Wednesday, May 17, 2017
National Association of College and University Business Officers, Private College Tuition Discounts Hit Historic Highs Again:
Private colleges and universities are discounting their tuition revenue at the highest rates yet, a new report from the National Association of College and University Business Officers (NACUBO) shows.
By offering grants, scholarships, and fellowships, the 411 private nonprofit institutions that participated in the 2016 NACUBO Tuition Discounting Study averaged an estimated 49.1 percent institutional tuition discount rate for first-time, full-time students in 2016-17—the highest in the history of the survey. This means that for every dollar in gross tuition revenue from those freshmen, institutions used nearly half for grant-based financial aid. Among all undergraduates, the estimated institutional tuition discount rate was similarly record-setting at 44.2 percent.
Average institutional tuition discount rates are rising as larger percentages of students receive grants and scholarships from their institutions, and the awards cover more of their costs. An estimated 87.9 percent of freshmen and 78.5 percent of all undergraduates received grant aid in 2016-17, covering more than half of tuition and fees, on average, for both cohorts.