Rutgers Approves Tuition to Increase of 5% for in-state Students and 6% for Out-of-state Students

the staff of the Ridgewood blog

NEW BRUNSWICK, NJ — July 2025 — The Rutgers University Board of Governors has officially approved a $5.9 billion operating budget for the 2025–2026 academic year, reinforcing its mission to expand student access, affordability, and financial aid, even as inflation and federal funding uncertainty challenge higher education nationwide.

🎓 Tuition Increases with Expanded Aid

To support the budget, tuition will increase by 5% for in-state students and 6% for out-of-state students. A typical New Jersey resident enrolled in arts and sciences will see tuition rise from $14,222 to $14,933, an increase of $711. Out-of-state tuition will rise from $33,734 to $35,758.

Despite these increases, Rutgers has bolstered financial aid programs to ensure affordability:

• Scarlet Guarantee (New Brunswick)

• RU-N to the TOP (Newark)

• Bridging the Gap (Camden)

These initiatives cover 100% of tuition and mandatory fees for students with a family Adjusted Gross Income (AGI) of $65,000 or less.

For families with higher AGIs:

• $65,001–$80,000: Students pay no more than $3,000 annually.

• $80,001–$100,000: Students pay no more than $5,000 annually.

These efforts are complementary to New Jersey’s Garden State Guarantee (GSG), which will continue supporting third- and fourth-year students, with Rutgers funding new students not covered under GSG.

📚 Over 75% of Undergrads Receive Financial Aid

In the 2024–2025 academic year, more than 75% of undergraduates at Rutgers received some form of financial assistance. This new budget ensures continued support, especially for low- and middle-income families, even as state funding decreases as a share of total revenues.

“The Board remains committed to Rutgers’ role as a world-class, accessible institution,” said Board Chair Amy L. Towers. “This budget strikes a responsible balance between financial realities and our students’ needs.”

📊 Budget Breakdown: Where the Money Goes

The $5.9 billion FY 2026 budget, effective July 1, 2025, allocates resources as follows:

• 76% – Student instruction, support, financial aid, research, and patient care

• 16% – Administration, operations, and maintenance

• 5% – Auxiliary services (housing, dining, parking)

• 3% – Division I athletics

💵 How Rutgers Funds the Budget

Revenue sources include:

• Tuition and fees: 27.7%

• Patient care services: 20.4%

• State of New Jersey: 18%

• Sponsored research: 14.1%

• Miscellaneous (housing, athletics, endowment, etc.): 19.8%

While the New Jersey state budget restored nearly all of $65 million in proposed cuts, state contributions have declined slightly over recent years—from 20% to 18% of Rutgers’ total revenue.

“This balanced budget supports financial aid at scale, despite cost pressures,” said Rutgers President William F. Tate IV. “We must make tough choices to ensure our long-term ability to support students.”

📉 Cost-Cutting Measures

In addition to tuition increases, Rutgers is taking steps to contain costs:

• 4% budget cuts to central administrative offices

• Careful management of salary and fringe benefit increases

• Streamlined investments in technology, infrastructure, and student services

“This budget reflects fiscal discipline and our dedication to sustainability,” said J. Michael Gower, Rutgers’ CFO and EVP.

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