A recent survey has found that tuition discounting, a practice where colleges and universities offer discounts on tuition to attract students, is still on the rise. The survey, conducted by the National Association of College and University Business Officers (NACUBO), found that 87% of private institutions and 71% of public institutions reported offering tuition discounts in the 2019-2020 academic year.
Tuition discounting has been a common practice for many years, but the survey results suggest that it is becoming even more prevalent. The high percentage of institutions offering discounts indicates the fierce competition for students in today’s higher education market.
The survey also found that the average institutional discount rate for first-time, full-time students was 52.6% at private institutions and 13.5% at public institutions. This means that students are, on average, paying significantly less than the published tuition rates at these institutions. While this may be good news for students looking to save money on their college education, it raises concerns about the financial sustainability of colleges and universities.
Tuition discounting can put a strain on institutional budgets, as it reduces the amount of revenue that schools are able to collect from tuition. This can lead to financial instability and put pressure on institutions to make difficult decisions about their spending and programs.
Despite the potential drawbacks of tuition discounting, it remains a popular strategy for colleges and universities looking to attract students in an increasingly competitive market. By offering discounts, schools can make their education more affordable and appealing to prospective students, which can help them meet enrollment goals and maintain financial stability.
As tuition discounting continues to rise, it will be important for colleges and universities to carefully consider the long-term implications of their discounting practices. While discounts may be an effective way to attract students in the short term, they can also have negative consequences for institutional finances and sustainability. Colleges and universities will need to strike a balance between offering competitive discounts and ensuring their financial health in the years to come.
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