Dive Brief:
- Rosemont College, a private Catholic school in Philadelphia, will slash its tuition from $46,000 to $30,000, a 43% drop that will primarily reduce aid disbursements; students will generally see a savings of about $815.
- The Inquirer reports college leaders opted for the cut to encourage middle-income families who don't qualify for federal or state grants -- and who eliminate schools based on costs to consider the school.
- At schools that have tried the same tactic, a jump in enrollment has actually resulted in an increase in tuition revenue, but some campuses saw declining enrollment, perhaps because of a loss in perceived prestige.
Dive Insight:
Utica College in New York is cutting tuition 42%, from $34,466 to $19,996. Syracuse.com reports the school made the decision with the same rationale as Rosemont College.
At a time when average student debt is higher than ever, sticker shock is a recruitment concern. Especially considering the average discount rate for first-time, full-time freshmen at private schools is now nearly 50%.