Tuition Discount Rates Rise Again

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To soften the blow of ongoing tuition increases and in an effort to accommodate those students who simply can’t pay the sticker price, discount rates at private colleges and universities have been on the rise. 

But, with tuition at private institutions representing a critical revenue stream, totaling one third of annual operating budgets, further discounting threatens to jeopardize their long term survival.

Based on data provided by the National Association of College and University Business Officers’ annual survey “projected discount rates for 2014 are 48 percent for first-time full-time freshman and 41.6 percent for all undergraduates” combined. This “attention grabbing” finding from an article in the Chronicle of Higher Education by Beckie Supiano entitled Tuition Discount Rates Rise Again, Signaling Potential Challenges for Private Colleges.

Supiano further cautions that, “While rising discount rates are often seen as warning sign for the sector… the other data in the report… may present even grimmer evidence of financial challenges ahead.”

To read the full article click here.

To see highlights of the associations latest Tuition Discounting Study or to purchase the full report click here

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