Dive Brief:
- The College of Saint Benedict and Saint John’s University, partner institutions in Minnesota, informally considered the idea of locking in tuition some years ago, reports The Chronicle of Higher Education, but they ultimately didn't go for it.
- These institutions decided to opt out of the tuition locking option because they weren't planning on enrolling larger freshman classes and already had high retention rates, they wanted to rein in tuition hikes, and they considered a price lock too risky — any number of factors could affect whether a college needs to raise tuition, like enrollment declines or lack of funding from the state.
- For institutions considering tuition lock-in as an option, these reasons may also play out for them if they have similar sizes and conditions, but other institutions may still want to consider it as a viable strategy for schools trying to increase retention rates, as being incapable of affording college is a top reason why students drop-out. Lock-in could have some advantages for universities not fearing declines in enrollment or other concerns, particularly as it still allows tuition flexibility in each freshman enrollment class.
Dive Insight:
Higher ed leaders are increasingly feeling the pressures of addressing student concerns on the high cost of tuition. A 2016 report from Third Way, in looking at data from the College Scorecard, highlighted that half of students going to colleges and universities are not graduating, more often than not due to insufficient income. Specifically,in in only 26% of private, non-profit schools, two-thirds of the full time students manage to get a degree within six years.
Tuition lock-in, which makes the tuition at the time of enrollment for the student the same for all four years, is an option that some institutions can consider in order to make it easier for students — especially low-income enrollees who often juggle jobs with school — to manage the cost of college without fear of unexpected tuition hikes.
But of course, insight from the College of Saint Benedict and Saint John’s University shows that administrators need to consider a number of factors, like their enrollment projections and funding restrictions, before buying into a strategy like tuition lock-in. Before taking on this plan, administrators should also look toward current state requirements on tuition, as private and public institutions may have to deal with different regulations. In addition to that, considering how financial aid factors into lock in is equally important, because shortchanging aid for tuition stability could potentially hurt students who need the funds in the long run.