Resetting Prices: Estimating the Effect of Tuition Reset Policies on Institutional Finances and Enrollment.
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| Title: | Resetting Prices: Estimating the Effect of Tuition Reset Policies on Institutional Finances and Enrollment. |
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| Authors: | Ward, James Dean1 (AUTHOR) jdw46@cornell.edu, Corral, Daniel2 (AUTHOR) |
| Source: | Research in Higher Education. Sep2023, Vol. 64 Issue 6, p862-892. 31p. 15 Charts, 2 Graphs. |
| Subject Terms: | *Tuition, *School enrollment, Prices, Wage decreases, Nonprofit organizations, Delay discounting (Psychology) |
| Abstract: | Private nonprofit colleges are increasingly using tuition resets, or a decrease in sticker price by at least 5%, to attract new students and counter declining demand. While discounting tuition with institutional aid is a common practice to get accepted students to matriculate and to increase affordability, a tuition reset is a more transparent approach that moves colleges away from a high aid/high tuition model. The authors find minimal evidence that these policies increase student enrollment in the long run, but that there may be short-term impacts. As expected, institutional aid decreases and varies directly with the size of the sticker price reduction. The average net price students pay decreases, but this effect may be driven by changes in the estimated non-tuition elements of the total cost of attendance. Finally, net tuition revenue appears unrelated to tuition resets. These findings call into question the efficacy of this practice. [ABSTRACT FROM AUTHOR] |
| Copyright of Research in Higher Education is the property of Springer Nature and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) | |
| Database: | Education Research Complete |
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| Header | DbId: ehh DbLabel: Education Research Complete An: 169703930 AccessLevel: 6 PubType: Academic Journal PubTypeId: academicJournal PreciseRelevancyScore: 0 |
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| Items | – Name: Title Label: Title Group: Ti Data: Resetting Prices: Estimating the Effect of Tuition Reset Policies on Institutional Finances and Enrollment. – Name: Author Label: Authors Group: Au Data: <searchLink fieldCode="AR" term="%22Ward%2C+James+Dean%22">Ward, James Dean</searchLink><relatesTo>1</relatesTo> (AUTHOR)<i> jdw46@cornell.edu</i><br /><searchLink fieldCode="AR" term="%22Corral%2C+Daniel%22">Corral, Daniel</searchLink><relatesTo>2</relatesTo> (AUTHOR) – Name: TitleSource Label: Source Group: Src Data: <searchLink fieldCode="JN" term="%22Research+in+Higher+Education%22">Research in Higher Education</searchLink>. Sep2023, Vol. 64 Issue 6, p862-892. 31p. 15 Charts, 2 Graphs. – Name: Subject Label: Subject Terms Group: Su Data: *<searchLink fieldCode="DE" term="%22Tuition%22">Tuition</searchLink><br />*<searchLink fieldCode="DE" term="%22School+enrollment%22">School enrollment</searchLink><br /><searchLink fieldCode="DE" term="%22Prices%22">Prices</searchLink><br /><searchLink fieldCode="DE" term="%22Wage+decreases%22">Wage decreases</searchLink><br /><searchLink fieldCode="DE" term="%22Nonprofit+organizations%22">Nonprofit organizations</searchLink><br /><searchLink fieldCode="DE" term="%22Delay+discounting+%28Psychology%29%22">Delay discounting (Psychology)</searchLink> – Name: Abstract Label: Abstract Group: Ab Data: Private nonprofit colleges are increasingly using tuition resets, or a decrease in sticker price by at least 5%, to attract new students and counter declining demand. While discounting tuition with institutional aid is a common practice to get accepted students to matriculate and to increase affordability, a tuition reset is a more transparent approach that moves colleges away from a high aid/high tuition model. The authors find minimal evidence that these policies increase student enrollment in the long run, but that there may be short-term impacts. As expected, institutional aid decreases and varies directly with the size of the sticker price reduction. The average net price students pay decreases, but this effect may be driven by changes in the estimated non-tuition elements of the total cost of attendance. Finally, net tuition revenue appears unrelated to tuition resets. These findings call into question the efficacy of this practice. [ABSTRACT FROM AUTHOR] – Name: AbstractSuppliedCopyright Label: Group: Ab Data: <i>Copyright of Research in Higher Education is the property of Springer Nature and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.) |
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| RecordInfo | BibRecord: BibEntity: Identifiers: – Type: doi Value: 10.1007/s11162-022-09723-6 Languages: – Code: eng Text: English PhysicalDescription: Pagination: PageCount: 31 StartPage: 862 Subjects: – SubjectFull: Tuition Type: general – SubjectFull: School enrollment Type: general – SubjectFull: Prices Type: general – SubjectFull: Wage decreases Type: general – SubjectFull: Nonprofit organizations Type: general – SubjectFull: Delay discounting (Psychology) Type: general Titles: – TitleFull: Resetting Prices: Estimating the Effect of Tuition Reset Policies on Institutional Finances and Enrollment. Type: main BibRelationships: HasContributorRelationships: – PersonEntity: Name: NameFull: Ward, James Dean – PersonEntity: Name: NameFull: Corral, Daniel IsPartOfRelationships: – BibEntity: Dates: – D: 01 M: 09 Text: Sep2023 Type: published Y: 2023 Identifiers: – Type: issn-print Value: 03610365 Numbering: – Type: volume Value: 64 – Type: issue Value: 6 Titles: – TitleFull: Research in Higher Education Type: main |
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