longer have an annual increase. This is why first-year students’ tuition rates increased by 9.75% for in-state students and 7.5% for out-of-state students, according to the 2020 University Senate Report. The high increase replaces an annual increase, which has been applied upon enrollment. The university did this because it guarantees students a fixed tuition cost for up to five years.
Housing and health insurance are not included in the Oregon Guarantee.
On the other hand, for non-first-year students, “there is a different type of guarantee,” Thompson said. The board of trustees decided on a maximum 3% increase for continuing students each year, according to the 2020 University Senate Report. This means tuition is bound to increase, but not more than 3%.
In previous years, the UO increased annual tuition rates by about 5%, therefore a 3% annual increase for continuing students is lower than the average rate, Thompson said.
“As of right now, students that would be sophomores through seniors would be paying less than the freshman,” Thompson said. “The freshmen over the next five years are not going to be paying anything more.”
The incoming Fall 2021 class will pay a different cost than this year’s first-year students and continuing students. Each cohort will pay different prices, but at a flat rate.
A cohort is a group of students who enroll in the same academic year, according to the UO Oregon Guarantee website.
Students who transferred this year pay the same cost in tuition as first-year students and are guaranteed a “locked” tuition. This is because first-year students and transfer students enroll in the same cohort. Continuing transfer students fall under the 3% maximum tuition increase guarantee.
Thompson believes this gives UO a competitive advantage and a feeling of financial comfort for students.
Thompson said he and a group of people studied and researched the concept behind the Oregon Guarantee about five years ago, but there was no proposal made. It wasn’t until this year when the Tuition and Fee Advisory Board unanimously agreed to it.
First-year student Jeremy Mecalis said he was torn between Arizona State University and UO before committing. When he learned about the Oregon Guarantee, he said it was a game-changer for him.
“It feels safe. The financial aspect of it is like, ‘you’re set.’ Whether it goes up or down, you know what the price will be,” he said. “In a way, It’s reassuring.”
Mecalis said once classes begin in person, he’ll be happy that the price in tuition will remain the same as remote learning.
Conrad Sproul, the ASUO executive finance director and a senior at UO, believes this guaranteed tuition model is a good decision because it allows students to financially plan ahead.
“When you agree to pay for something like college that’s that expensive, it’s good to know exactly how much you’re going to pay before you make that decision,” he said.
Based on Sproul’s experience, there was no way to know how much he would pay by the time he graduated.
“Without guaranteed tuition, you could be in your fourth or third year, and they could raise tuition by 5 to 8%, and then you wouldn’t have a choice because at that point you’re pretty committed to the school,” Sproul said.
As of now, Thompson said the impacts of the Oregon Guarantee are difficult to identify because it’s early into the school year, amidst effects from the COVID-19 pandemic.
By launching the Oregon Guarantee, the university is taking on a risk in case a financial crisis were to occur, Thompson said. Over the last 25 years, the state’s funding for UO has decreased. Therefore, some funding is provided by supporters and donors of the university, Thompson said. Right now, the university has some “money on the side,” in case the university is put in a difficult financial situation.
Thompson said he believed the Oregon Guarantee is one of the best things he’s done in his 11 years at UO. “It’s just so beneficial to our students and their families,” he said.
