University of Richmond to Raise Total Cost of Attendance for Undergraduates to Help Fund Strategic Initiatives
October 15, 2004
The University of Richmond's board of trustees voted today to set the 2005-06 total cost of attendance for entering first-year and transfer undergraduate students at $40,510, an increase of 26.9 percent from the current academic year, and for returning undergraduate students at $33,510, an increase of 5 percent. Total cost of attendance includes tuition, fees, room and board. Recognizing that currently enrolled students and their families had already budgeted for their college expenses based on the existing tuition rate, the board decided to exempt them from the larger increase.
In a sweeping move to help ensure that a Richmond education remains affordable, the board also voted to significantly expand its financial aid programs for undergraduate students. The university will use a sizeable portion of the increased tuition revenue to continue its policy of meeting 100 percent of a student's demonstrated financial need, which began in 2002. This policy places a $4,000 cap on loan and work-study funding per year with the balance of demonstrated need met with need-based grants that do not have to be repaid.
Richmond is the only university in the Commonwealth of Virginia, and one of fewer than 40 universities in the country, to meet 100 percent of undergraduate students' demonstrated need and offer a "need-blind" admission policy. Applying or qualifying for need-based aid is not a factor in Richmond's admission decisions.
A significant portion of the revenue from the increased tuition will be dedicated to expanding need- and merit-based scholarships for undergraduates. Approximately 65 percent of Richmond undergraduate students currently receive some form of financial aid.
Tuition at Richmond is the primary revenue source for annual operations, as is the case with most private universities. Although the university's endowment is sizeable, it accounts for only 27 percent of the institution's total operating budget.
The additional tuition revenue will allow the university to accelerate the process for implementing many of its strategic initiatives that will greatly enhance the undergraduate experience and directly benefit students. These initiatives include increasing the amount of need- and merit-based scholarships, hiring additional faculty in a variety of disciplines, updating technology resources throughout the campus and re-engineering classroom spaces to better facilitate discussion-based learning. Other initiatives include renovating or expanding existing buildings such as the science center, library, business school and dining hall, as well as constructing new facilities on campus.
When the tuition increase is implemented, the total cost of attending Richmond will be comparable to those of other selective private universities in the nation with which Richmond competes for top students, including Duke, Vanderbilt, Georgetown and Colgate.
"For the past several decades, the University of Richmond's tuition rate has been comparatively low and does not accurately reflect the high quality of our faculty, academic programs and campus resources," said Otis D. Coston Jr., rector of the board of trustees. "We are in the process of building one of the nation's great universities, and increasing tuition revenue will provide the resources needed to propel Richmond to the top echelon of academic excellence. We have a responsibility to our students and the nation to provide the highest quality educational experience within our reach."
The vast majority of Richmond alumni support this position. In a 2003 alumni survey, 95 percent of the respondents said that it was important for the university to pursue its vision to "become one of the finest small private universities in the nation."
"The university's generous financial aid program coupled with the increased academic quality resulting from the additional tuition revenue will enhance our ability to attract the best and brightest students from Virginia and beyond to our campus," said Pam Spence, dean of admission.