Tuition Discounting at Small, Private Baccalaureate Institutions

• In Event: 29.043 - Tracing the Labyrinth: Exploring the Interaction Between Campus Governance and Public Policy

Abstract

Tuition discounting (TD), a practice whereby institutional grants are used to subsidize a student’s educational expense, has become a common practice at four-year institutions. TDs impact on financial aid, budgets, and enrollments continues to increase, raising concerns about the long-term sustainability of the practice. Using panel data of four-year, small, liberal arts colleges from 2003-2012, this research examined the relationship between TD practices and net tuition revenue (NTR). In the past 10 years, average NTR has increased but lags behind increases in tuition and gross tuition revenue. Additionally, there is a point at which TD practices do not generate additional revenue. Implications of these findings for institutional and higher education policy and practice are discussed.

Authors

• Ann Marie Gansemer-Topf, Iowa State University

• Luke Behaunek, Simpson College