Penn State just unveiled its budget for the 2026-27 academic year, and it comes with tuition hikes for many students. The $10.2 billion budget, approved by the Board of Trustees, outlines a 2% increase for in-state undergraduates at University Park. Out-of-state students will see a 4% jump, while out-of-state students at branch campuses face a 1% rise.
For in-state undergraduates at University Park, tuition will rise by $205 per semester, totaling $10,439. For out-of-state undergraduates, tuition increases by $857, resulting in $22,287 per semester, or $44,574 for the whole year.
Branch campuses won’t see an increase for in-state undergraduates, but out-of-state undergraduates and in-state graduate students will see a 1% hike. Out-of-state graduate students at those campuses will face a 2% increase.
About 18,000 in-state undergraduates attend these commonwealth campuses, making up roughly 42% of Penn State’s in-state student population, according to Sara Thorndike, the senior vice president for finance and business. Some branch campuses, like New Kensington and Fayette, will close after the spring 2027 semester.
President Neeli Bendapudi emphasized the university’s commitment to its students and staff amid rising costs and challenges in higher education. “We are navigating a complex landscape—from shifting demographics to uncertainties around international students,” she noted. She added that flat state funding levels since 2019 are putting pressure on university finances.
In light of these challenges, the university remains in a stable financial position, with a flexible budget model to adapt to changing conditions both in Pennsylvania and beyond.
Housing and food costs will also rise, effective fall 2026. The budget proposes a 2.85% increase, or $198 per semester, for the standard double room and mid-level meal plan at University Park, bringing total costs to around $14,275 annually.
Branch campus rates vary, but campuses like Abington and Altoona will see an increase of about 1.64% per semester, adding $110 to reach a total cost of $6,815. Other campuses will experience smaller increases of around .62%.
The budget also plans for a 3% merit-based salary increase pool and a 4% rise in graduate assistant stipends for the year.
This budget reflects broader trends in higher education, where rising costs and uncertainties are reshaping the landscape. Experts in the field note that as universities face competition for enrollees and funding challenges, it becomes crucial to make strategic investments in both infrastructure and student services to remain competitive.
Understanding how these tuition increases compare to national trends is essential. According to the College Board, tuition and fees at public four-year institutions rose by about 1.1% on average for the 2021-22 academic year. The increases at Penn State, while significant, are part of a larger conversation about the sustainability of higher education funding in the U.S.
As students and families prepare for these changes, they are actively discussing the implications on social media, often sharing concerns about affordability and the long-term value of a college degree. Navigating these financial waters will require careful planning, but universities like Penn State are striving to support their students through the process.