Indexing tuition to cost of education: The impact on students and institutions

This study examines an emerging trend in state higher education finance policy: the use of an index to establish tuition and fee levels at public institutions. Based on a national survey of tuition-setting policies, this study documents the increasing use of an indexing formula to determine tuition levels. Factors encouraging this trend are examined, and questions that must be addressed by state and institutional policymakers in adopting such a formula are discussed. Policy implications for states and institutions are also considered.