Diminishing Returns for Tuition Discounting

Rick Seltzer:

Attracting students with tuition discounting has its limits — and one study suggests a surprisingly large number of small colleges and universities are flirting with those limits.

The study, which is being presented Friday at the American Educational Research Association’s annual meeting, looks at the practice and effects of tuition discounting over 10 years at a group of 448 small liberal arts colleges across the country. Tuition discount rates have risen substantially as institutions offer larger and larger scholarships and grants to students in order to entice them to enroll.

Financial aid leveraging.