Updated 10:22 p.m. Thursday, July 16.
Penn State is poised to raise tuition rates for all students at University Park and some students at Commonwealth Campuses in 2027-28 as part of a proposed $11.1 billion budget.
The Board of Trustees Finance and Investment Committee unanimously recommended approval of the proposal, which also includes increases to room and board rates, at a meeting on Thursday afternoon.
The full board will vote on the plan during its meeting Friday at Penn College in Williamsport. After introducing a two-year budgeting model in 2023, the university’s budget, tuition and room and board rates are set a year in advance.
At University Park, tuition will increase by 2.5% for in-state undergraduates, 2% for in-state graduate students, and 4% out-of-state undergraduate and grad students
For Pennsylvania resident, lower division (first- and second-year) undergraduates, the increase will represent an additional $261 per semester, bringing their tuition for a full academic year to $21,400. For out-of-state, lower division undergraduates, it marks a $891 per-semester increase and brings tuition for the academic year to $46,356.
Pennsylvania resident undergraduate students at Commonwealth Campuses will see no increase for the fifth consecutive year, keeping their tuition between $13,824 and $15,388 per year, depending on the campus.
Out-of-state undergraduates and in-state graduate students at Commonwealth will have a 1% increase, while out-of-state graduate students at the campuses will have a 2% increase.
World Campus, Dickinson School of Law and in-state College of Medicine students will see a 2% increase, and out-of-state medical students will have a 4% increase.
It marks the seventh consecutive year with at least some Penn State students seeing a tuition hike.
The increases for 27-28 will generate about $59 million in new revenue.
Tuition makes up about 81% of the university’s education and general budget, which supports its core educational functions. As university officials have often noted in the past, Senior Vice President for Finance and Business, Sara Thorndike said Penn State ranks near the bottom nationally for state support per in-state student and last in Pennsylvania.
Penn State receives $5,863 in general support per in-state undergraduate, while fellow state-related universities Pitt and Temple receive $3,000 and $5,300 more per student, respectively, while charging roughly the same amount for in-state tuition.
The university’s general support appropriation in Pennsylvania’s 2026-27 budget remained flat at $242.1 million, though it will receive an additional $4 million in new performance-based funding established for the three state-relateds.
Achieving per-student funding parity with the other public universities in Pennsylvania would require a $122.4 million increase in Penn State’s general support appropriation, which, not adjusted for inflation, is lower than what it was in 2010.
“All of this is to share that we’re very tuition dependent,” Thorndike said. “I wish we weren’t, but it is a big part of the equation of balancing our budget. And so that’s why we have to make some of these more difficult recommendations. We’re extremely grateful for what we do receive because if we did not have that state support, the cost of education would be even higher than what it is.”
Additional tuition revenue will help to cover approximately $78 million in new money annually for salary increases and benefits in the $2.9 billion E&G budget, which is balanced for the third consecutive year.
That $49 million in salaries and benefits for a 3% increase for faculty, staff, police and tech service and 4% for graduate assistants; $6 million for faculty promotions; and $23 million increase for higher benefit costs, primarily healthcare.
For fiscal year 2025-26, tuition is under budget by $37 million because of several factors, Thorndike said. The budget was developed before the decision to close seven commonwealth campuses, which prevented admitting new students at those locations.
“We also didn’t know what would be happening in the research space, where research funding has decreased and had some impact on graduate enrollments, or what’s happening internationally and the impact that we’re seeing on our international enrollments,” Thorndike said.
The impact of the tuition loss rolled forward, but was offset through measures other than tuition, including reductions in unit budget allocations for 2027-28, which are set after central student support units are funded and which were shared earlier this year.
“With this budget, Penn State is continuing to invest in excellence — in the people and initiatives that change students’ lives, strengthen communities, and drive Pennsylvania’s future,” President Neeli Bendapudi said in a statement. “At a time of significant change across higher education, particularly for public universities like Penn State that rely heavily on tuition revenue to fulfill their mission, every budget requires thoughtful prioritization. This proposal reflects our commitment to making strategic investments while limiting tuition increases for students and families.”
The full 2027-28 tuition and fees schedules will be online at tuition.psu.edu/tuition-schedules once approved by the board.
ROOM AND BOARD
The 2027-28 budget includes a 2.5% increase — or $194 per semester — for the standard double room and mid-level meal plan at University Park. The increases will bring the average room and board cost to $7,948 per semester, or $15,896 per academic year.
Pending approval, the increases will be the lowest at University Park since 2018-19.
Room and board rates at Commonwealth Campuses vary by campus. At the Abington, Altoona, Beaver, Behrend, Berks, Brandywine and Harrisburg campuses, rates for a double room and mid-level dining plan will rise by 1.5%, or $110 per semester, bringing the total cost to $7,439 per semester or $14,878 per year .
At the Greater Allegheny, Hazleton and Schuylkill campuses, undergraduate housing rates would remain unchanged. The combined cost of a traditional double room and mid-level meal plan would increase only because of a 1.5% dining increase, rising $42 per semester, or 0.68%, for a total of $6,269 per semester and $12,538 per year.
Planned 2027-28 rates for all housing types university-wide are listed here and will be posted at liveon.psu.edu/rates following final approval.
