The University of Michigan, an encyclopedic survey ... Wilfred B. Shaw, editor.
University of Michigan.

Student Fees

Student fee revenues in 1940 amounted to 23 percent of educational and general revenue, excluding auxiliary activities. In 1977, revenue from this source was 22 percent, a stable relationship over the years. In dollar terms it had grown from $1,812,000 to $63,001,000.

During World War II the federal government paid to the University approximately $4,000,000 for contract instruction to servicemen from 1943 through 1946.

Following World War II, fee revenue paid by students was supplemented by the "G.I. Bill" through payments for veterans by the Veterans Administration of reimbursements for contractually-defined "costs of instruction." This supplemental revenue peaked in 1948-49 and gradually phased out in Page  21the 1950s. After the Korean conflict, this assistance program for veterans was modified by payment of the supplemental allowance directly to veterans, instead of paying the institution.

The term fees charged to students in Ann Arbor since 1940 have characteristically been single comprehensive fees covering instruction and various related student services. parts of these comprehensive fees were allocated to operate the Michigan Union and Michigan League, to supplement intercollegiate athletics revenue, and to support student organizations. Some allocations were also made to finance construction of the Michigan Union addition, North Campus Commons, Administration facilities, Chrisler Arena, and the Central and North Campus Recreation Buildings. Somewhat similar allocations have been made for Dearborn and Flint campus student fees. Beginning in 1976 a separate fee was assessed for health services.

Rates for term student fees (resident undergraduate) have increased from $60 in 1940 to $464 for lower-level students and $526 for upper-level students in 1976-77. Nonresident rates have increased from $100 in 1940 to $1508 for lower-level students and $1626 for upper-level students in 1976-77.

Fee rates in effect in the fall of 1940 continued without change until the fall of 1945 when they were increased. From then until 1970 the rates increased every second or third year. Since 1970 fee rates for most student levels have increased every year. General fund budget needs have increasingly required more student-fee revenue to balance relatively diminishing revenue from other sources. Each time rates are increased, consideration is given to several factors: the dollar amount needed to balance the budget, comparative rates at peer institutions, and the costs of instruction.

In the fall of 1961 the deferred tuition and fee payment plan was instituted, whereby fees could be paid in installments throughout the term. Prior to this, fees were payable in full on registration day.

Differential nonresident rates have traditionally been Page  22assessed for those students who do not qualify as Michigan residents in accordance with Regental residency rules. These rules were modified in 1953 to less stringent definitions as a result of court decisions. The ratio of undergraduate nonresident-term rates to resident rates in 1940 was 1.67 to 1. This ratio gradually widened. In 1948 it was 2.5 to 1, in 1966 it was 2.87 to 1, and since 1972 it has stabilized at 3.25 to 1.

In the fall of 1976, a new fee-rate structure for undergraduates was instituted, whereby assessments were made for each credit hour enrolled, instead of a flat-rate comprehensive fee.

An indication of the change in rates since 1940 is shown in the following table of undergraduate academic year rates.

Student Fee Rates - Academic Year
Year of Change Undergraduate
Resident Nonresident
1940 $120 $ 200
1945 130 220
1946 140 300
1948 140 350
1950 150 400
1952 180 430
1955 200 470
1957 250 600
1960 280 750
1962 280 900
1965 348 1,000
1967 420 1,300
1968 480 1,540
1970 568 1,800
1971 660 2,140
1972 696 2,260
1973 800* 2,600*
1975 848* 2,756*
1976 928* 3,016*