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Monday, January, 17, 2011

Tuition: Setting Price in the New Economic Climate

Subtitled, "Considerations beyond the institution’s competitive market position," this article from University Business magazine looks at a number of important considerations to be made when planning to raise or lower tuition, and in communicating such changes to students and their families. It includes links to useful resources, data sources, and calculators.

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Whatever the institution’s sticker price, messages about affordability need to be sent early and often to prospective students and their parents. Even at low-cost institutions, some portion of the prospect pool will find the charge above their means, so this advice applies to both public and private institutions. And although every institution will soon offer a net price calculator, most calculators will require families to provide an extensive amount of information to get the estimate.

Consequently, it is not clear how many families will actually be willing to go through the process for every institution they are considering. Offering simple messages (e.g., an income profile of the class showing that students from all backgrounds attend or scholarship programs with clear eligibility criteria and award amounts) to encourage families to complete the aid application process will still be important.

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