Resetting Prices: Estimating the Effect of Tuition Reset Policies on Institutional Finances and Enrollment.

Autor/inn/en	Ward, James Dean; Corral, Daniel
Titel	Resetting Prices: Estimating the Effect of Tuition Reset Policies on Institutional Finances and Enrollment.
Quelle	In: Research in higher education, (2022) 6, S.862-892Infoseite zur Zeitschrift PDF als Volltext Verfügbarkeit
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	0361-0365
DOI	10.1007/s11162-022-09723-6
Schlagwörter	Institutional aid; Enrollment management; Finance; Tuition discounting; Organizational behavior
Abstract	Abstract Private nonprofit colleges are increasingly using tuition resets, or a decrease in sticker price by at least 5%, to attract new students and counter declining demand. While discounting tuition with institutional aid is a common practice to get accepted students to matriculate and to increase affordability, a tuition reset is a more transparent approach that moves colleges away from a high aid/high tuition model. The authors find minimal evidence that these policies increase student enrollment in the long run, but that there may be short-term impacts. As expected, institutional aid decreases and varies directly with the size of the sticker price reduction. The average net price students pay decreases, but this effect may be driven by changes in the estimated non-tuition elements of the total cost of attendance. Finally, net tuition revenue appears unrelated to tuition resets. These findings call into question the efficacy of this practice.
Erfasst von	OLC
Update	2024/1/01