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In a recent episode of the Higher Ed Demand Gen podcast, HAI Analytics co-Founder and CEO, Emily Coleman sat down with host Shiro Hatori to discuss a critical topic: the challenges of overpricing and over-discounting tuition in the higher education industry.
- Dispelling The Myths
- Discount Rates Aren’T Comparable Across Institutions
- Net Revenue Is A Better Metric
What is the tuition discount metric? Why is it important and what does it really mean? Tuition discounting typically refers to the National Association of College and University Business Officers discount rate, which the organization defines as“the total institutional grant aid awarded to undergraduates,” captured as “a percentage of the gross tuit...
A few short examples can illustrate why we cannot rely on the discount rate as a way of comparing financial health and revenue. If two colleges have tuition discount rates of 50 percent and College A has tuition of $50,000 per year, and College B has tuition of $35,000 per year, we can easily see that College A has greater net tuition revenue per s...
When people talk about reducing discounts, what they are trying to say is that they want to increase net revenue. What can be done to increase net revenue at your school? The following are solutions to consider for slowing discount rate growth and improving net revenue: 1. Engage with a company that does econometric modeling if you don’t already. T...
- Gregory Matthews
CADTH’s current recommendation for the discount rate to use in the economic evaluation of health technologies is 5% per annum for both costs and outcomes. This is substantially higher than the discount rate used by equivalent organizations in other economically developed countries.
Apr 1, 2002 · This paper contains a theoretical discussion of tuition discounting policies and it explores how the marginal benefit, net of the marginal cost of increased enrollment, varies across public/private institutions and across institutions with different missions.
- Robert E. Martin
- 2002
Sep 25, 2017 · Tuition discounting is the practice, on a significant scale, of advertising a list price for enrollment and offering deals that reduce that amount for select students. It is akin to other forms of differential pricing and dynamic pricing, responsive to supply and demand in the marketplace.
Dec 17, 2019 · Dominant questions in this debate include the choice of a particular discounting model, such as constant discounting or a time-declining discount rate schedule, and whether or not to apply the same discount rates to future costs and health effects.
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several questions about tuition discounting: Where does this lead? How much can the system afford? Is there a breaking point? The cost of tuition discounting is not borne solely by increasing tuition costs for all other students. My own research into academic programs shows that other institutional expense categories — notably
