Recession May Force Changes in Tuition
Posted 23 Mar, 2009
Parents aren’t the only ones worried about tuition costs for the upcoming school year–private colleges are feeling the pinch, too. As the struggling economy continues to affect the college admissions process, many private schools are wondering how to cope with the problem of higher application volumes but lower enrollment numbers. They have also faced a trend of some continuing students not returning to school after winter or spring break due to their parents not being able to afford the costs any longer.
The answer, they feel, may lie in the bottom line.
A “Big Business” Attitude
As I’ve mentioned before, colleges are essentially big businesses–they need to fill their seats to keep their doors open. That means they need good prices, good income, steady enrollment, and good press!
Legislation has also had a big effect on how colleges do business. Part of the Higher Education Opportunity Act of 2008 created a list that tracks which colleges have the highest tuition increases each year (and no school wants to appear on that list!) Schools with endowments are also worried about the continued government scrutiny about how they spend those funds. A good portion of those funds are supposed to be used to help make college more affordable for their students. Colleges want to be sure they are always portrayed in the best light to be able to continue attracting a high caliber of student.
The “big business” attitude can be both a bane and a boon to the families of either students currently in or bound for college. On the one hand, it can mean high tuition prices in the best of times, and difficulty negotiating for the best value for your dollar. On the other hand, it also means that schools have to compete with each other to fill those seats–and that can be a very good thing for parents!
Big Changes in Tuition?
Increasingly more private colleges and universities are wondering how to keep students enrolling even, when times are tough. Many have decided to appeal to their prospective student’s pocketbooks by lowering or deferring tuition increases, or in the most radical cases, freezing or even decreasing tuition.
Most schools are still increasing their tuition to account for their own rising costs (a survey by the National Association of Independent Colleges and Universities shows that 70% of schools still plan to raise tuition), but many expect the increases to be the lowest they have been in many years. For example, the University of Pennsylvania has announced the lowest tuition increase in over 40 years , and Carnegie Mellon, which my son currently attends, announced the lowest increase since 1975.
All the best,
Deborah Fox
Deborah Fox is the founder of Fox College Funding®, a nationwide company that helps families find creative ways to reduce their college costs.
photo: http://www.sxc.hu/photo/1152005
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Parents aren’t the only ones worried about tuition costs for the upcoming school year–private colleges are feeling the pinch, too. As the struggling economy continues to affect the college admissions process, many private schools are wondering how to cope with the problem of higher application volumes but lower enrollment numbers. They have also faced a trend of some continuing students not returning to school after winter or spring break due to their parents not being able to afford the costs any longer.
The answer, they feel, may lie in the bottom line.
A “Big Business” Attitude
As I’ve mentioned before, colleges are essentially big businesses–they need to fill their seats to keep their doors open. That means they need good prices, good income, steady enrollment, and good press!
Legislation has also had a big effect on how colleges do business. Part of the Higher Education Opportunity Act of 2008 created a list that tracks which colleges have the highest tuition increases each year (and no school wants to appear on that list!) Schools with endowments are also worried about the continued government scrutiny about how they spend those funds. A good portion of those funds are supposed to be used to help make college more affordable for their students. Colleges want to be sure they are always portrayed in the best light to be able to continue attracting a high caliber of student.
The “big business” attitude can be both a bane and a boon to the families of either students currently in or bound for college. On the one hand, it can mean high tuition prices in the best of times, and difficulty negotiating for the best value for your dollar. On the other hand, it also means that schools have to compete with each other to fill those seats–and that can be a very good thing for parents!
Big Changes in Tuition?
Increasingly more private colleges and universities are wondering how to keep students enrolling even, when times are tough. Many have decided to appeal to their prospective student’s pocketbooks by lowering or deferring tuition increases, or in the most radical cases, freezing or even decreasing tuition.
Most schools are still increasing their tuition to account for their own rising costs (a survey by the National Association of Independent Colleges and Universities shows that 70% of schools still plan to raise tuition), but many expect the increases to be the lowest they have been in many years. For example, the University of Pennsylvania has announced the lowest tuition increase in over 40 years , and Carnegie Mellon, which my son currently attends, announced the lowest increase since 1975.
All the best,
Deborah Fox
Deborah Fox is the founder of Fox College Funding®, a nationwide company that helps families find creative ways to reduce their college costs.
photo: http://www.sxc.hu/photo/1152005
Subscribe in a reader
Subscribe by Email
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