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DSU raises tuition 21% as it preps for future

May 18, 2023 |By Jacob Owens

Delaware State University is the only Historically Black College or University. | DBT PHOTO BY JACOB OWENS

After more than a decade of barely moving its tuition, Delaware State University is increasing it 21%, or $1,500, next year. | DBT PHOTO BY JACOB OWENS DOVER – Over the past few years, enrollment has grown dramatically at Delaware State University, the state’s only historically Black university, and so too

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After more than a decade of barely moving its tuition, Delaware State University is increasing it 21%, or $1,500, next year. | DBT PHOTO BY JACOB OWENS[/caption] DOVER – Over the past few years, enrollment has grown dramatically at Delaware State University, the state’s only historically Black university, and so too has the programs and services for students. But one thing hasn’t changed in six years: tuition. That will change starting next year when DSU’s comparatively low annual in-state undergraduate tuition of $7,038 will increase about 21%, or $750 for each semester. The new $8,538 annual tuition cost – and $10,953 total with required added fees – would still be considerably lower than all three other in-state colleges: University of Delaware, Wilmington University and Goldey-Beacom University. The news comes a day after the UD also approved a 5% increase to its tuition, its largest increase in a decade. DSU’s rate would also be significantly lower than out-of-state tuition to nearby HBCUs like Morgan State University, University of Maryland Eastern Shore, Cheyney University of Pennsylvania, and Lincoln University. “We have been, are, and will continue to be the best return on investment in higher education for students and their families,” DSU President Tony Allen said in a statement announcing the hike. “After six years of constant growth, it is time to ensure the long-term financial sustainability necessary to continue to deliver on our promise of a high-quality, high-value college education.” The enrollment at DSU has grown 34% over the past five years, reaching a fall 2022 enrollment of 6,262 – the first time it broke the threshold of 6,000. It also had its largest freshman class to date, with 1,452 first-year students last year. With that class growth, however, the comparatively low tuition is imbalanced with the rising cost of services for them, especially when factoring in the current inflationary environment, said Anas Ben Addi, the chief financial officer for the university. “DSU is getting to a point where that marginal net benefit is diminishing a little bit with the growth and the cost with inflation,” he told Delaware Business Times. The university brought in about $3 million in tuition and fees in the 2021-22 school year, according to its most recent audit report. Ben Addi said DSU expects to see tuition revenues in a range of $3 million to $5 million starting next year, depending on how families react to the hike. DSU will also look to continue growing online, international and graduate students who carry a smaller cost burden than undergraduates and could help grow the bottom line in future years, Ben Addi said. “We don't have a chronic deficit that we are trying to solve,” he said, noting that the university has finished the last three years with net positive positions, and expects to do so again this year. “But we are feeling the pressure and we are trying to resolve that pressure. We are also trying to get to a position where we can build the reserves that are needed for future growth. It's no secret when you look at our endowment that it is not where it should be. We're not University of Delaware.” Notably, DSU has grown its physical presence considerably in recent years, including acquiring the former Wesley College in downtown Dover, opening a Riverfront campus in Wilmington, and adding a diagnostic lab on Kirkwood Highway. It’s also rolled out additions to its aviation program and plans for an expansion of its agricultural science program. Nearly all of that work has been supported by COVID-era federal funds, state funding or partnerships with private companies, but additional faculty and facilities do carry long-term additional costs. “This is not a response to a post-COVID crisis, this is really readjusting or rebalancing our revenues and expenses,” Ben Addi said, noting that the tuition increases would have likely happened sooner without COVID-era funding support. “This decision is really a decision to accommodate past decisions, to really address present needs and opportunities, and also to be prepared for future sustainability and growth.” DSU officials are quick to note that a large percentage of its students won’t notice the increase, as about 67% of students are on state-funded Inspire scholarships. Similar to the SEED scholarship for Del Tech, that program allows Delaware high school graduates with a minimum 2.75 GPA to attend DSU for free as long as they maintain good grades and good conduct. Likewise, students with Presidential Scholarships or fully-funded athletic scholarships will still be fully covered, officials said. Ben Addi noted that other students are also supported by federal Pell grants, so the number of families who will pay the additional $1,500 out of pocket is much smaller. The university will also support families who earn $30,000 or less a year by prioritizing DSU Foundation scholarship support to them to cover the hike and actually reduce tuition by $1,000, he added. When asked whether DSU would be considering more frequent tuition increases in the future as is the norm at many universities, Ben Addi said that tuition will be evaluated on an annual basis moving forward to avoid future large increases.