Private colleges set a new record for discounting the tuition they charge students, according to a report released on Thursday by the National Association of College and University Business Officers.
The annual NACUBO Tuition Discounting Study, reveals that the estimated average tuition-discount rate for first-time undergraduates at private colleges was 54.5 percent in the 2021-22 academic year. For all undergraduates, the average tuition-discount rate was 49 percent.
Tuition discounts, which have been on an upward trajectory for more than a decade, are a common strategy used by private colleges to persuade students to enroll. The colleges use institutional aid to substantially reduce what often looks like a daunting sticker price.
The share of all undergraduates who received aid in the form of institutional grants in 2021-22 was roughly the same as last year, about 83 percent. However, students were awarded larger grants than in previous years, enough to cover an average of 60.7 percent of the sticker price (the published tuition and fees) for first-time undergraduates and an average 55.7 percent for all undergraduates.
Adjusted for inflation, net tuition revenue from first-time undergraduates fell 3.2 percent in 2021-22, and rose slightly, by 0.6 percent, for all undergraduates, the study found. Enrollment at the institutions surveyed rose 7.1 percent among first-time undergraduates, while enrollment for all undergraduates — which had declined for several years, mostly held steady from the year before.
“Despite relatively flat enrollment and declines in net tuition revenue over time, our data show that institutions continue to use their resources to deliver on their commitment to access and affordability,” said Ken Redd, NACUBO’s senior director for research and policy analysis, in a news release.
The report is based on a survey of 359 private nonprofit institutions. Among them are small baccalaureate institutions like Beloit, Juniata, and Occidental Colleges, and larger master’s and doctoral institutions like Princeton and Southern Methodist Universities, and the University of Portland.
Learn more about the study’s findings below:
