Penn State’s Board of Trustees announced modifications to the university’s 2026-27 operating budget on Wednesday, amending the proposal released in July 2025.

In an unprecedented decision, tuition for both in-state and out-of-state students will decrease at University Park and across Penn State’s commonwealth campuses.

Folks who reside in Pennsylvania will see a price cut of $388 per semester, equivalent to the combined total of a Penn State football and men’s hockey student season ticket pass. Out-of-state residents will see a tuition reduction of $438, a figure that also includes men’s basketball.

The reason for the reversal comes after the severe underperformance of three of the university’s highest-grossing athletic teams this past season. In a statement released by the administration, Penn State revealed that Vice President for Intercollegiate Athletics Pat Kraft was behind the efforts to push for the decrease.

“My kids — I call the players my kids — did not live up to the Nittany Lion golden standard,” Kraft said in the statement. “I want to apologize to our students who pour so much into supporting these teams. The least I could push for was some financial compensation.”

Despite skepticism surrounding his motives, Kraft claims that his push for the change has nothing to do with boosting his approval rating following a tumultuous football coaching search, but rather the kindness in his heart.

President Neeli Bendapudi also had a say on the situation. After receiving a $450,000 pay raise in the prior fiscal year, the university president — and known rap fan — seems to have adopted a hands-off attitude when it comes to making monetary decisions.

“I don’t care where I go, long as I get paid,” she said.

The budget will go into effect on July 1, 2026. Folks who receive scholarship money, or have any questions about their academic standing, can visit the Office of the Bursar at 103 Curtin Road.