Indiana University of Pennsylvania is telling hundreds of graduate students they will be assessed a 5 percent "tuition differential" beyond whatever rate the State System of Higher Education imposes this fall as IUP wrestles with budgetary woes.

The school, the largest of Pennsylvania's 14 state-owned universities, apparently has become the first to utilize an amendment to the State System's tuition policy. The change in 2008 lets the 14 member schools adjust master's and doctoral rates upward to reflect delivery costs for the programs and specific market demand, State System spokesman Kenn Marshall said Monday.

The school said the 12 programs include four doctoral level degrees -- communications media & instructional technology; English/composition & TESOL (teaching English to speakers of other languages); clinical psychology and curriculum & instruction. Eight master's programs affected include the MBA/executive track; community counseling; criminology; English/TESOL; nursing; safety sciences; speech-language pathology and sport science.

The 12 last year collectively enrolled 765 of IUP's 14,600 students, IUP spokeswoman Michelle Fryling said.

The State System's board of governors is not expected to set the 2010-11 tuition for the 14 schools until July 15 at the earliest.

Even if the panel leaves tuition rates unchanged, the differential means full-time in-state students in the 12 IUP programs will see a $333 increase in the yearly graduate rate of $6,666, not counting mandatory fees; and full-time out-of-state students would see a $533 increase in yearly tuition, which now totals $10,666 for them, not counting mandatory fees, Ms. Fryling said.

The 14 State System universities face recession-driven losses of $40 million in their state appropriations over two years, plus the anticipated loss starting in July 2011 of $38 million in federal stimulus aid that helped the schools offset the state cutbacks. At least four campuses have begun, or are weighing, work force reductions.

Still, some students called the increase uncalled for and "ridiculous," noting that the State System just this month agreed to pay departing IUP President Tony Atwater's $253,428 salary through June 2011, plus $15,000 in moving expenses. On June 9, Dr. Atwater announced he was resigning effective June 30, a year before the end of his contract, to take an unpaid fellowship with a college association in Washington, D.C.

"It always falls back on the little people," said IUP student Ashley Brahosky, 23, of Greensburg, who is enrolled in the master's TESOL program. "I'm sure they could have figured out a better way than to raise tuition on people who are already in debt."

The decision follows several studies undertaken to determine if the higher rates were appropriate, Donna Griffith, an assistant dean for administration in IUP's School of Graduate Studies and Research, wrote students in an e-mail on Friday.

"As you are likely aware, the financial outlook for the university has been a topic of serious concern and debate over the recent two years," she wrote. "As a university, our options in moving forward to address the identified concerns are two: 1) to decrease expenses; and 2) to increase revenue."

"Please know this decision was not made lightly," she added. "We are keenly aware of the effects."

Mr. Marshall knew of no other schools in the system planning to implement the differential, but he said the option is open to them provided they can justify the move and Chancellor John Cavanaugh signs off on it.

Ms. Fryling said the IUP Council of Trustees voted for the differential at its March meeting, and Dr. Cavanaugh approved it this month.

"We are aggressively looking for ways to balance our budget and to serve our students," Ms. Fryling said.

She said IUP worked to ensure the program would not be priced out of the market, adding, "If you talk with a lot of professionals, they would say 'Oh my gosh, IUP programs have been underpriced for many years.' "

Looking for more from the Post-Gazette? Join PG+, our members-only web site. You'll get exclusive sports content, opinion, financial information, discounts from retailers and restaurants, and more. Our introduction to PG+ gives you all the details.