Four-year private institutions continue to rely on—and increase—tuition discounts to attract students, but the strategy is not improving the bottom line, according to a recent study from the American Educational Research Association.
An analysis of U.S. Department of Education data from 2003 to 2012 shows that among 448 small, four-year liberal arts colleges, both the number of institutions and the percentage of discounts grew. More than half of the institutions analyzed currently award institutional grant aid to 95 percent or more of students.
However, institutions are providing the increased aid from general operating budgets. So, although pricing levels and enrollment are up, the net tuition revenue gains have been offset by the discounting.
For more information, read the report from the American Educational Research Association.