UCDC Policy on Assessing Course, Lab & Program Fees

Through the annual budget cycle, campus Academic and Service Units receive general fund allocations to cover routine educational expenses and support instructional activities on the Dearborn campus.  These general fund resources come from mandatory tuition, course premiums, and registration fees, as approved by the University of Michigan Regents, and paid by all enrolled students enrolled on the Dearborn campus.

Common instructional and administrative costs funded by these mandatory charges include, but are not limited to:

• Regular payroll costs for both instructional and non-instructional faculty and staff
• Instructional support services (such as Library and Advising)
• Facilities and information technology infrastructure and services
• Academic program support for on-campus instruction
• Department administrative or operating overhead (such as payroll, communication services, copier leases, utilities, etc.)
• Ordinary, incidental costs associated with offering instruction (including photocopies, office supplies, office or computer equipment, and research equipment not consumed within the semester)

Dearborn campus units may incur expenses above and beyond these ordinary costs. These extraordinary costs are typically related to providing additional instruction or special educational experiences not funded by mandatory tuition, course premiums, or registration fees.  This policy explains how these extraordinary costs may arise and outlines the procedures UM-Dearborn units should follow to address those costs, per the University’s SPG 601.39 Student Tuition and Fees.

Extraordinary costs generally fall into one of three categories:

1. Supplementing On-Campus Credit Instruction (“Course,” “Laboratory,” or “Class Fees”)
2. Program-level extraordinary expenses (“Program Fees”)
3. Special Off-Campus Educational Experiences (one-time, flat fee per participant)

After reviewing this policy and the SPG 601.39, Student Tuition and Fees, any Dearborn campus Academic or Service Unit with extraordinary costs falling in one of the above categories should consult first their Unit’s Budget Lead and Dean, Associate Dean, or Senior Officer to determine whether creating a new fee is necessary.

It is essential that all campus units follow the outlined processes to keep students and families fully informed about any fees assessed which fund extraordinary expenses and communicate the reasons that such fees are necessary to enhance the student’s instructional experience.

Below are descriptions of the three fee types and the steps each Dearborn campus Unit should follow to implement a new fee. All Units should carefully consider resources available in the Unit and the impact on student affordability prior to proposing a new fee.

Campus Units should have procedures and approval processes to document when Departments in their Unit may request a course, program or one-time fee. Units shall also conduct an annual review of all previously approved fees to ensure that approved remain aligned with actual costs and also account for inflation.

Campus Units shall also develop a communication plan to explain, prior to assessing fees, why  course/lab/program fees are essential and enhance the student’s instructional experience.

1) Course, Laboratory, or Class Fees Supporting On-Campus, Credit Instruction

Some academic disciplines may offer courses which generate extraordinary costs, either at the course or subject level, requiring the need for a Course Fee.

Examples of extraordinary costs that may be eligible for a Course Fee include:

• Materials, supplies, devices, or equipment fully consumed during the class
• Printed materials, licensing, or copyright fees (such as lab experiments and case studies)
• Goods retained by students (videos, reference materials, software)
• Maintenance and repair of equipment or devices used exclusively for classroom purposes
• Admission or event fees for outside-the-classroom activities
• Travel expenses related to off-campus events or experiences

Excluded costs that cannot be charged in a course, class or laboratory fee include:

• Regular instructional costs for on-campus learning, such as regular faculty compensation, or regular staff compensation
• Facilities or IT infrastructure
• Academic program support for on-campus instruction
• Department administrative or operating overhead (e.g. communications, lights, etc.)
• Incidental costs associated with running any class (e.g. copying exams, equipment not fully consumed within a class, research lab equipment, office equipment)

Implementation of Approved Course/Lab Fees

Once an Academic Unit decides a Course or Laboratory Fee is necessary, the department should work with their Unit’s Budget Lead and Dean or Associate Dean to submit a change in the Curriculum Information Management (CIM) system. The completed and approved fee is then forwarded to the University Committee on Degree and Curriculum (UCDC) for final approval.

After approval by UCDC, the UM-Dearborn Registration Office, in coordination with Student Accounts, will assign the Course Fee to the appropriate courses in each semester the fee is active.

Academic Units are responsible for reconciling revenue received with actual course enrollment, as student disenrollment may affect actual revenue. The Academic Unit Budget Lead should contact Financial Services if student disenrollment has a material impact on total revenue to the Unit.

2) Program Fees for Extraordinary Costs Supporting On-Campus, Credit Instruction

Academic Units may need to recover extraordinary costs supporting specific degree programs, particularly at the graduate level, when academic programs have:

1. New costs apply directly to students in the program
2. Costs span a substantial portion of the program’s curriculum
3. Fees are assessed only to students enrolled in and benefiting from the specific program or field of study

Examples of allowable extraordinary costs for Program Fees include:

• Materials, supplies, devices, or equipment fully consumed within the program
• Printed materials, licensing, or copyright fees (such as lab experiments and case studies)
• Goods retained by students (videos, reference materials, software)

Implementation of Approved Program Fees

When extraordinary program-level costs are identified, the Department should collaborate with their Unit’s Budget Lead and Dean or Associate Dean to submit a change in the Curriculum Information Management (CIM). The completed and approved Program Fee is then forwarded to the University Committee on Degree and Curriculum (UCDC) for final review and approval.

Once approved, the UM-Dearborn Registration Office, working with Student Accounts, will assign the Program Fee to students enrolled in the program each semester the fee is active.

Academic Units are responsible for reconciling revenue received with actual program enrollment, as student disenrollment may affect actual revenue. The Academic Unit Budget Lead should contact Financial Services if student disenrollment has a material impact on total revenue to the Unit.

3) One-Time Fee for Special Off-Campus Educational Opportunities (e.g., student travel abroad)

Academic and Service Units on the Dearborn campus may offer off-campus credit or non-credit educational experiences and may assess a one-time fee per participant to cover any new, extraordinary costs incurred by offering these opportunities.
Campus units offering off-campus opportunities must establish a review and approval process to determine how one-time fees are calculated and reviewed by unit leadership. Units should work with their Unit’s Budget Lead and Dean, Associate/Assistant Dean, or Senior Officer for final approvals. These fees do not require approval by UCDC, however, all approvals should be obtained by the Unit prior to advertising fees to participants.

Allowable Costs:

• Materials, supplies, devices, or equipment fully consumed during the educational opportunity, including materials  and supplies not easily obtained through local retail vendors;
• Printed materials, licensing, or copyright fees;
• Goods that are retained by the student once the course is completed (videos, references  materials, software);
• Admission, entry fees, or participation costs for local out-of-classroom experiences;
• Classroom, facility, and information technology resources consumed at a host location;
• Travel costs for excursions, field visits, entrance fees that are part of the educational program;
• UM-Dearborn faculty or instructor travel, accommodations, and/or meals not already paid to the employee;
• UM-Dearborn staff travel, accommodation, and/or meals for direct supervision or logistical support not already paid to the employee;
• Stipends paid to local (non-UM) staff for program supervision, to direct travel activities, or provide  logistical support;
• Host institution fees for non-instructional items and services (example: housing);
• Pre-departure orientation programming, materials, and hosting costs;
• On-site orientation programming, materials, and hosting costs;
• Student transportation to and from the program location(s);
• Student accommodations at host location or locations;
• Hosting for required group meals or meetings;
• On-site transportation;
• Required UM travel insurance for international travel;
• Currency conversion costs and/or wire transfer fees for international travel.

Disallowable Costs:

• Costs for the companions or dependents of employees;
• Costs for regular faculty or staff who are already required to be on-site for the program;
• Costs or reimbursements of regular faculty or staff compensation expenses or supplemental  stipends already funded through tuition and course premiums;
• Department administration or operating overhead (example: regular payroll, telephones and  communications, lights, copier leases, utilities, etc.).

It is important that Campus Units strive to be as accurate as possible with fee calculations to avoid potentially over- or undercharging participants. When calculating fees, units should also consider other sources of funding—such as gifts or sponsored funds—that may reduce extraordinary costs before finalizing and advertising participant fees.

Campus Units may not intentionally overcharge participants to generate new revenue to offset different activities or other costs within their Unit.  Campus Units are also responsible for setting reasonable deposit and refund processes and communicating those processes in advance prior to taking deposits for the special off-campus activity.

Implementation of Approved One-Time Fee for Special Off-Campus Educational Opportunities

Campus units should first contact their Unit’s Budget Lead or Financial Services to confirm allowable and disallowable costs when calculating a one-time fee. Units should also consult with their Budget Lead or Financial Services to ensure fee accuracy and coverage of all extraordinary programmatic costs prior to submitting the fee for approval by the Dean, Associate Dean, Assistant Dean, or Senior Officer.

Once approved, the Budget Lead should work with Financial Services and Student Accounts to ensure the fee is billed to each participant in a timely and accurate manner.

Campus Units are responsible for reconciling revenue collected from each participant for each educational opportunity, taking into account that participant disenrollment and refunds may reduce actual total revenue. Campus Unit shall contact their Unit’s budget lead if approved one-time fees result in a shortfall after necessary and required expenses are paid from fee revenues.

All approved course, program, and one-time fees must be assessed and billed directly to students through their University of Michigan student account. This ensures students may use all available deposits and financial aid resources to offset costs, and that all fees are accurately recorded on the student's Form 1098-T for Qualified Tuition and Related Expenses.

Campus Units must accept that fees paid by students may be partially refunded if the participant disenrolls or withdraws from courses or sponsored activities. Campus Units should work directly with their Unit’s Budget Lead, Financial Services, and Dearborn Student Accounts to manage refunds and any potential revenue losses due to student disenrollment.

Primary Policy: UM-Ann Arbor SPG 601.39 Student Tuition and Fees (first issued August 1, 2019; revised July 1, 2020)

• Date First Issued: September 10, 2015
• Approved by UCDC: February 9, 2023
• Second Revision: March 8, 2023
• Third Revision: March 4, 2026
• Revision endorsed by the University Curriculum and Degree Committee March 26, 2026 in association with Academic Affairs
• Next Policy Review Date: July 1, 2029
• Policy Owners: Financial Services & Academic Affairs effective March 26, 2026.