A bill standardizing rules for flat-rate tuition programs around the state is scheduled for hearing in the Senate today. If passed, it will further the Legislature's efforts in encouraging college students to graduate on time.
Senate Bill 32, authored by state Sen. Judith Zaffirini, D-Laredo, backs the University's flat-rate tuition plan passed by the UT Board of Regents on March 10. It has been on the Senate's intent calendar for the past two days but was not brought up for a vote Tuesday.
SB 32 mandates that state institutions of higher education that implement flat-rate tuition may charge no more than the average amount charged for 14 semester credit hours for undergraduate students and nine semester credit hours for graduate students.
UT Vice President and Chief Financial Officer Kevin Hegarty said the University "wholeheartedly" endorses actions, such as SB 32, that simplify and lower administrative costs.
"We're all about spending less on administration for what has to happen in the University and more on activities that directly impact the students, such as hiring more professors," Hegarty said.
Under current flat-rate tuition laws, Hegarty said, the University will package tuition and fees into one simplified number, but it is required to divide the money into separate fee and tuition "buckets" according to what each amount is appropriated for. Zaffirini's bill would make this process easier and simpler, Hegarty said, because it sets the rules under one law.
The bill also simplifies flat-rate tuition bills for students, because it mandates that the amount charged by a state institution of higher education must cover all tuition and fees. This changes previous laws that only required tuition to be covered by the flat-rate amount.
Hegarty said flat rate encourages students to take more hours and graduate on time, because they are already paying for 14 hours of classes. He said pressuring students to take heavier course loads will not diminish the quality of student life on campus.
"The strength of this campus is that students have time to be involved in student life in some aspect other than going to class," he said. "We want to make sure that's possible."
Ray Grasshoff, spokesman for the Texas Higher Education Coordinating Board, said there are many benefits to programs that encourage students to graduate quickly.
"For the state, if students run through more quickly, it allows the state to serve more students with the same resources," he said. "For students, it's beneficial, because they get into the workforce more quickly and start earning money more quickly. And it reduces the cost of going to college."
Senate Bill 34, which the Senate passed on March 31, also provides incentives for students to graduate on time. The bill, also authored by Zaffirini, amends the Education Code's tuition rebate program by adding an additional requirement. In order to be eligible for a tuition rebate under the bill, a student must also meet the requirements to be forgiven for Texas B-On-Time loans, which are non-need based and noninterest based loans that do not have to be repaid if students graduate on time.
This means in order to receive a tuition rebate, students must graduate within the time allotted by the degree plan. The new bill does not specify the amount of the rebate, but previous law set it at $1,000.
While the University has yet to encounter problems with the current tuition rebate program, it may pose administrative complications, according to Don Davis, UT associate director of Student Financial Services.
Davis said rebates lower the cost of education for students receiving financial aid, meaning they may have to be used to pay back the financial aid students received rather than going to the students.
He said tuition rebates offer some incentive to students to graduate on time, but he is unsure of the number of students who take advantage of the rebate.
Kim Krieg, an academic adviser for the College of Liberal Arts, said the percentage of students applying for the rebate has increased with growing awareness of the program.
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