A recent post from the National Association of College and University Business Officers (NACUBO) has announced that private colleges and universities are continuing to increase the tuition discount rate. This trend, which has been ongoing for 13 years, has resulted in limited net tuition revenue growth. Tuition discounts are revelant due to changing student demographics, growing demand for institutions, and cost sensitivity. Many four-year private colleges/universities use tuition discounting as a strategy to increase undergraduate enrolments.

Some statistics from 2012-2013:

  • 44.8% tuition discount rate for first-time, full-time freshmen
  • Estimated to grow to 46.4% (2013-2014)
  • 87.7% of freshmen received an institutional grant
  • Estimated to grow to 88.9% (2013-2014)
  • 80.4% grant dollars awarded by private, four-year institutions met student’s financial needs

 

Full Press Release: http://www.nacubo.org/Documents/about/pressreleases/2013TDSPressRelease.pdf