Purdue to freeze tuition for 2 years

INDIANAPOLIS (WISH) - Less than two months at Purdue University and President Mitch Daniels has made a bold move. He announced a tuition freeze for the next two years.

“We spend $2 billion a year around here, and $1 billion is more or less thought of as the general fund budget,” says Purdue President Mitch Daniels. “This is what a couple percent maybe each year, I'm pretty sure we can do this if we set our minds to it.”

President Daniels hopes the freeze will help students during a flat economy.

"He's had collaborations with people and administrators at Purdue and this is certainly a nice gesture with families and students to say for two years tuition will not be raised," says Bill Rieber an economics professor at Butler University.

Although it's expected to cost Purdue $40 million in the first year, Professor Bill Rieber says the former governor has done his homework. The professor says, the sluggish job market has made it difficult for students to pay back their student loans.

“The last five years the number of students under 30 who are at least 90 days late in their payments has risen from 25 percent to 35 percent,” says Rieber.

For the current school year it costs Purdue University in-state residents $9,900 a year and non-residents $28,702 a year. IUPUI in-state students pay $8,605 a year and out-of-state pays $29,062. At the Bloomington campus residents pay $10,033 and those not living in Indiana pay $31,483 a year.

While Purdue's tuition will stay the same the next two years, the IU Board of Trustees has still not made a decision, but all eyes will be on Purdue.

“They're certainly keep it in mind if Purdue is freezing their tuition then they'll have to rethink what they're tuition increases likely will be,” says Rieber.

IU spokesman Mark Land says President Michael McRobbie will make his tuition recommendation to the board of trustees soon. Land pointed out last year they gave a 25 percent discount for summer tuition, which will continue this year.