A new national report card on higher education has given Alaska an "F" for affordability.

The report comes as the Board of Regents prepares to debate a 7 to 10 percent tuition hike, part of which could fund a need-based scholarship. The study, released by the National Center for Public Policy and Higher Education, gave Alaska poor marks because rising tuition costs have not been met with need-based financial aid.

"Alaska's investment in need-based financial aid is very low compared with top-performing states, and the state does not offer low-priced college opportunities," the report says.

The Board of Regents will vote Friday on increasing tuition by at least 7 percent, with the possibility of an extra 3 percent going towards a need-based scholarship program.

The center rates each state by six criteria, including preparation, participation, benefits, completion, learning and affordability. Most of the categories receive letter grades through comparison to the top-performing states.

However, affordability is measured by comparing the relative cost of attendance in the early 1990s to the cost of attendance today. The survey reports that Alaska has "made no notable progress in making higher education affordable."

This state of affairs particularly hurts low-income families, the report says. Students from low-income families have to spend about 36 percent of their annual income to attend college in Alaska, it says, even after financial aid is factored in.

Individuals coming from an average family in Alaska would need to spend 24 percent of their family's total income to attend college in-state, compared to 16 percent it the top states in the early 1990s.

The trend of increasing costs of attendance is national and has been for some time. Since 1982, college tuition and fees have gone up 375 percent, while the median family income has increased only 127 percent, the report says. After-college debt has also grown, it says, and the ability to work in the nonprofit sector has been diminished.

Many states lack effective policies for college tuition, including Alaska, the report says. The authority to determine tuition rates has been delegated from the state legislature to the Board of Regents, which governs the University of Alaska. As a result, in years when money is tight, regents have increased tuition to make up for budgetary shortfalls.

Since 1999, tuition has increase 50 percent, according to UA statistics. Fees have increased 70 percent.

Many states have need-based scholarship programs that ease the burden to low-income families. The University of Alaska has only recently joined the club. In Feburary, the Board of Regents approved the University of Alaska Need Based Financial Aid Program, a $1.8 million-a-year program that provides up to 2,200 students with $400 a semester for two years.

The university is looking to the legislature to increase the scholarship. UA spokeswoman Kate Ripley said such a program is a "state responsibility, not a university one." The university wants the "legislature to take this one on," she said.

ASUAF President Sven Gilkey agreed, saying a "needs-based scholarship program should be (funded) by the state as it is a societal issue and not a university issue."

UA President Mark Hamilton has proposed a base tuition increase of 7 percent for fall 2007. Hamilton has also asked the regents to explore upping the hike to as much as 10 percent. Revenue gained from those additional increments beyond 7 percent would go to need-based financial aid.

The university expects that each additional 1 percent increase in tution would mean $750,000 for a need-based program.

"We really need to look at the overall question of affordability, and that takes into account a while host of things, including financial aid and costs associatied with room and board, books and fees," Hamilton said in a statement.

But some students have said their tuition dollars shouldn't be used that way.

"I don't think I should have to pay for some one else's education when I can't afford my own," said Byron Thorpe, an ASUAF senator. Thorpe is sponsoring a resolution against the proposed tuition hike.