Wednesday, August 26, 2015

Tuition Discount Rates Rise Again, Signaling Potential Challenges for Private Colleges

The Chronicle of Higher Education
August 25th, 2015

Tuition-discount rates at private, nonprofit colleges have once again hit an all-time high, and appear to be holding down net tuition revenue, according to preliminary estimates from the National Association of College and University Business Officers’ annual survey.
The projected discount rates for 2014 are 48 percent for first-time full-time freshmen and 41.6 percent for all undergraduates.
That’s likely to be the most attention-grabbing finding from the association’s latest Tuition Discounting Study, released on Tuesday. While rising discount rates are often seen as a warning sign for the sector, the other data in the report, based on responses from 411 colleges belonging to the association, may present even grimmer evidence of financial challenges ahead.

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