UMaine System holds line on tuition, boosts grants and scholarships

Courtesy / University of Maine System The pie charts show the increase since 2013 in the number of students in the University of Maine System who are receiving "gift aid," which lowers their student expenses and debt.

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By James McCarthy

Chancellor James Page and the presidents of Maine’s public universities announced today that almost 25% of Maine students in the University of Maine System this spring are attending college free of tuition and fee expenses.

The 4,077 Maine students whose tuition and fee obligations were completely covered with grant and scholarship aid represent nearly 24.4% of the 16,718 Maine undergraduates enrolled this semester.

Last year the financial aid offices of Maine’s public universities provided 23,948 students with an average financial aid award of $12,096, an all-time-high across the system. Cost of attendance can include other expenses in addition to tuition and fees and eligibility for aid, which can include student loans, varies from student to student.

Maine’s universities are able to provide free tuition and fee attendance for 4,077 Maine students because of the work done across the campuses and with state partners to close the gap between college costs and available aid resources.

The University of Maine System is a founding partner of MaineSpark, an education and workforce initiative with a common goal: By 2025 60% of Mainers will hold education and workforce credentials that position Maine and its families for success.

Here are some highlights of today’s report:

40% increase in grant and scholarship aid: University leaders are preparing to invest another $6.6 million in grant and scholarship aid for the upcoming academic year, making $93.2 million available to reduce student expenses and debt. Pending Board of Trustee approval of the fiscal year 2020 university budget next month, the UMaine System will have increased gift aid by 40% ($26.6 million) over five years. The Maine State Grant, which is funded by the Legislature, was also increased in 2015 to address higher education affordability and student loan debt.
Gift aid surpasses loans in university financial aid packages: In the 2013-14 academic year student loans made up the majority of the aid (52%) awarded through university financial aid packages. Grant and scholarship aid was 46%. Over the course of that year, the universities awarded $223 in loans for every credit hour produced and $194 in gift aid. Today, the majority of aid awarded to students by the universities is gift aid, reducing the cost of attendance and student debt. In the 2017-18 academic year gift aid made up 55% of the awards. Loans comprised 43% of the aid awarded. Loan awards per-credit-hour-produced have fallen 14% to $191 over five years. Gift aid per-credit-hour has increased by 24% to $240.
$9,324 in four-year degree financial aid savings: The changing trends in financial aid resources and awards is producing a financial aid savings of $77.70 per-credit-hour-produced by the University of Maine System ($45.84 in gift aid increase and a $31.86 loan savings). Over the course of a 120-credit hour degree, the financial aid savings is $9,324. Every student’s financial situation is unique and this calculation does not reflect changes in private loan activity.
Tuition and fee costs increase less than 1% over five years: The University of Maine System froze tuition for six years and continues to cap adjustments to tuition at the rate of inflation. Factoring for inflation, in-state tuition and fees increased only 0.98% in Maine over the last five years. Maine has one of the nation’s strongest commitments to public higher education affordability according to the College Board’s 2018 Trends in College Pricing.

The proposed fiscal year 2020 university budget includes an in-state undergraduate tuition adjustment of 2.5% for most campuses based on the consumer price index. The $6.6 million investment in new institutional grant and scholarship resources is a 7.62% increase over the fiscal year 2019 budget.

“Affordability and access for Maine students have been top priorities for Chancellor Page, the campus presidents and the Board of Trustees over the last seven years,” said Trevor Hustus of Hollis, a student trustee on the UMaine board. “Holding the line on tuition while increasing financial aid resources by 40% are paying off for students, lowering our cost of attendance, and reducing reliance on student loans."

The fiscal year 2020 university budget currently under consideration by the board includes a 3% increase in state appropriation proposed by Gov. Janet Mills in her biennial budget proposal. The governor has also proposed investments in early college education and adult degree completion programs that are critical to expanding access to Maine learners of all ages.