Financial basis

AU endowment tops $1 billion for first time as tuition revenue plummets

In mid-February, the University released its annual financial reportrevealing that its endowment jumped nearly a third in the fiscal year ending September 30, 2021, to an all-time high of $1.09 billion.

The 81-page report attributes the unprecedented endowment growth to “an increase in market value and endowment additions of $34.3 million.”

The University’s endowment declined in the 2019-20 fiscal year, which included the onset of the COVID-19 pandemic, “due to a decrease in market value as well as an appraisal value University’s lower mineral rights,” the report said.

Over the past decade, the University’s endowment has increased by more than three quarters.

Before subtracting scholarship allocations, the University collected $754 million in revenue from tuition and fees in the 2020-21 fiscal year. This is down from $801 million in fiscal year 2019-20.

“The University is still reviewing costs and revenues,” UA spokesperson Shane Dorrill said in an email. “However, we are optimistic about the future due to the record freshman class and an expected increase in applications for fall 2022.”

The University has set a record 7,593 freshmen last fall after a drop in enrollment in the fall of 2020.

In-state undergraduate tuition has remained unchanged at $10,780 since the 2017-18 academic year. Tuition for out-of-state undergraduates, which now make up approximately 59% of the University’s undergraduates, is $30,250 as of the 2019-2020 academic year, when they went from $29,230.

Over the past 10 years, tuition at the University has outpaced inflation, rising 25% for in-state undergraduates and 38% for out-of-state students. Meanwhile, law school tuition has increased by 31% and 39% for in-state and out-of-state students, respectively.

Still, undergraduate tuition at the University remains on par with other public SEC universities, which charge an average of about $11,400 in state undergraduate tuition and fees. and $30,800 for out-of-state students. The University of Alabama financial aid website puts the fee at $800 per year.

Among public SEC colleges, in-state tuition and fees range from $6,380 at the University of Florida to $14,263 at the University of South Carolina. Out-of-state tuition and fees range from $24,900 in Mississippi State to $40,896 at Texas A&M. Vanderbilt, the only private college in the conference, charges about $57,000 in tuition and fees for in-state and out-of-state undergraduate students.

Dorrill said the University of Alabama system will make a tuition decision for the next academic year in June.

For the 2020-2021 fiscal year, scholarship expenditures totaled $347 million, compared to $319 million in the previous fiscal year. Scholarship expenses for the 2020-21 fiscal year are 46% of gross tuition and fee revenue, about average compared to other public SEC universities.

According to the University Common data set responses, approximately 38% of scholarships and grants are awarded on the basis of financial need; the remaining 62% includes scholarships awarded for academic success.

Questions? Email the news desk at [email protected].