Tuition will stay flat for in-state Indiana University undergraduate students through the next two years, despite a nearly $100 million reduction in state and federal appropriations.
In-state undergraduate tuition at IU Bloomington will cost about $12,143 per year through 2027. IU’s board of trustees voted to approve the tuition freeze alongside next year’s operating budget during their June 12 meeting.
The tuition hold comes even as IU faces sharp budget reductions. The latest state budget includes a $60 million reduction in funding for the university system. On top of that, IU’s Chief Financial Officer Jason Dudich said as much as $40 million could be at risk from lost federal grants and “indirect cost revenue.”
Dudich says IU will address the budget shortcomings by eliminating vacant positions and salary reserves, reducing some employee benefits and curbing travel and supplies expenses. Combined, Dudich said the reductions will save IU an estimated $100 million.
“Students are priority number one, and we need to continue to support them,” Dudich said.
Despite tuition rates holding flat for in-state undergraduates, IU expects to take in $36 million more in tuition revenue in the 2026-27 fiscal year, due both to increased enrollment projections and minor tuition increases for out-of-state undergraduates and graduate students. Out-of-state undergraduate tuition will increase by 1% and tuition for both in and out-of-state graduate students will increase by 2% per year for the next two years.
Dudich said the university expects to save about $16 million through reductions to compensation, including voluntary retirements and the elimination of vacant positions and salary reserves. During the June 12 meeting, the board also voted to approve a 2% salary increase for faculty.
Compensation makes up well over half of the university’s operating budget — about $2.58 million of the $4.5 billion budget in 2026.
Reach Brian Rosenzweig at brian@heraldt.com. Follow him on X/Twitter at @brianwritesnews.
This article originally appeared on The Herald-Times: IU to freeze in-state undergraduate tuition through 2027, with $100M drop in funding
Reporting by Brian Rosenzweig, The Herald-Times / The Herald-Times
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