Elon University’s Board of Trustees approved a 3.9 percent tuition increase for the upcoming academic year, as well as increases in room, board, Student Government Association and health fees. Next year, tuition will cost $29,750, and Elon’s total cost of attendance will equal approximately $40,000.

Elon’s cost of attendance has risen steadily since 1989 to support the growth of the institution. The latest budget plan will generate revenue to advance the Elon Commitment, a strategic plan to promote academic excellence and expand residential areas on campus.  The increases will fund 13 new full-time faculty positions and 21 new staff positions, as well as promotions and salary upgrades for current faculty and staff members.

“As we grow as an institution, we need to keep our small class size and maintain that personal attention,” Whittington said when the increases were proposed. “We’re building a world class faculty and staff, and something like a pay increase is always a driver.”

Although the increases are relatively modest, some students may feel a financial squeeze next year. Junior Dylan Cooper acknowledged the state of the economy has forced many families to tighten their belts.

“The increases will probably affect some students adversely,” he said. “But it won’t be that bad for me, because I’ll be a senior.”

The increases may also offset the impact of a potential tax code reform in North Carolina. During the 2013 legislative session, the North Carolina General Assembly will debate how to revive the state’s floundering economy by building a more business-friendly tax structure.

The State Business Tax Climate Index recently listed North Carolina as one of the worst business tax climates in the country, and Republican lawmakers are considering eliminating the state’s corporate income tax to coax businesses into the state. They may abolish personal income taxes, too, in exchange for higher sales taxes on all transactions.

If the state eliminates personal and corporate income taxes, it will likely repeal the sales and property tax exemptions currently afforded to many non-profit institutions, including Elon. Such a repeal would cost the university $3.5 million annually.

“The single largest thing driving the increases are the proposals in the North Carolina legislature to remove tax breaks in the state,” Whittington said.

It will likely affect other institutions, as well. Denny Bolton, vice president of business affairs at High Point University, said High Point’s board of trustees will discuss similar tuition increases next month.

“College and universities are all facing the same economic pressures,” he said. “We are considering tuition increases for the same reasons.”

Wake Forest University recently approved a 3.5 percent tuition increase for the 2013-2014 academic year, raising the cost from $42,700 to $44,200. The university’s total cost of attendance will equal $60,242, though the university did not specify its reasoning.

Elon’s cost of attendance will break $40,000 mark next year, but its price tag remains relatively low. Bryan Younghans, who transferred to Elon after one semester at the University of Masschusetts at Amhurst, said it’s all about perspective.

“The increases will make my student loans higher,” he said. “But after the increases, Elon is still less than U-Mass and most other schools.”