By Ben Suazo, Assistant News Editor
Josh Hillard and Dakota McCormick are first-years with a first-year opportunity. From now until Spring 2015, they will each be paying a rate of $17,800 for eight semesters of tuition fees. And that number will never rise or fall.
That's because Hillard and McCormick are part of the first freshman class to be offered a fixed tuition rate, guaranteed for four years of enrollment.
"It was emphasized [at Financial Aid Night] that Hofstra saw how other universities offered this program and thought it should offer something, too," Hillard said. "My parents thought that, in the long run, this would probably be a smart choice. Eventually it will save us money."
Not all freshmen are aware of the University's offer. Jenna Davi was happy to hear about a locked-in tuition rate, until she learned that the fall enrollment deadline had already passed.
"That's annoying… that sucks," she said. "I'm here on a scholarship, but for people who don't have that [the fixed rate], they could be transferring next year."
Upperclassmen were just as surprised as freshmen who missed the boat. Sophomore Katy Rebholz reacted with mixed feelings to the news, saying she was happy for future classes while lamenting that she was not given a similar choice.
"They're just starting this now?" said Rebholz. "I think it's really good for freshmen, but I wish that we had that [opportunity]…They should have started this four years ago."
Senior Jon Riemer appeared less affected, and said, "It's no surprise, honestly. It feels like everything has gotten better since we've gotten here."
If first-years involved in the option are worried about the constraints of their contract, Deborah Mulligan offers some reassurance. Mulligan is Director of Operations at the Office of the Bursar, and she explains that the fixed-rate contract does not punish students if they enroll for an extra year or choose January or Summer sessions.
"If a student needs extra classes to graduate beyond the typical four year scenario, they would pay the prevailing rate of tuition [for those additional classes]," Mulligan said in an email.
And yet, whether students will even save on the plan has yet to be seen. Two years ago, a semester's tuition was $14,540; in 2010, it was $15,375. This year, continuing undergrads were charged $16,250 while new students were charged $16,550. Hofstra tuition appears to be on a rising trend, and the fixed tuition is already more than a thousand dollars above the new undergrad rate.
Anthony Lucci, a graduate student working on his M.S. in Quantitative Finance, says he does not believe that choosing a fixed or variable rate will necessarily impact students in any drastically different way.
Using the past three years' tuition rates to assume a 6 percent growth rate, Lucci estimated what four years of tuition might look like, both with and without the fixed tuition plan. Eight semesters at the $17,800 fixed rate is $142,400, and Lucci estimated that a 2015 graduate might otherwise pay a total $144,800 of regular tuition. Add the 6.8 percent interest of a Federal Stafford Loan, and the difference is still close: $168,311 fixed and $170,330 regular, with interest compounded annually for four years.
"You might save $2,000," Lucci said of the fixed rate plan. "Really, at the end of the day, if you know for sure you can borrow at a low fixed rate and you'll still be here [at Hofstra] in four years, then yeah, it makes sense with interest."
As for the University's motive behind offering the plan now, Lucci offered some insight.
"They get more money right now. For them, [in four years] it's negligible."
Tuition rates are from the Bursar website and student eBill transactions.
Tuition has increased by about $1000 at the University since 2010-11. (Cody Heintz/The Chronicle)