Notices

Public Notice - University of Memphis -
Simplification of Student Fee Structure
Board of Trustees Meeting: June 5, 2019

In our continued effort toward access and affordability initiatives, we are proposing a simplified student fee structure to begin in fall 2019.  The current fee structure (Program Service Fee & Online Fees) is disproportionate across certain student populations and leads to an overly complex student billing statement.

The proposed University Service Fee will be a three-year phased approach and will establish a proportional distribution of fees across credit hours. This will reduce and then eliminate the online course fee and ensure a clear structure that is easily understood by students and their families.

To promote transparency in this process and provide an opportunity for comments, we are communicating the details of the proposals in advance of the June 5 Board of Trustees meeting and providing an opportunity for the campus community to provide feedback.

Current Fee Structure:

Our current structure is comprised of various types of fees, primarily the Program Service Fee (PSF) and Online Course Fee.

Program Service Fee - The current Program Service Fee (PSF) is charged at a per credit hour rate up to 6 hours and then capped at 6 hours.

• Part time enrollment is more expensive
• There is a drop in revenue when part time enrollment decreases
• Leads to overly complex student billing/lack of understanding of charges
• Program service fee is only charged to on-ground hours

Online Course Fee - An Online Course Fee is charged per credit hour with no cap.

• Cost-prohibitive for some students ($300 extra per 3-hour course)
• Blended students pay both PSF and Online Course Fees, cost prohibitive

Simplification of Fee Structure

We propose a simplification in the fee structure by consolidating several fee types into three (3) main categories:

Shift in Online and On-Ground Credit Hours

Over the past several years, we've seen a gradual growth in the number of students who are enrolled in online courses and a decline in enrollment of on-ground courses.  Five years ago, 26% of all students took an online course.  Now, 37% of all students take an online course, and that number is projected to grow to 40% in fall 2019.  The current online course fee can be a deterrent for students who elect to take courses through various modalities.

Through this proposed three-year phased approach, students will experience a reduction in their online course fee by 50% in year 1 and completely eliminate the online course fee by year 3.

Impact of Fee Restructuring

The tables below demonstrate the changes in the fee structures that will occur over the next three (3) years in comparison to the current year (FY19).  By year 3, FY22, there will be no difference in cost for a student who enrolls in an online course or an on-ground course.