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Tuition Model – NDSU NDSU is requesting to implement this new Tuition Model beginning Fall 2018. This planned tuition model will be revenue neutral to NDSU. Tuition Model Principles (approved by the SBHE October 27, 2016):

1. Tuition will be charged at a flat rate to be assessed at either 12 or 13 semester hours.

NDSU proposes to charge tuition at a flat rate capped at 13 semester hours. 13 credits will be utilized, as the additional credit will provide incentive for students to take an extra class to be full-time for tuition purposes. For example, students who take four 3-credit classes would be incentivized to take an additional 3-credit class for a total of 15 credits for the term. This tuition model will promote lower time-to-degree completion.

The 13-semester hour cap will be implemented for all terms.

The undergraduate part-time rate will equal 107% of 1/13th of the capped rate for 13 credits. This provides for a part-time rate approximately equal to the current rate.

The graduate part-time rate will equal 110% of the undergraduate part-time rate.

2. To the greatest extent possible, blend together tuition and non-mandatory fees; however campuses may retain a separate distance education access fee, as deemed necessary.

All remaining program fees will be blended into the base tuition rate. Previously NDSU blended program fees effective Fall 2012 for Architecture, Engineering, Nursing and Pharmacy into differential tuition. In Fall 2013 differential tuition was established for Business undergraduate students.

All course fees will be blended into the base tuition rate with the exception of the following course fees that will remain: Equine Fees, Field Trips / Study trips within the U.S., Study Abroad charges, Music lessons and Aviation fees. These fees represent high cost fees and/or individual instructor time.

The course fee for Business graduate courses will be eliminated and differential tuition will be established for Business graduate students. The request to establish this differential tuition rate category will be presented separately under another proposal.

Mandatory Student Fees will be retained and not integrated into tuition. This includes the ConnectND Fee, NDSA Fee and all NDSU Mandatory Student Fees: Activity, Union Bond, Student Health, Wellness Center, Career Services, Library and Technology.

Separate distance education access fees already established that will be remain: o Online Access Fee for Masters of Managerial Logistics (MML) classes – This fee was

developed as a negotiated rate for programing offered to the Department of Defense which may also be accessed by civilians.

o Interactive Video Networking Fee – This fee is assessed on classes taken at non-Fargo locations.

3. To the greatest extent possible, on-campus and on-line tuition rates should be the same and consistent within residency categories.

Previously online, degree-eligible classes, were not included in the tuition cap. Online classes will now be integrated, and billed as part of the capped tuition. Therefore, all courses for which the students earn academic credit regardless of delivery mode will be

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included in the capped tuition rate. The integration of the online tuition will provide greater transparency to students.

Online tuition will be charged within the residency categories resulting in students paying the same tuition regardless if the student is on campus or online. Charging online tuition within residency categories (rather than charging one rate to all resident and non-resident students) ensures ND students are not subsidizing non-ND students. In addition, the charging of online tuition at residency rates meets the MN Reciprocity Agreement requirements that MN students pay 112% of the ND students.

Math and English remedial activity will both be billed as part of the tuition rate cap. Previously there was inconsistent charging, as remedial Math was billed separately while remedial English was integrated into the capped tuition.

Intensive English Language Program (for non-native speakers) credits were previously billed per credit at the ND residency rate. These credits will now be billed at the capped residency rates.

Credits not integrated into the tuition model: o Internship credits offered through the Career Center – These internship credits will

continue being billed separately from the capped tuition and will be billed at a rate equal to the ND Resident rate. This tuition rate charge is in agreement with SBHE Policy 805.3.1 Distance Learning Courses since the activity occurs at an off campus location.

o Graduate credits offered through the School of Education at participating K-12 schools – These credits will continue being billed separately from the capped tuition and will be billed at a rate equal to the ND Resident rate. This tuition rate charge is in agreement with SBHE Policy 805.3.1 Distance Learning Courses since the activity occurs at an off campus location.

o Project Lead the Way (PLTW) Articulated Credit Fee – This fee is assessed to secondary school students who have successfully completed PLTW courses and are applying for transcripted college credit from NDSU. PLTW is a hands-on, activities-project-problem-based curriculum that provides students with a foundation and proven path to post-secondary training and career success in STEM-related fields.

o GPIDEA tuition – NDSU is a partner of the Great Plains Interactive Distance Education Alliance (GPIDEA). GPIDEA is a partnership of 19 public universities providing access to the best educational opportunities by collaboratively developing and delivering high quality, online academic programs. Great Plains IDEA is an academic alliance that offers fully online graduate and undergraduate coursework in high demand fields of Agriculture and Human Sciences. Tuition, set by GPIDEA, is assessed at the same rate across all institutions.

4. The SBHE may consider special institutional/program tuition rates based on unique markets,

geographic location, enrollment considerations and/or the variable cost of unique academic programs.

As stated in Principle #2, NDSU blended program fees effective Fall 2012 for Architecture, Engineering, Nursing and Pharmacy into differential tuition. In Fall 2013 differential tuition was established for Business undergraduate students. NDSU is submitting a separate proposal to eliminate the course fee for Business graduate courses and instead establish differential tuition for MBA students effective Fall 2018.

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5. Assess tuition based on residency as follows:

The current MN Reciprocity Agreement has the established rates set at 112% for undergrad and 127% for graduate with a clause for possible increase to 115% for undergrad and 130% for graduate. NDSU is recommending the MN Reciprocity rate remain at the current approved levels of 112% and 127%. Increasing the rates further potentially affects the recruitment of MN students, as the MN Reciprocity rate is higher than MN in-state tuition. MN students have a positive impact to the economy of Fargo and to the state of ND. Many MN students remain in ND after obtaining their degree.

WRGP – NDSU is requesting an exception to continue participating in the Western Regional Graduate Program (WRGP) which is administered under the Western Interstate Commission for Higher Education (WICHE). Students enrolled in these programs pay the resident tuition rate. NDSU currently only participates two programs within the WRGP: 1) MS or PhD in Coatings and Polymeric Materials and 2) Grad Certificate or Master of Public Health. During FY17, seven graduate students participated in this program.

Residency Tuition Model Principle Current Rate Proposed Rate

ND 1.0 1.00 1.00

MN Undergraduate Per Agreement 1.12 1.12 *

MN Graduate Per Agreement 1.27 1.27 *

MN Professional

Not Addressed - Change

not proposed at this time 1.09 1.09

Other US NonResidents,

Manitoba & Saskatchewan:

- Contiguous & Alumni Dep

(Request only for undergrad &

professional, not graduate) No lower than 1.2 1.50 1.20

- WICHE and MSEP No lower than 1.2 1.50 1.50

- Other US NonResidents No lower than 1.2 2.67 1.50

- WRGP No lower than 1.2 1.00 1.00 *

International No lower than 1.75 2.67 1.75

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Evaluation of Undergraduate Tuition Rates:

Evaluation of Graduate Tuition Rates:

Undergraduate Base Rate ND

MN

112%

Contig &

Alumni Dep

Old 150%

New 120%

WICHE/MHEC

150%

US NonRes

Old 267%

New 150%

Int'l

Old 267%

New 175%

PT Per credit rate - FY17 historical 304.69$ 341.25$ 457.04$ 457.04$ 813.53$ 813.53$

PT Per credit rate - New (before 4% incr for FY18) 300.67$ 336.75$ 360.80$ 451.01$ 451.01$ 526.17$

Increase (Decrease) in PT rate (4.02)$ (4.50)$ (96.24)$ (6.04)$ (362.53)$ (287.36)$

% change in rate -1% -1% -21% -1% -45% -35%

FT Rate @ 12 cr - FY17 historical (online additional charge) 3,462$ 3,878$ 5,193$ 5,193$ 9,245$ 9,244$

FT Rate @ 13 cr - New (before 4% incr for FY18) (online included) 3,653$ 4,091$ 4,384$ 5,479$ 5,479$ 6,392$

Increase (Decrease) in FT rate 191$ 214$ (809)$ 286$ (3,766)$ (2,852)$

% change in rate 5.5% 5.5% -15.6% 5.5% -40.7% -30.8%

-1.1% 1.0% -15.3% -3.2%

Ave # of FT students affected 4,588 5,056 143 428 75 221

New FT Undergraduate Rates Ratio

FY17

Recalculated

Rate

Recalculated

Rate @ 4%

adj for FY18

NDSU

Cost of

Attendance *

Comparative

University Tuition Rate

Cost of

Attendance

ND 1.00 3,653$ 3,799$ 17,300$

MN 1.12 4,091$ 4,255$ 18,211$ MSUM 3,705$ 16,750$

Contiguous & Alumni Dependent 1.20 4,384$ 4,559$ 18,821$ SDSU 3,600$ 15,570$

US NonResidents 1.50 5,479$ 5,698$ 21,098$ Univ of Wisc 5,267$ 21,331$

International Students 1.75 6,392$ 6,648$ 22,997$

* Cost of Attendance includes tuition, mandatory fees, housing and dining.

% change in net revenue after online tuition integration and

modification in waivers 1.4%

Graduate Base Rate (ND Rate = 110% of undegrad rate) ND

MN

127%

Contig/MSEP

150%

US NonRes

Old 267%

New 150%

Int'l

Old 267%

New 175%

PT Per credit rate - FY17 historical 309.46$ 393.02$ 464.19$ 826.26$ 826.26$

PT Per credit rate - New (before 4% incr for FY18) 330.74$ 420.04$ 496.11$ 496.11$ 735.06$

Increase (Decrease) in PT rate 21.28$ 27.02$ 31.92$ (330.15)$ (91.20)$

% change in rate 6.9% 6.9% 6.9% -40.0% -11.0%

4.9% 5.3% 1.0%

Ave # of students Fall/Spring 862 187 250 146 563

New Graduate Rates Ratio

FY17

Recalculated

Rate

Recalculated

Rate @ 4%

adj for FY18

Comparative

University Rate

ND 1.00 330.74$ 343.97$ MSUM 374.00$

MN 1.27 420.04$ 436.84$ SDSU 314.70$

US NonResidents 1.50 496.11$ 515.95$ Univ of Wisc 793.86$

International Students 1.75 735.06$ 764.46$

5.7%

% change in net revenue after online tuition integration and

modification in waivers

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Course Fees and Distance Education Access Fees retained:

Course Fees: Equine Fees, Field Trips / Study trips within the U.S., Study Abroad charges, Musiclessons and Aviation fees.

Distance Education Access Fees: MML Access Fee and IVN Fee

Graduate Program Fees Amount Billed

Adv. Athletic Training Prog Fee $30,324

Ath. Training Masters Prog Fee $26,334

Total Graduate Program Fees $56,658

Undergraduate Program Fees Amount Billed

Dietetics Education Program Fee $48,750

Education Program Fee $81,375

Exercise Science Program Fee $61,863

Interior Design Program Fee $9,563

Phys & Health Educ-Program Fee $27,930

Sports Management Prog Fee $51,015

Undergraduate Program Fees Total $280,495

Total Program Fees $337,153

Graduate Fees Retained Amount Billed

Architecture Study Tour Fee $2,000

IVN Fee $38,387

Music Lesson Fee $10,175

Study Abroad User Fee $6,600

MML Access Fee $48,913

Total Graduate Fees Retained $156,538

Undergraduate Fees Retained Amount Billed

Architecture Study Tour Fee $25,000

Aviation Course Fee $7,950

Equine Course Fee $15,900

Music Lesson Fee $112,956

Study Abroad User Fee $65,275

Total Undergraduate Fees Retained $229,885

Total Course and Distance Fees Retained $386,423

Program Fees Integrated into Base Tuition:

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Course Fees Integrated into Base Tuition:

Undergraduate Fees Integrated Amount Billed Graduate Fees Integrated Amount Billed

Accounting Course Fee $175 Art Course Fee $100

ANSC Course Fee $975 BioChemistry Course Fee $1,230

Apparel & Textiles Course Fee $11,111 CFS Course Fee $35

Arch/Land Arch Course Fee $56,160 Coatings & Polymeric Course Fee $370

ARSC Course Fee $1,375 Counselor Ed Course Fee $4,100

Art Course Fee $46,331 ECE Course Fee $25

BioChemistry Course Fee $5,003 Education Course Fee $1,338

Biology Course Fee 18409 $848 Geography Course Fee $700

Biology Course Fee 18501 $8,989 Geology Course Fee $60

Biology Course Fee 18505 $6,341 Microbiology Course Fee $570

Biology Course Fee 18852 $11,483 Natural Resource Course Fee $300

Biology Course Fee 19102 $2,925 Physics Lab Fee $25

Biology Course Fee 19186 $2,415 Zoology Course Fee 18412 $60

Botany Course Fee $744 Zoology Course Fee 18433 $100

Business Course Fee $650 Zoology Course Fee 18858 $150

CFS Course Fee $210 Zoology Course Fee 19056 $150

Chemistry Course Fee $98,026 Zoology Course Fee 19101 $20

CLS Course Fee $545 Total Graduate Course Fees $9,333

Coatings & Polymeric Course Fee $370

Computer Science Course Fee $44,855

Dietetics Course Fee $24,219

ECE Course Fee $150

Education Access Fee $19,000

Education Course Fee $3,150

Genetics Laboratory Course Fee $3,843

Geography Course Fee 18474 $1,475

Geology Course Fee 18469 $4,839

Geology Course Fee 19183 $930

Geology Course Fee 19184 $908

HNES Course Fee $90,116

HTM Course Fee $17,323

IME Course Fee $7,140

IME Welding Course Fee $3,240

Interior Design Course Fee $4,213

Math Course Fee $84,679

Microbiology Course Fee $23,388

Natural Resource Course Fee $850

Physics Course Fee $8,610

Physics Lab Fee $22,829

Plant Sciences Course Fee $3,510

Theatre Course Fee $6,270

Vet Science Course Fee $30,501

Zoology Course Fee 18412 $240

Zoology Course Fee 18433 $2,100

Zoology Course Fee 18436 $560

Zoology Course Fee 18858 $1,020

Zoology Course Fee 19056 $1,140

zoology Course Fee 19101 $500

Zoology Course Fee 19185 $1,039

Zoology Course Fees 19088 $720

Total Undergraduate Course Fees $668,029

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Evaluation of Base Undergrad Tuition:

Undergrad Credits (Fall/Spring) ND

MN

112%

Contiguous &

Alumni Dep

120%

US NonRes

150%

Int'l Students

175% Adjusted Total

Less than 13 credits 8,067 5,272 519 806 110 14,774

13 or more credits (capped) 116,789 127,313 3,705 12,778 5,886 266,471

124,856 132,585 4,224 13,584 5,996 281,245

# of students <13 cr 1,405 867 54 166 18 2,510

13 or more credits 9,175 10,112 285 1,006 441 21,019

10,580 10,979 339 1,172 459 23,529

Residency % 100.0% 112.0% 120.0% 150.0% 175.0%

Per credit rate < 13 cr load 300.67$ 336.75$ 360.80$ 451.01$ 526.17$

Total credits < 13 cr load 8,067 5,272 519 806 110 14,774

Rev from students < 13 cr 2,425,505$ 1,775,348$ 187,257$ 363,510$ 57,879$ 4,809,499$

Flat Rate for 13+ credits 3,653.00$ 4,091.30$ 4,383.60$ 5,479.40$ 6,392.37$

# of students >= 13 9,175 10,112 285 1,006 441 21,019

33,516,275$ 41,371,226$ 1,249,326$ 5,512,276$ 2,819,035$ 84,468,138$

New Calculated Tuition 35,941,780 43,146,574 1,436,583 5,875,786 2,876,914 89,277,637$

FY17 Tuition 35,834,806 42,314,883 1,726,287 6,071,494 4,014,542 89,962,012$

Increase (Decrease) in Tuition 106,974 831,691 (289,704) (195,708) (1,137,628) (684,375)$

FY17 Program Fees removed (139,683) (98,260) (20,590) - (258,533)$

FY17 Course Fees removed (290,006) (302,166) (1,245) (44,393) (15,660) (653,470)$

Increase (Decrease) in Total Revenue (322,715) 431,265 (290,949) (260,691) (1,153,288) (1,596,378)$

Reduced (Add'l) waivers/scholar due to rate change (85,019) 9,532 26,532 142,193 17,496 110,734$

Eliminate NR wvr to Contig Rate 203,226 203,226$

Reduced Int'l Waivers 1,006,474 1,006,474$

Increased revenue due to decreased waivers (85,019) 9,532 26,532 345,419 1,023,970 1,320,434$

Net Revenue Change for Undergrad Fall/Spring (407,734) 440,797 (264,417) 84,728 (129,318) (275,944)$

-1.1% 1.0% -15.3% 1.4% -3.2% -0.3%

Net Revenue Change for Undergrad Summer (25,898) 13,913 7,546 116,788 27,048 139,397$

Net Revenue Change for Graduate 174,546 72,398 - 183,991 67,830 498,764$

Total Net Revenue Change -Grad & Undergrad (259,087) 527,108 (256,870) 385,507 (34,440) 362,217$

% Change - Cushion for Variable Factors 0.40%

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Evaluation of Base Graduate Tuition:

Graduate Credits ND

MN

127%

US NonRes

On-Campus

150%

Int'l Students

175% Adjusted Total

# of credits 11,641 3,544 5,836 8,401 29,422

Residency % 100.0% 127.0% 150.0% 175.0%

Per credit rate 330.74$ 420.04$ 496.11$ 735.06$

Total credits 11,641 3,544 5,836 8,401 29,422

Rev from students 3,850,109$ 1,488,608$ 2,895,272$ 6,175,264$ 14,409,253$

Calculated Tuition 3,850,109 1,488,608 2,895,272 6,175,264 14,409,253$

FY17 Revenue 3,566,289 1,365,632 3,210,182 6,784,826 14,926,929$

Change in Revenue 283,820 122,976 (314,910) (609,562) (517,676)$

FY17 Program Fees removed (13,110) (8,892) (32,376) (2,280) (56,658)$

FY17 Course Fees removed (3,955) (1,410) (2,293) (1,675) (9,333)$

Total Revenue change 266,755 112,674 (349,579) (613,517) (583,667)$

Reduced (Additional) misc waivers (10,332) (1,000) 547 (10,785)$

Reduced (Additional) Grad Asst Wvrs (81,877) (39,276) 533,570 639,965 1,052,382$

Reduced Int'l Waivers 40,835 40,835$

Decrease (Incr) in Waivers (92,209) (40,276) 533,570 681,347 1,082,432$

Net Revenue Change 174,546 72,398 183,991 67,830 498,764$

NDSU MBA Program Request for Differential Tuition The College of Business is currently in the process of turning around the NDSU MBA program. We plan to launch our new, improved program in Fall 2018. The existing program was criticized as taking too long to complete, being too inflexible for working managers (our target market), and for not offering opportunities to gain any more specialist knowledge. These criticisms, together with relatively low awareness of the program in the community, have been given as key reasons why the program has lost some market share over the past decade. The new MBA program has been designed to overcome these issues, to make the program more relevant to our student body and to the local community we serve. The new program will continue to teach all of the core curriculum areas, but each core course will be a two credit, 8-week long course instead of a three-credit, 16-week long course. This will increase flexibility for students, allowing them to vary their course load depending on their workload and personal lives. It will also allow most students to complete their MBA more quickly. Additionally, it will facilitate rolling admissions in the future. By making the core requirements a total of 16 credits rather than the existing 24, we also open the opportunity to develop electives and certificates to complete the total required 30 credits. We are currently developing four 8-credit certificates, each of which consists of four 2-credit courses. The topics currently under development are Data Analytics, Digital Marketing, Finance, and Leadership & Management. In addition to our own certificates, a slim core allows us to collaborate with the College of Health Professions and the College of Agriculture, Food Systems, and Natural Resources on MBAs with an emphasis in Health and Ag, respectively. Joint MBA concepts exist, but until we slim the core, students are not interested in a degree that demands a massive number of credits (and time) to complete. Together with our core courses, the certificate and cross-college opportunities will prepare students for higher-level management positions in the future, while also gaining skills they can put to work immediately. Because the certificates will be available under open enrollment as well as to students in the MBA Program, local employers and individuals will be able to access them and gain needed knowledge without having to make the commitment to getting an entire MBA. In addition to serving the local community and building stronger ties with businesses, we believe this feature will also have a positive impact on MBA enrollment, as students who begin with a certificate may subsequently decide to continue to finish the entire MBA. The new program will continue to maintain our high quality standards. The increase in flexibility will not come at the expense of rigor. We will continue our practice of using terminal degree tenure track faculty who have active research agendas, and, where possible, experience as practitioners. To maintain our relevance of the new program, we plan to have ongoing curriculum renewal, which will also help attract and maintain a strong, high performing student body.

To support the successful development and launch of our new MBA Program, we need to better market the program and reach out to employers in the area. For these purposes, we propose a guest speaker series and hiring a full-time recruiter and industry relations person. We also propose having a full-time program administrator to better serve students. The costs of delivering the improved program and implementing its roll out will be substantial for the College. Our program currently has a lower per credit tuition level than any local AACSB or non-AACSB accredited business school. Even with the increases we propose, we will still be a relatively low priced option, both in terms of the per credit price and also for the total cost to complete, since our competitor programs have higher number of credits required. We would like to increase our differential tuition rate to cover our needs for this new and improved program. Below, we present an estimate of the increase needed. We also provide information about prices of competitive programs. Estimates of costs and new fees for the renewed MBA program and Graduate Certificates

Cost items Estimate ($)

Rationale

Instructional Cost 507,000 Three FTEs each teaching five courses. Assume $130K plus 30% benefits each.

MBA Program Directing/Specialized Advising

125,000 AACSB 2015 Salary Survey ($93.5K) plus 30% benefits with some adjustment for inflation

Industry Relation/Direct Marketing Staff

115,000 AACSB 2015 Salary Survey ($84.7K) plus 30% benefits with some adjustment for inflation

Business Databases for Graduate Projects/Research

30,000 Cost of maintaining relevant research databases (Market Insight, etc.) needed for graduate projects and to maintain faculty research qualifications.

Curriculum upgrade and renewal every 3 years

15,000 $1,500 per credit to facilitate regular, ongoing updates and improvement of faculty teaching skill sets

Guest Speakers 30,000 10 guest speaker events per year

General Operating and Miscellaneous Expenses

50,000 Based upon approximately 6% of the above

Total 872,000

Program Cost per Student Credit

542

Total expenses divided by 1,610 student credit hours. This target is 30 students on a 1.5-year completion plan 30 students on a two-year completion plan, 30 students on a three-year completion plan and 20 students working on Certificates.

Program Cost per Student 16,260 Total for 30 credits

Current Tuition/Fee Structure

Proposed Base Tuition Per Credit for FY18/19 under the new tuition model

357.73

Current MBA Course Fee 44.50 This will be eliminated and integrated into the differential rate

Total Current MBA tuition & Course Fees per Credit

402.23

Increase tuition per credit 140 (35% increase in cost)

Proposed ND Differential Tuition Rate for MBA and Certificates – Fall 2018

$542 Equals Program Cost per Student Credit

Total degree completion cost of nearby MBA Programs UMN—Twin Cities $80,000 Univ of St. Thomas (Flex) $68,721 UMN-Duluth (Rochester) $32,800 UMN-Duluth (Duluth) $29,250 St. Cloud State (Twin Cities) $29,000 St. Cloud State (St. Cloud) $21,000 MSU—Mankato: $20,000 NDSU – proposed $16,260 University of Mary: $15,000 Univ of S. Dakota (Online) $14,600 MSU—Moorhead: $14,100 University of South Dakota $12,000 UND $11,800 NDSU - current ~$11,000 University of Montana $9,000

Per credit tuition of nearby AACSB accredited MBA Programs MSUM: $375 MSU Mankato: $588.50 St. Cloud State: $589 UMD: $922 UND: $360 USD: $313.15 Fees extra. Most programs have more credits than we do. Per credit tuition of other nearby schools (Non-AACSB) University of Mary: $570/credit but offers a discounted MBA for $15,000