Congressional legislation could implement penalties for university tuition hikes

Last year's tuition hike brought more money to schools in Arizona, but soon the universities may have to pay for it.

A bill up for consideration in Congress could implement penalties for universities that raise tuition "above a defined threshold," according to the Arizona Board of Regents' November meeting agenda.

The bill would ratify the Higher Education Act, created in 1965 to help the Department of Education with financial aid, strengthening universities and improving education.

"Every six years Congress has to reauthorize it," in order to keep up with changing economic conditions, said Cathy McGonigle, ABOR spokeswoman.

The bill is particularly important for Arizona schools in the wake of a record-setting $1,000 tuition increase, and talk of another increase in the coming year in order to reach the top of the bottom one-third of tuition rates among peer universities in the country.

"The universities would have to evaluate the financial impact," said Stephanie Jacobson, assistant executive director for academic and student affairs for the regents.

At Thursday's regents' meeting, the board will be updated on what issues may be presented or debated among Congress; then the regents will look at how the changes may affect Arizona schools, McGonigle said.

The penalties that may be imposed with the introduction of the bill include the loss of eligibility for Title IV student aid (except for Pell grants and student loans).

Jacobson said if the bill were implemented, it would be a big change in the way the universities have been allowed to operate in the past.

"Is the federal government trying to dictate how the universities function?" said Jacobson.

Federal regulations have not been placed on the cost of schools before, and Jacobson said it is likely that Arizona would be penalized more than other schools, because Arizona schools are in the process of raising tuition.

Jacobson also pointed out that though Arizona is attempting to reach a specific goal with tuition, this is not the only state facing less funding from state legislatures.

She said that in large part, the citizens and students of Arizona should make attempts to let their legislators know how crucial this bill could be for the future of the universities.

Regents President Chris Herstam wrote a letter in early November to Rep. John Shadegg (R-Ariz.) stating the negative impact the bill would have on the financial situation of Arizona universities.

Herstam cited "serious concerns" with the bill, saying it "would hinder state and local decision making."

"These sanctions would hurt and penalize the neediest students who benefit the most from the Title IV financial assistance programs," Herstam said.