HB2540 Summary: University Student Fee Act

• Establishes the University Student Fee Act creating a comprehensive tuition and fee framework for Illinois State universities, effective July 1, 2016.

• Sets resident undergraduate tuition at $103.32 per credit hour beginning July 1, 2016, with annual increases tied to inflation (Consumer Price Index) starting in fiscal year 2018.

• Caps combined activity, service, health, and athletic fees at 40% of tuition with annual increases limited to 5% or the tuition increase rate, whichever is greater; allows athletic fee increases up to $2 per credit hour for NCAA division changes.

• Authorizes universities to establish tuition differentials for undergraduate courses with Board approval, requiring 70% of revenues for undergraduate education improvements and 30% for need-based financial aid; caps total tuition and differential increases at 15% annually.

• Allows Board approval of flexible tuition policies (block tuition, market rates for graduate online courses) and new student fees not to exceed 10% of tuition, with detailed oversight requirements and annual reporting to legislative leadership.