Paul L. Caron

Monday, May 25, 2020

Before COVID-19, Tuition Discount Rate Hit All-Time High Of 52.6%; Pandemic May Force 340 Colleges Out Of Business

Before COVID-19, Private College Tuition Discount Rates Reached Record Highs:

In the 2019 NACUBO Tuition Discounting Study, 366 private, nonprofit colleges and universities reported an estimated 52.6 percent average institutional tuition discount rate for first-time, full-time, first-year students in 2019-20 and 47.6 percent for all undergraduates – both record highs. By providing grants, fellowships, and scholarships, these institutions forgo about half the revenue they otherwise would collect if they charged all students the tuition and fee sticker price.


After adjusting for inflation, net revenue from tuition and fees across institutions in the study fell by about 1.3 percent.

Inside Higher Ed, Tuition Discount Rates Trend Upward:

The slimmer margins are not a good sign for private colleges, especially those that are already extremely tuition dependent, said Lucie Lapovsky, principal at Lapovsky Consulting and former president of Mercy College.

“I believe as a result you’re going to see more schools go out of business,” Lapovsky said. “Edmit just did something where, because of COVID, they upped their [prediction of] private colleges going out of business from about 240 to about 340. We have both Standard & Poor's and Moody's putting a negative outlook on the sector.”

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And to think...decades of *loud* moral preening from institutions whose "sticker prices" are really sucker prices designed to extract the absolute maximum from their student body via virulent price discrimination.

Yep, let's hear it for the glories of "non-profit" education.

Posted by: cas127 | May 26, 2020 10:08:33 AM