Pricing Pressures Escalate

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Published by Inside Higher Ed

That parallels something experts often say about pricing conversations: a college’s price is best considered in concert with market position, long-term strategy and developments in the broader higher education environment.

“There is downward pressure in pricing, but what we’re seeing is that what each institution should do is idiosyncratically different from what every other institution should do,” said David Strauss, a principal at Art & Science Group, a Baltimore-based consulting firm. “If you can’t afford to study and get the right answer, it’s usually the wrong answer over the long term.”

‘You Have to Be a Very Good Listener to the Market’

Signs of pricing pressure existed long before the coronavirus crisis exposed them.

The National Association of College and University Business Officers conducts an annual Tuition Discounting Study that looks at the sticker prices four-year private nonprofit colleges and universities post, the amount of financial aid they provide and the tuition discount rates that reveal what percentage of sticker prices institutions never actually collect from students. That study has also examined net tuition revenue -- the amount of money institutions do collect from students.

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