The University of Alaska is eliminating an out-of-state tuition rate. In a special meeting Tuesday, the Board of Regents unanimously approved making in-state tuition available for all students, at all degree levels. The new tuition rates will go into effect in the 2027 fall semester.
Out-of-state tuition is currently at least double in-state tuition, depending on the campus and degree level. For example, the listed nonresident tuition rate for one lower level undergraduate credit at the University of Alaska Fairbanks is $875, while an undergraduate from Alaska would pay $251.
The university estimates 85% of nonresident students get a waiver and pay in-state tuition already, but that staff spend about 50 work hours a day to manage the waivers.
Luke Fulp is the university’s Chief Financial Officer. He said the way tuition is currently handled for non-resident students is complicated.
“It was a highly complex manual process of applying the rate and then partially or fully discounting it on that student bill, which also added to the complexity and the questions that would be generated by students about what is the true cost and not truly being able to see that until they saw their bill,” he said.
Fulp said eliminating non-resident tuition would streamline the administrative work and make tuition more transparent for non-resident students.
He says that campuses are expected to make up the revenue through increased enrollment. Of more than 20,000 students enrolled, about 15.8% come from out of state.
Currently, the Anchorage and Fairbanks campuses net more $1.4 million in additional funding from out of state tuition, according to the meeting agenda. That makes up 1.2% of the university’s tuition revenue.
Fulp said eliminating the out-of-state tuition would allow staff to focus on enrollment and improving the student experience instead.
Regent Joey Crum of Wasilla said this move makes the university a more competitive option with others in the Lower 48.
“We have to recognize where we’re at, what we’re competing with, and actually provide clarity and trustworthy numbers to attract people to Alaska,” he said. “We have something nobody else does, which is Alaska, and the more we can get here, the better we are moving forward.”
The University of Alaska Southeast began offering in-state tuition for all of its undergraduate students last year, but not for graduate students.
The new tuition rates are expected to go into effect next year in the fall. The Board of Regents are expected to consider updating tuition rates at its next meeting in September.
