Michigan study notes financial aid offsets tuition

By Tim Martin Associated Press LANSING (AP) -- An organization representing the presidents of public universities in Michigan recently released a study showing that increased financial aid means many students aren't paying the full listed price of tuition. Increased financial aid offered by the universities themselves and federal Pell Grant money are major factors helping students avoid paying the "sticker price" of a college education, according to the study from the Presidents Council State Universities of Michigan. The average annual listed tuition price at Michigan's 15 public universities for an in-state, full-time undergraduate was $9,661 in the 2010 fiscal year. The study said financial scholarship aid, federal tax credits and deductions reduced the average cost to $4,787 -- or 49.5 percent of the sticker price. Students on average paid 56.1 percent of the listed price in 2009 and 52.1 percent in 2008. The average cost varies widely by university. The study didn't include the cost of room, board or books. Some students don't get any financial aid. Others can offset their full tuition bills with the help. But most students are somewhere between those two extremes. "The bottom line is aid is available if you have need," said Michael Boulus, the Presidents Council's executive director. "College is still affordable." With the goal of keeping college affordable for needier students, Michigan universities have increased their own offerings of financial aid to students in recent years. At the same time, they've raised their tuition rates in large part because of declining state support. Only Rhode Island and New Mexico had larger declines in state support per student than Michigan from 2005 through 2010, according to the report. State aid for Michigan university operations will decline 15 percent in the budget year starting Oct. 1. Tuition will increase by up to 7 percent for instate students at some Michigan public universities this fall. The listed price for tuition has more than doubled in the past decade at some of Michigan's universities. Despite the higher tuition rates, overall enrollment at the state's public universities continues to generally increase. ---------------- Online: Presidents Council: http://www.pcsum.org. Published: Mon, Sep 5, 2011