Colleges Keep Increasing Discounts To Keep Students Coming
Career College Central summary:
Colleges and universities continue to give record-high discounts on tuition, which is good news for students, but bad news for the institutions, a new report shows. The so-called discount rate—the amount of revenue that goes back out the door in the form of financial aid to fill seats—was projected to have grown to more than 46 percent at colleges and universities this past academic year, according to the report, from the National Association of College and University Business Officers.
That’s the highest ever, up from just under 45 percent the year before. The organization blamed flat enrollment driving greater competition for students. This trend means that, even as they raise their advertised prices faster than the rate of inflation, many colleges and universities are giving discounts so steep that they’re falling behind.
Overall revenue from tuition between 2012 and 2013 actually fell by one-half of 1 percent, the report said.
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THE HECHINGER REPORT