Penn State’s Board of Trustees on Friday approved tuition increases for the University Park campus for the 2027-28 academic year and awarded President Neeli Bendapudi a $210,000 performance bonus.
The bonus equals 15 percent of Bendapudi’s $1.4 million base salary and reflects the maximum allowed under her contract, which was revised in September 2025. Trustees approved the bonus unanimously, according to published reports.
University Park undergraduates will see tuition rise 2.5 percent, while out-of-state students at the main campus will pay 4 percent more. In-state undergraduate tuition at 20 branch, or Commonwealth Campuses, will remain frozen for a fifth consecutive year.
Under the new rates, first- and second-year University Park students will pay $21,400 in annual tuition, an increase of $522. Room and board will rise 2.5 percent to $15,896.
The board also approved a 3 percent pool for merit-based salary increases for employees and a 4 percent increase in graduate assistant stipends.
Board Chair David M. Kleppinger said Bendapudi has helped guide the university through a period of financial stability and long-term planning. Trustees also approved Bendapudi’s performance goals for the coming year, though those goals were not made public.
Bendapudi said Penn State’s budget continues to reflect investments in students, employees and the university’s broader mission.
“With this budget, Penn State is continuing to invest in excellence — in the people and initiatives that change students’ lives, strengthen communities and drive Pennsylvania’s future,” she said.
The bonus follows a compensation revision approved last year that increased Bendapudi’s total pay and extended her contract through 2032. Penn State officials said the university raised $662.7 million in 2025-26, above the average annual amount raised during the previous campaign.
The board also delayed the public launch of a planned multibillion-dollar fundraising campaign. No new launch date has been announced.
