Pricing Policies Adopted by METU NCC
Act No. 60/2003 of Turkish Republic of Northern Cyprus, known as the Act of 'Foundation, Mission, Operation and Supervision' of Middle East Technical University Northern Cyprus Campus, decrees that a tuition fee is charged by the Campus. Our campus does not rely solely on tuition revenues and accommodation fees to remain financially solvent. When tuition fees and accommodation fees are set, our primary motivation is to minimize our students' financial burden as much as possible.
Our campus has obligations to increase tuition and dormitory fees annually at a rate not lower than the CPI's (Consumer Price Index) rate. And our university, commissioned by the government to open a campus in the Turkish Republic of Northern Cyprus, has an obligation to act financially on the basis of the model, which builds upon laws and protocols.
An increase based on the CPI's rate is not a 'real' increase, in other words, it is not an additional charge. An increase based on the CPI's rate helps to compensate for the loss of value of the money. Please visit the website of the TRNC State Planning Organization for further details on CPI and calculation of the CPI.
The removal of the VAT exemption, which was granted to our campus during its establishment phase by the TRNC Assembly of the Republic, on January 1, 2016 also affected our wage policies. Consequently, our campus had to apply different VAT rates on tuition fees and facility fees.
The Campus administration being well-aware of the fact that increased tuition fees and facility fees are accompanied by a decline in students' quality of life, continues its work and negotiations with the relevant parties to keep the fee increases at the lowest level possible.
Principles on the setting of fees are provided below:
a) Tuition Fees
Tuition fees will be increased in value by CPI point compared to the previous academic year's figures. Taking into consideration the challenges posed, our University has not raised fees during the first year of the COVID-19 pandemic. While setting the increase in tuition fees, December CPI rate of the relevant year in the TRNC are taken into account.
b) Registration Fee
Registration Fee is a fee that came to the fore following the removal of the VAT exemption granted to our campus on January 1, 2016. This fee enables the Campus to eliminate the necessity to issue invoices and collect VAT for each student or transcript. It also aims to save students from having to deposit money into an account for each service they use. Setting a Registration Fee also aimed at generating some additional funds for the Campus. This additional income is used to meet academic and social expenses that could not be met through own resources of the Campus.
Care was taken to have dormitories and room types that would meet different needs when designing the architectural plan for our campus and to provide different types of rooms at prices that appeal to every budget when setting the accommodation fees. The annual accommodation fee rise is a mandatory legal obligation. While setting the increase in accommodation fees, increases in the previous year and the TRNC CPI rate for December of the relevant year are taken into account.
The fees for off-campus housing options are determined by the property owners in direct proportion to the demand, and the Campus administration has no right to interfere with these prices. However, our administration encourages property owners in the region to follow student-friendly pricing policies. Campus administration also encourages investors to build new private dormitories in the region because the rent increase can usually only be controlled within an affordable range by creating more housing opportunities.
d) Food & Beverage Services
Services such as cafeteria, canteen, etc. are provided by private enterprises, not by the Campus.
When setting fees for catering services, the aim is to enable students to easily access quality food as well as helping the enterprises providing services on campus to remain financially sustainable.Inspections are conducted at the Campus on a regular basis to ensure that standards defined by laws and regulations are met while providing these services. However, fees are set by the service provider.
Knowing that the cheapest and the most preferred meal option for students on our campus is the table d'hôte menu, every effort is made to keep the price of this menu as low as possible. Tenders are held periodically to select a preferred supplier that will run the main cafeteria of the Campus. In the tendering process, all potential suppliers are evaluated on both the price and quality of their products and services. The University authorizes the supplier that submits the lowest price for a table d'hôte menu to run the Cafeteria.
Subsidies provided by the government make it possible for the state universities in Turkey to offer table d'hôte menu in their cafeterias at very low prices. Our campus, however, is not granted an additional subsidy for meals served to students due to the financial model it has adopted.
e) Transportation Services
During the period when our student population was smaller, transportation was provided by the Municipality of Güzelyurt free of charge. When the Municipality of Güzelyurt stopped providing free transportation, a tender was conducted to find a company that will provide transportation services to the Campus, and thus a transportation system charging a fare to passengers was launched. During the tendering process, all potential suppliers are evaluated and the University authorizes the company that offers the lowest price to provide the relevant service to the Campus, as mentioned in the 'Food & Beverage Services' section of this document.
Fuel prices, minimum wage and the CPI rate are taken into account when setting fees for transportation services. Negotiations based on these principles are held between the company providing the service and our administration and efforts are made to provide transportation services at the lowest price possible.
Financial difficulties have inevitably arisen for reasons including the worldwide increase in inflation rate and the fuel crisis, which has become a global issue, during the pandemic and afterwards, in addition to the relatively high cost of basic food items, electricity and fuel in the country.
f) Other Campus Facilities (Sports Facilities, Library etc.)
When setting fees for other on campus facilities, the principle of meeting the operating costs of the facility by using its own revenues is aimed, however, we do not yet have a facility that has sufficient revenues to cover its own expenses since METU NCC avoids fee increases that can have a negative impact on students.
Facility expenses also include energy costs and maintenance costs resulting from wear and tear on the equipment of the facilities. Facility use fees are subject to an increase each semester in line with the annual Consumer Price Index (CPI) in general. A fee increase is to ensure that the facility is running the way it is supposed to.