The Decade-Long Freeze: A History of UNC Undergraduate Tuition and the Challenges Ahead
North Carolina has long prided itself on its commitment to affordable education, a principle enshrined in the state's constitution. For nine years, the University of North Carolina (UNC) System Board of Governors upheld this commitment by freezing tuition for in-state undergraduate students. This article delves into the history of this tuition freeze, its effects, and the factors that led to its potential end, examining the perspectives of students, administrators, and policy experts.
The Genesis of the Freeze: A Commitment to Affordability
Since 2016, the University of North Carolina Board of Governors has voted to keep tuition rates flat for resident undergraduates at all universities. The UNC System, comprised of sixteen institutions, has consistently emphasized accessibility for North Carolinians from all backgrounds. "A UNC System degree is not only affordable, but also a good investment," stated UNC System President Peter Hans. "Our universities exist to serve North Carolinians from every community, every experience and every corner of our state." The average in-state tuition at 12 of the 16 universities in the UNC System is $4,553 per year.
This decision stemmed from a deeply held belief that higher education should not be a luxury, but a right accessible to all residents. As chair of the University of North Carolina Board of Governors, one leader held this charge close to their heart, stating, "In North Carolina, we have a constitutional mandate to provide affordable education to our people." Recognizing the financial burden on families, the Board scrutinized the total cost of attendance, working to keep mandatory student fees in check. Universities were strongly encouraged to balance any fee increases with efforts to reduce fees in other categories.
The Benefits of a Tuition Freeze: Lower Debt and Increased Access
The tuition freeze yielded positive results for North Carolina students. During the freeze, student debt levels decreased significantly. In 2018, 62% of graduates held debt from student loans, but by 2025, this percentage had dropped to 48%. The amount of money students borrowed for college also decreased by 35% between 2018 and 2025. These improvements were attributed to the accessibility and affordability efforts made over the past decade.
Tom Harnisch, a vice president at the State Higher Education Executive Officers Association, noted that North Carolina had one of the longest-running tuition freezes in the nation. He emphasized the benefits to students, highlighting the drop in the percentage of UNC System students with loan debt.
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The Challenges of Maintaining the Freeze: Inflation and Operational Costs
Despite the positive outcomes, maintaining the tuition freeze proved increasingly challenging. Inflation pressures and the rising cost of everyday operations affected the institutions. The board and the UNC System recognized that a tuition bump of any amount will affect our students and are committed to using good judgment and institutional accountability to limit those effects.
High inflation effectively turned the UNC's tuition freeze into a de facto tuition decrease. Since the 1999-2000 academic year, tuition has increased roughly 330 percent at most UNC schools, including NC State, UNC-Chapel Hill, East Carolina, UNC Charlotte, UNC Greensboro, Appalachian State, NC A&T, NC Central, UNC Wilmington, UNC Asheville, Winston-Salem State, and the North Carolina School of the Arts.
As one member of the BOG, Joel Ford, pointed out, the institutions were essentially tightening their belts and finding efficiencies to stay in line with their flat revenue stream. Concerns arose about the long-term sustainability of maintaining the same quality of education with fewer funds.
The Potential End of the Freeze: A Necessary Adjustment?
In the face of these challenges, the Board of Governors considered a tuition increase for the first time in ten years. Last fall, when preparing for this change, institutions were informed that any proposal to raise resident undergraduate tuition shouldn’t tick above 3%, which averages $125 per student. Public higher education, in addition to being affordable, must continue to advance valuable skills in North Carolina, a state with a fast-growing job market. That kind of educational excellence requires investments in outstanding faculty, technologies, and resources that help students prepare for the workforce.
While acknowledging the impact on students, the Board emphasized the need to provide for institutional operations, preserve the quality of instruction, and ensure student success. Even with a 3% increase, resident tuition across the UNC System would remain among the lowest in the nation, and well below most peer institutions. Moreover, the increase would only apply to newly enrolled students, as returning students are covered by the state's guaranteed tuition program, which keeps tuition fixed over four years as long as students remain continuously enrolled for eight semesters.
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The Impact on Universities: Program Cuts and Resource Constraints
The extended tuition freeze has had tangible effects on UNC System universities. UNC Asheville and UNC Greensboro, for example, cut programs, majors, and departments due to a lack of tuition revenue. UNCA faced a budget shortfall of $6 million, while UNCG had lost $22 million in five years due to declining enrollment.
Sandy Baum, a higher education finance researcher at the Urban Institute, explained that universities might expand class sizes, cut back on support services, backlog maintenance, and increase faculty course loads to compensate for frozen tuition. These measures ultimately come at the cost of students.
Harnisch, the SHEEO executive, noted that regional universities tend to be particularly dependent on tuition and state funding. He stated that budget cuts hurt the regional colleges because the students that they're serving are lower income, and they don't have the wealthy alumni base, the alternative revenue streams, and other advantages that a public flagship university might have.
Alternative Solutions: Efficiency and Innovation
Despite the pressures to raise tuition, some argue that the UNC System can find alternative solutions to maintain affordability. Ending low-productivity programs by discontinuing or merging undergraduate academic programs that graduate fewer than 10 students per year. Reducing the headcount of non-faculty administrators as Martin Center data show that non-faculty staff headcount increased by 14.6 percent from 2015-16 to 2024-25 despite enrollment increasing by just 10.2 percent. Pinching pennies by counting even seemingly insignificant expenditures can make a difference. Increasing out-of-state tuition, including at NC Promise schools, to cover all educational and related expenses.
The Role of State Funding: A Crucial Partnership
State funding plays a vital role in supporting the UNC System. Since 2020, in-state tuition has not budged, while state funding for the UNC System has increased by 32%. The state also provides additional funding for NC Promise institutions, where students only pay $1,000 for tuition annually. The legislature subsidizes the difference between a university's regular tuition rate and its actual NC Promise rate.
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However, funding for the other 12 universities fluctuates from year to year, making it difficult for administrators to gauge how much money they'll have to work with. The UNC Board of Governors requires universities to meet performance metrics to receive full funding from the legislature.
The Future of Tuition: Balancing Affordability and Quality
North Carolina's tuition freeze is likely to stay in place for at least another year, as Hans has made it clear that he wants to continue keeping tuition flat for a full decade. However, experts warn that the flat tuition can't stay that way forever. The fairest thing would be to have small tuition increases every year, so that it's divided sort of equally among students who go to college this year and next year and so on.
The UNC System faces the challenge of balancing affordability with the need to maintain and improve the quality of education. This requires careful consideration of tuition policies, efficient resource management, and a strong partnership with the state legislature.
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