Editor’s note: The Penn State Board of Trustees voted to approve the University's 2027-28 operating budget and tuition and fees schedules, as outlined below, during its July 17 meeting at Pennsylvania College of Technology.
WILLIAMSPORT, Pa. — The Penn State Board of Trustees Committee on Finance and Investment today (July 16) advanced a proposed 2027-28 University operating budget that would freeze tuition for all Pennsylvania resident undergraduates at the Commonwealth Campuses for a fifth consecutive year, while maintaining a balanced Education and General (E&G) budget.
The full board is expected to vote on the budget and associated tuition schedules during its Friday afternoon meeting (July 17) at Pennsylvania College of Technology. Tuition for Penn College is set separately, and 2026-27 rates were approved by the Penn College Board of Directors in June.
In addition to maintaining flat in-state undergraduate tuition at the Commonwealth Campuses, the proposal would see tuition for Pennsylvania resident undergraduates at University Park rise by a modest 2.5%, below the current U.S. inflation rate. Out-of-state undergraduate tuition would increase by 1% at the Commonwealth Campuses and 4% at University Park.
The proposed 2027-28 budget also includes a 3% pool for merit-based salary increases for employees — with individual employee percent increases to be determined by the University’s performance review process — and a 4% increase in graduate assistant stipends.
Penn State President Neeli Bendapudi said the proposal reflects the University’s commitment to containing costs for students and families while continuing to make strategic investments that support student success and the faculty and staff who make that success possible.
“With this budget, Penn State is continuing to invest in excellence — in the people and initiatives that change students' lives, strengthen communities, and drive Pennsylvania’s future,” Bendapudi said. “At a time of significant change across higher education, particularly for public universities like Penn State that rely heavily on tuition revenue to fulfill their mission, every budget requires thoughtful prioritization. This proposal reflects our commitment to making strategic investments while limiting tuition increases for students and families. By staying focused on our mission and making disciplined, forward-looking decisions, we are strengthening our academic programs and research enterprise, enhancing the student experience, supporting our world-class faculty and staff, and expanding our impact across the commonwealth.”
Despite rising expenses, Bendapudi said managing students’ total cost of attendance remains a top University priority. In addition to holding tuition rates as low as possible, the University has proposed on-campus housing and dining rates for the 2027-28 academic year that would mark the lowest percentage increase at University Park in the last nine years.
Previously, the board approved the operating budget and tuition schedules for 2026-27 last July as part of the University’s two-year budget cycle. The proposed 2027-28 budget would take effect July 1, 2027, and run through June 30, 2028.
Balanced E&G budget
The committee recommended a University-wide budget of approximately $11.1 billion, including a balanced $2.9 billion E&G budget for the third year in a row. The E&G budget supports the University’s core teaching, research and public service operations.
In addition to E&G funding, the overall University-wide budget also includes Penn State Health, Intercollegiate Athletics, Auxiliary and Business Services (including Housing and Food Services), Agricultural Research and Extension, the Applied Research Laboratory, Development and Alumni Relations, Pennsylvania College of Technology, and capital projects.
To balance the E&G budget, Penn State reduced college, campus and administrative unit allocations by a combined $24.6 million, or 1.1%. E&G budget allocations for fiscal year 2027-28 were shared with college, campus and administrative unit leaders earlier this year.
“This budget reflects the disciplined approach we have taken over the past several years to strengthen the University's financial position,” Thorndike said. “We are continuing to invest in our people, our academic mission, and areas where student demand is growing, while making strategic adjustments that allow us to maintain a balanced budget. Our data-informed budget model gives us the flexibility to respond to changing conditions without losing sight of our long-term priorities.”
Included in the E&G budget is approximately $78 million in new spending for employee salary and benefit increases and graduate assistant stipends, including:
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$49 million for the 3% merit-based salary increase pool and the 4% graduate assistant stipend increase.
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$23 million for higher employee benefit costs, driven primarily by healthcare cost increases.
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$6 million for faculty promotions.
Thorndike said the proposed tuition increases would generate approximately $59 million in additional revenue to help offset these costs.
2027-28 tuition schedules
The proposed tuition schedules for the 2027-28 academic year include the following rate changes:
Commonwealth Campuses
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No increase for in-state undergraduates.
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1% for out-of-state undergraduates.
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1% for in-state graduate students.
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2% for out-of-state graduate students.
University Park
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2.5% for in-state undergraduate students.
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2% for in-state graduate students.
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4% for out-of-state undergraduate and graduate students.
World Campus
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2% for all Penn State World Campus students (undergraduate and graduate, regardless of residency).
Penn State Dickinson Law
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2% for all law students (in-state and out-of-state).
College of Medicine
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2% for in-state medical students.
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4% for out-of-state medical students.
If approved, full-time, lower-division, Pennsylvania resident undergraduates at University Park would pay $261 more per semester, bringing tuition to $10,700 per semester.
Pennsylvania resident undergraduates at the Commonwealth Campuses would continue paying between $6,912 and $7,694 per semester, depending on the campus, representing no increase over last year’s rates.
For nonresident undergraduates at University Park, tuition would increase by 4%, or $891 per semester, bringing the per-semester rate to $23,178.
At the Commonwealth Campuses, the 1% increase for out-of-state undergraduates would add between $120 and $135 per semester, with the per-semester tuition rate ranging from $12,132 to $13,587, depending on the campus.
World Campus tuition would increase 2% for all students, adding $157 per semester for a total semester rate of $7,990.
Proposed 2027-28 undergraduate tuition schedules for each campus can be found in this chart. Click here to view this information in an alternate format.
Student fees
The Student Initiated Fee at University Park, which is determined each year by students, would increase by $10 per semester (3.1%) to $330 for students enrolled in nine or more credits.
At most Commonwealth Campuses, the fee would increase by $9 per semester (2.9%) to $324 for students taking nine or more credits. Great Valley's $80 per semester facilities fee would remain unchanged.
Two student-run fee boards — one for University Park and one for the Commonwealth Campuses — set and oversee the allocation of the Student Initiated Fee, which supports student activities, programs and facilities at every campus.
Final tuition and fee schedules will be posted online at tuition.psu.edu following board approval.