The Board of Visitors approved a plan Friday to charge University students an additional $3,000 to enroll in the Commerce School.
Rector John Wynne met with Virginia Gov. Bob McDonnell several months ago and discussed the idea of differentiating costs.
"He and I both felt the concept of matching up costs, i.e. tuition, with the value of the degree and cost of the program made a lot of sense," Wynne said.
In the past, every student has had to incur the cost of subsidizing higher cost programs instead of paying a differential.
"We have come to find out Virginia Tech has been doing this for years," Wynne said. "We didn't know it. The concept has been there, so we have been doing a study."
Administrators acknowledged the plan might not be applauded by those paying tuition.
"No one likes to raise prices," University President Teresa A. Sullivan said, adding that "the level of resources is simply not adequate. There is not enough faculty and they are not being paid enough."
In terms of specific program needs, there is high demand for technology and the quality of career services that are offered. The Commerce School needs more money to stay competitive with other undergraduate business programs, Sullivan said.
"If you're going to have a job and spread it over a period of time, it is not going to be significant," Wynne said about the cost increase.
The average starting salary of a Commerce School graduate is about $60,000 per year compared to the College student's $50,500. Wynne deflected concerns that new Commerce School students would face insurmountable debt.
"Even if we had a middle-class kid who didn't require, didn't qualify for financial aid, the most he could come out with this increase is $6,000," Wynne said.
Sullivan ensured the Board that the Commerce School has arranged to set aside sufficient money so that any student who is currently offered financial aid, or who will qualify after the increase in charges, will receive additional coverage.
"We will set that aside and monitor this carefully," she said. "I think my most important job with respect to the academic programs is maintaining quality of the programs."
Board member Robert Hardie reminded members before closing discussion that this extra charge applied to Commerce students is a case study of sorts. Fellow board member Glynn Key, however, expressed confidence in the newly approved plan.
"It's not going to be repealed, practically," Key said. "I think we can admit that to ourselves"
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