NASHVILLE, Tenn. (WZTV) — Tennessee State University students will see a 6% increase in tuition and mandatory fees starting in the 2025-2026 academic year, following a vote by the university’s Board of Trustees. The increase, approved last week, is part of a broader plan to address TSU’s ongoing financial challenges, including a projected $39 million budget shortfall for the upcoming year.
The new tuition rates will impact both in-state and out-of-state students. For a typical undergraduate taking 15 credit hours, the increase amounts to roughly $270 more per semester. University officials say the decision reflects rising operational costs and the need to stabilize TSU’s finances while maintaining student services and academic programs.
The 6% hike is below the 6.5% cap allowed by the Tennessee Higher Education Commission (THEC). During the same series of meetings, the board also approved TSU’s 2025-2026 operating budget, which includes the $39 million deficit. Interim President Dwayne Tucker emphasized that the shortfall was not unexpected, it fits within a five-year financial recovery plan he presented to state leaders earlier this year. That plan includes cost-cutting measures such as a hiring freeze, reduced operational spending, and, if necessary, staff reductions.
TSU’s Acting CFO Jim Grady said the university has already cut approximately $25 million in expenses as part of those efforts. The financial turnaround plan comes as TSU continues addressing concerns from a recent state audit by the Tennessee Comptroller’s Office. The audit, which reviewed finances from the 2022-2023 school year, before Tucker and the current board were in charge, highlighted repeated issues with internal financial controls and management oversight. Tucker told the board he’s committed to resolving those findings and preventing future mismanagement.
Despite the challenges, university leaders say TSU remains the most affordable public university in Tennessee. The tuition increase and approved budget are set to take effect in Fall 2025.
