"The report is illustrative of a slight drop in enrollment and enrollment of lower-income students," Eckel said.

Anna Griswold, assistant vice provost for enrollment management and student aid, said the possible drop in affordability for low- and middle-income students was an important issue for the university.

"If low- and middle-income students lose purchasing power by grants not keeping up with rising tuition, it could present difficulties for those students to enroll," she said.

Griswold said Penn State could be becoming more "elitist" as a result of increasing tuition.

"If we look at the trend, we see it going in that direction, but it is very gradual," she said. "We need students from all socioeconomic backgrounds to meet our enrollment goals."

The informational report also said that, in 2003-04, 78 percent of Penn State students received some form of financial aid.

Another issue schools nationwide are facing, Eckel said, is the lack of increases in maximum grant awards from the Pennsylvania Higher Education Assistance Agency (PHEAA) and Federal Pell Grants.

Both programs currently provide up to $4,000 annually in aid to qualified students.

"With appropriations lower and growing costs of education, we're widening the gap," he said. "[We] don't want to send messages to students that discourage them [from applying]."

Trustee David Jones said the university does not have complete control over funding.

"Much of that is state and federal policy," he said. "There is a limit to how much we can influence that."

Jones said rising expenses and declining state support are two reasons for the increased expenses.

"I don't know of anybody on the board who isn't disturbed by the rising tuition," he said.

The Committee on Educational Policy also presented an informational report detailing a decrease in enrollment at University Park and Commonwealth Campuses.

From fall 2003 to fall 2004, the number of undergraduate students at Commonwealth Campuses decreased by 871.

Penn State spokesman Bill Mahon said declining enrollment at Commonwealth Campuses is largely a result of Pennsylvania's "demographic shift," which includes fewer high school graduates and an older average age.

"If there is a campus with tough times ahead in local demographics, we want to interest students from outside," he said.

Griswold said the Trustee Scholarship is a program established to narrow the gap between "rising tuition and stagnant grant programs."

"Five million [dollars] is spread over a five-year period and used to match donors contributions toward an endowed scholarship," she said. "It doubles the amount of scholarship funds available."

She said the university matches the amount contributed by a private donor to effectively allow the issuance of two scholarships.