Wisconsin Gov. Scott McCallum called for a 5 percent increase in state spending over the next two years for the University of Wisconsin System when he signed the 2001-2003 budget on Aug. 30.  This compares with a 7 percent increase in tuition at the comprehensive campuses (8.4 percent at UW-Madison and UW-Milwaukee), which means that students are paying proportionally more now than before.

This is in contrast with a statewide survey conducted last fall by Chamberlain Research Consultants on behalf of the UW System. The survey found that 48 percent of the 600 people polled strongly agreed that the UW System is a “critical part of the state’s economy and quality of life” and “should receive additional state support to preserve and increase its value to Wisconsin citizens.”

The UW Board of Regents passed a budget of $3.4 billion last July, increasing annual tuition for the 2001-2002 academic year. Wisconsin-resident undergraduate students at 11 UW System comprehensive campuses and the 13 UW colleges will pay 7 percent more than last school year. That's an increase of $91 per semester at the comprehensive campuses and $79 per semester at the UW colleges.

UW-Madison and UW-Milwaukee tuition for undergraduate residents will increase by 8.4 percent -- the same 7 percent with another 1.4 percent added to pay for the Madison Initiative and Milwaukee Idea programs that are designed to promote competitiveness. This adds up to $139 increase per semester at UW-Madison and $134 per semester increase at UW-Milwaukee.

Room and board rates increased by an annual 5.2 percent, averaging $186 per year. The total room and board costs during 2001-2002 is $4,823 at UW-Madison, $3,604 at UW-Milwaukee and between $3,169 (UW-Green Bay) and $4,560 (UW-Parkside) at the comprehensive campuses.

According to the UW System Web page, one--third of the UW System operating budget is funded by state tax dollars. Tuition provides 16 percent and the remaining 51 percent comes from other sources, such as room and board, gifts and grants. 

Financial aid is a common concern that rises from the increase of tuition. The regents set tuition partly based on state money, but they can’t decide on financial aid. That’s an issue managed almost entirely by Wisconsin’s Higher Educational Aids Board.

The UW-Eau Claire financial aid annual report for 2000-2001 shows that most of financial aid comes from federal money. At UW-Eau Claire, 69 percent of financial aid comes from the federal government. Only 6 percent of the money comes from the state government. 

The most commonly used financial aid at UW-Eau Claire is the loan program. More and more students are acquiring loans, said Susan Ausman, assistant director of UW-Eau Claire financial aid.

"The state subsidizes Wisconsin resident tuition, even though most students don't feel like they're getting some financial aid through it, that's an invisible help," Ausman said.

Ausman said that when students get loans, they then leave school with an obligation to pay. Currently students are borrowing larger sums of money to be able to afford school, resulting in a longer payment schedule. And she said that not paying their loans has a big impact on their lives, not only immediately but later on as well. It can affect their credit rating and subsequent ability to obtain future loans (e.g., house mortgages and car loans), tax liabilities, and their ability to get jobs.

Kristen Arndt, human resources management senior student at UW-Eau Claire, said that she has taken loans every single year to be able to pay tuition. She has to rely on grants and loans  to manage to afford school. This year she has a loan for $2,500 and a grant for $2,000. 

Even though Arndt gets financial aid, she works 33 hours at $9.75 per hour for Midelfort Clinic as patient financial planner to pay her rent and bills. "I've always taken a little more money than tuition (on loans) to help me pay for rent," she said. She said she can't afford to work fewer hours a week. Some years ago, Arndt was only working 20 hours a week and Christmas came along.

"I didn't have enough money to buy presents for my family so I got a credit card," she said. "I'm still paying for it."

Arndt is concerned about tuition increases because she will need more money to pay for school. Arndt said she is glad she is graduating next May because she won't have to worry about taking new loans next year. She said that the problem with loans is the more money she takes in a loan, the more interest she will pay for it.

"It's more money out of my pocket in the long run," she said. 

Arndt is concerned about paying her $15,000 total loans after she graduates. "I'll be paying for five years or more. It depends on how much money I can actually make," she said.

UW Student Regent Tommie L. Jones Jr. voted for the tuition increase last July. He said that the budget includes many different things, and the UW System needs a good solid budget. We had to balance it somehow, he said. "We could have cut on enrollment, cut back every body's list of needs and the quality of education would have decreased." 

Students value education, and that's why they take loans to pay for it if they need to, he said. Students should always explore other financial aid opportunities besides loans, but it's crucial to remember that "education is important, education is not free, even if somebody else is paying for it," Jones said.

Elected UW Regent, Elizabeth Burmaster voted against the tuition increase. "As an elected official, I must speak for the hundreds of students who have contacted me, who are working two jobs, (who are) paying their own way, and for whom (the) tuition increase could mean the difference between staying enrolled or dropping out of college," Burmaster said.

She also said that the rate of increase of financial aid did not match the increase in tuition. "The UW System has led the way in developing innovative private partnerships and seeking private funding as state GPR (general purpose revenue) funding drastically diminished over the last years. The UW System has been forced to balance its budget on the backs of students," Burmaster said.

Burmaster thinks the UW System needs to keep its prices accessible to the general public, she said. "Not all great doctors, lawyers and teachers will come from the middle class. We must protect the opportunity for all to attend the UW System."