June 21, 2021
Oakland University froze all tuition rates the previous academic year as part of a multi-faceted effort to help students and their families manage financial uncertainties during the COVID-19 pandemic. The university also distributed $13.9 million in emergency grant funding it received through the Coronavirus Aid, Relief and Economic Security Act (CARES) and the Coronavirus Response and Relief Supplemental Appropriations Act (HEERF II) to eligible students to help ease financial strains caused by the pandemic. Students not eligible for CARES Act funding were encouraged to apply for assistance from other institutional emergency funds, such as the OU COVID-19 Special Relief Fund.
In addition, the university has a no-fee policy and devotes substantial resources to financial aid. For FY2020, the average aid for a full-time resident undergraduate student was $4,421, reducing the net average cost to attend Oakland by nearly one-third.
On Monday, June 21, the Oakland University Board of Trustees approved a $286,605,969 general fund budget for the 2021-22 academic year. The 2021-22 budget includes a 4.2% tuition increase, which complies with the State of Michigan’s likely tuition restraint for annual tuition increases.
“We are extremely sensitive to the financial circumstances of our students and families,” said Oakland University President Ora Hirsch Pescovitz. “Our timely responsiveness can be measured in the amount of financial aid, scholarships and other student-support we provide, along with the strategic use of federal relief funding, to help offset our students’ educational costs related to the pandemic.”
Pescovitz added, “Considering that Oakland has the lowest per-student appropriation with an all-in tuition cost below the state average, our sound fiscal approach fairly and prudently increases revenue while continuing to provide an engaging student educational experience."
While the state’s FY2022 budget has not yet been finalized, the university’s budget is based upon the Governor’s and Senate’s higher education appropriation budget proposals, which call for a 2.0% increase in state aid. For Oakland, this translates to an anticipated state appropriation of $54,476,400, 17.4% of the university’s 2021-22 budget. Oakland’s financial aid budget (excluding the School of Medicine) is $52.6 million, nearly its entire anticipated state appropriation for FY2022. In essence, the university is awarding 97% of its state funding directly to students in an effort to reduce their net cost of attendance.
The university is looking forward to offering a wide variety of in-person, hybrid and online courses, along with an active, full-service residential campus. In April, OU’s Board of Trustees approved the 2021-22 University Housing budget, which included no increase in room and board rates. With the tuition increase, OU’s 2021-22 full-time resident undergraduate tuition for incoming freshmen will be $14,025.
Currently, Oakland has a state appropriation of $3,079 per student, the lowest per-student appropriation among Michigan’s 15 public universities. It also has the lowest state appropriation per degree awarded. However, it remains among the lowest-cost universities for entering freshmen. OU’s Golden Grizzlies Tuition Guarantee allows eligible incoming freshmen to attend OU free for four years and the university offers a plethora of need- and merit-based scholarships for students. Nearly 70% of OU students receive financial aid to help them cover some or all of their tuition.
Students’ impact on the state continues after graduation as 99% of employed OU graduates work in Michigan, with higher-than-average median post-graduation starting salaries and lower-than-average student debt. As the state begins to emerge from the pandemic, Oakland remains committed to providing high-quality academic programs and student services, while controlling costs and maximizing resources. Since 2003, OU has saved over $71 million through budget reduction and cost containment measures, including energy savings projects, renegotiating vendor contracts and reducing employee-related costs.