What is Tuition Discounting?
Tuition discounting is a financial strategy used by colleges and universities to reduce the published tuition price for certain students. This practice allows institutions to attract and retain students who might otherwise be unable to afford the full cost of attendance.
Key aspects of tuition discounting include:
Institutional grants and scholarships: The primary method of discounting, where schools offer financial aid from their own resources
Net price vs. sticker price: The difference between the published tuition (sticker price) and what students actually pay after discounts (net price)
Discount rate: The percentage of tuition and fees that institutions forgo in favor of grant-based financial aid
Strategic enrollment management: Using discounts to shape the incoming class and meet institutional goals
Tuition discounting can benefit both students and institutions by:
Making higher education more accessible to a diverse range of students
Helping institutions meet enrollment targets and revenue goals
Attracting high-achieving students who might otherwise choose competing schools
However, excessive discounting can potentially lead to financial challenges for institutions if not managed carefully.