How tuition rates are set

← All Insights

1. Tuition follows cost

Training provided to international students must be priced on the cost of providing it, under Chapter 7 of Volume 15 of the Financial Management Regulation (FMR) (FMR Vol. 15, Ch. 7, para. 22.0). Several factors decide which tuition rate a student gets. They include the source of financing, whether the country is a high-income country, whether it has a reciprocal training agreement with the United States, and whether it currently receives International Military Education and Training (IMET) funding. The rate tiers themselves are described in what a training place costs. This piece covers the pricing rules that sit behind them.

2. Standard and nonstandard courses

Standard formal training includes flying, technical and language courses (FMR Vol. 15, Ch. 7, para. 22.1.1). Tuition is generally shown as a cost per student or per student week. Nonstandard formal training follows the same pricing concepts with some exceptions (FMR Vol. 15, Ch. 7, para. 22.1.2). Observer training is one. International students who audit a course are charged the same price as enrolled students (FMR Vol. 15, Ch. 7, para. 22.1.2.1). Specialized or dedicated training programs and training teams have their own pricing sections, covered in pricing dedicated programs and training teams (FMR Vol. 15, Ch. 7, para. 22.1.2.6 and FMR Vol. 15, Ch. 7, para. 22.1.2.7).

Distance learning developed solely for international students is priced to recover every cost to the government (FMR Vol. 15, Ch. 7, para. 22.1.2.2.1). A material-only course on computer media or video teleconference must recoup the in-house and contract costs of developing and producing it, plus the cost of the materials. Where the course adds online proctor services and testing, the actual or estimated cost of those services is added (FMR Vol. 15, Ch. 7, para. 22.1.2.2.2). A resident course built the same way also carries the costs of resident training (FMR Vol. 15, Ch. 7, para. 22.1.2.2.3).

A dedicated course is one developed or provided solely for international students, and it is priced under the rules for specialized programs (FMR Vol. 15, Ch. 7, para. 22.1.2.3). Contractor-provided courses include the contract costs, with indirect costs priced under the normal tuition rules if taught at a government-owned, government-operated facility (FMR Vol. 15, Ch. 7, para. 22.1.2.4). Courses at the Inter-American Air Forces Academy and the Western Hemisphere Institute for Security Cooperation exclude the fixed costs of running the schools, meaning costs that do not vary with student load (FMR Vol. 15, Ch. 7, para. 22.1.2.5).

3. Courseware

Courses developed for Defense Department personnel are not charged a share of their original development costs when international students attend (FMR Vol. 15, Ch. 7, para. 22.2.1). The regulation explains that courses and courseware are not Significant Military Equipment or major defense equipment. The cost of producing unique material based on American courseware, such as sanitizing, customizing and country standardization, must still be recouped.

When a partner asks for courseware the United States does not already offer, for training in the United States or at home, the partner pays the full development cost (FMR Vol. 15, Ch. 7, para. 22.2.2.1). That includes personnel or contractor costs, publishing supplies and any shipping to the country (FMR Vol. 15, Ch. 7, para. 22.2.2.2). Actual costs should be used where possible, and estimates are acceptable if actual data are unavailable, but the costs must have a reliable audit trail (FMR Vol. 15, Ch. 7, para. 22.2.2.3). The courseware may later be used for another country if deemed appropriate (FMR Vol. 15, Ch. 7, para. 22.2.2.1).

4. Damage to American equipment

Training cases that use American equipment such as aircraft, trucks or simulators, without charging for attrition, must carry a liability statement (FMR Vol. 15, Ch. 7, para. 22.3.1). It reads: "The Purchaser is liable for any and all damages to U.S. Government equipment caused by negligence on the part of the student". For IMET students the statement goes in the invitational travel order. Equipment destroyed through student negligence must be reimbursed in full. Claims from combined exercise activities with NATO countries under an offer are dealt with under Article VIII of the NATO status of forces agreement, and the matching Partnership for Peace agreement (FMR Vol. 15, Ch. 7, para. 22.3.2).

5. Obligating the money

A training course is generally an entire effort, particularly contracted training (FMR Vol. 15, Ch. 7, para. 22.4.1). But government-provided training funded by Defense or State Department appropriations must end by the funds expiration date, because it is severable and must not cross a fiscal year. Crossing a fiscal year is allowed only where a specific authority permits, such as section 333 capacity building, IMET, the Combating Terrorism Fellowship Program and the regional centers. Funds are obligated on the date the student enters the course (FMR Vol. 15, Ch. 7, para. 22.4.2). They may be obligated earlier for long-range planning, if the obligation meets a bona fide need of the current year within the period of availability.

6. Publishing and adjusting rates

The military departments compute tuition rates each year and publish them in the Training Military Articles and Services List, aiming for October 1st (FMR Vol. 15, Ch. 7, para. 22.5). The rate is the one in effect for the year the student enters the course or phase, and approved rates stay constant for the year. Current-year adjustments are made only to correct significant computation errors, reflect syllabus changes, or meet major unexpected changes in costs such as fuel and salaries (FMR Vol. 15, Ch. 7, para. 22.6.1). The country is billed for the actual time in training when it differs from the scheduled length, with adjustments made within 90 days after the course ends. Future-year estimates are adjusted for inflation using the Comptroller’s published rates (FMR Vol. 15, Ch. 7, para. 22.6.2).

Key terms

Dedicated course	A course developed or provided solely for international students.
Non-inventory courseware	Courseware built at a partner’s request that the United States does not already offer.
Liability statement	The clause making the purchaser liable for damage caused by student negligence.
Severable training	Government-provided training that must end within the fiscal year of its funds.
Training Military Articles and Services List	Where the annual tuition rates are published.

Every statement above links to the document behind it. The full source list for this piece is on the sources page.

This page describes public United States government programs for general information. It is not legal, regulatory or procurement advice, and it does not address the facts of any particular case.

How Sentfore supports this

Training delivered abroad needs facilities and support on the ground. Sentfore works at the delivery end of defense programs in difficult environments, providing secure movement, protective security, facilities and life support. Requirements can be sent through the contact page.