Penn State moves to hike tuition for University Park students, announces purchase of former frat house where Tim Piazza was fatally injured

In-state undergraduate students at Pennsylvania State University would see their tuition increase by 2% in 2026-27 under a plan approved Thursday by the board of trustees’ finance committee.

The full board will vote on the plan Friday.

Meanwhile, in-state students on the Commonwealth campuses would not see a tuition increase for the fourth consecutive year. The Commonwealth campuses have been struggling with enrollment declines, and the board in May approved a plan to close seven of Penn State’s 20 Commonwealth campuses at the end of the 2026-27 year.

» READ MORE: PSU board approves closure of seven Commonwealth campuses by a 25-8 vote

Penn State sets tuition and fees a year ahead, so it approved rates for the 2025-26 year last summer. The percentage increase for 2025-26 was the same for University Park students — 2% — and Commonwealth campus students again will see no increase.

Out-of-state students on the Commonwealth campuses will pay a 1% increase this year, while those at University Park will pay 4%. The board on Thursday approved the same percentage increases for 2026-27.

Under the new rates, in-state undergraduate freshmen and sophomores at University Park would pay $20,878 in annual tuition in 2026-27, up from $20,468 in 2025-26. Nonresident undergraduates, meanwhile, would pay $44,574, up from $42,860.

Penn State president Neeli Bendapudi said that in the more than three years that she has led the university, the school has taken actions to curb expenses, including the campus closures. The university faces inflationary increases, she said, and it also is awarding graduate assistants a 4% increase in 2026-27 and creating a 3% merit-based pool for employees.

“It is also an unprecedented time in higher education in many ways because of the uncertainty of our funding challenges at the federal level and the state level,” she said. “So at this point I can confess that I’m not comfortable that we would be able to achieve a balanced budget without a very, very modest increase in in-state tuition for University Park students.

“I want you to know,” she continued, “that this was not a decision that any of us, me or my team, arrived at easily because we know affordable education is critical. … But we feel that this will position us to invest in the future and strengthen our foundation.”

Penn State is not alone in raising tuition. The Pennsylvania State System of Higher Education enacted a tuition increase for 2025-26 for the first time in seven years Thursday. Students will pay 3.6% more, but that would be rolled back if the system receives the state funding increase it requested. Temple University earlier this month approved a 3.6% tuition increase for in-state and out-of-state students.

Penn State’s decision comes as the state legislature has yet to approve funding for colleges and universities. Under the House version that passed Monday, Penn State and the other three state-related universities would see their funding held flat again.

Penn State’s board committee passed the tuition measure with only one board member, Anthony Lubrano, voting no.

The university finished 2024-25 in a better financial position than expected, erasing a projected deficit and posting a $44 million surplus, which will be used to cover deferred maintenance, the university said.

» READ MORE: Tim Piazza died after a fraternity hazing party. Now, his parents are back in court as part of a seven-year battle for justice and reform.

Also at the meeting, the committee endorsed a plan for the university to purchase the Beta Theta Pi fraternity house for $7.3 million. Penn State student Tim Piazza suffered fatal injuries at the house in 2017 during a booze-fueled hazing ritual that resulted in criminal charges and sweeping campus reforms.

Penn State sold the property to the Alpha Upsilon fraternity in 1928 under an agreement that included a deed restriction requiring the property be sold back to Penn State if it was no longer a fraternity.

The university permanently revoked Beta Theta Pi’s charter after Piazza’s death. The university sued to get the property back, and settlement discussions among Alpha Upsilon, PSU alumnus Don Abbey, and Penn State led to the sales agreement, the university said.

The property will be used for “swing space” initially, and the university will figure out its long-term use during the master planning process, said Sara F. Thorndike, senior vice president for finance.

Staff writer Gillian McGoldrick contributed to this article.