After years of hefty tuition increases, a few colleges are cutting prices and trying to wean families from discounts.
More than a half-dozen schools have slashed their sticker prices starting this fall or next as part of simplifying the college-financing process, which has become a patchwork of aid deals and discounts for families. Administrators say the price cuts could actually make schools money by attracting more new students and helping retain cost-conscious ones.
Published tuition rates have soared in the last decade, but only a small percentage of families actually pays full freight. Between grants to needy students and merit scholarships to entice other desirable candidates, schools these days are giving back nearly 50% of gross tuition revenue in the form of aid and awards, according to the National Association of College and University Business Officers.
Such discounting has become so widespread that many small, private colleges say they are stuck in a vicious cycle: They won’t meet enrollment goals if they charge full price, even to affluent families, but they can’t afford to continue cutting everyone a deal.