Introduction
Tuition discounting is the process through which education institutions compensates its stipulated tuition fee with institutional funding help for enrolling students (AGB, n.d). The outcome is the discount rates, the ratio of the sum of institutional grant aid compared to gross tuition incomes at an institution (AGB, n.d). In majority public and private not-for-profit colleges and universities, even the students who pay their full tuition are supported financially.
Some institutions depend heavily on discounting such that when they raise their tuition, they do not make profits. Tuition discounting was meant to allow the system to balance students' abilities to finance their tuition with a willingness to pay while still achieving
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University and college officials try to use their discounts well. With the hope to raise net tuition revenue, they use their finances where it will attract most students especially students who are most likely to propel the mission and objectives of the institution (Davis, 2003). A good result of enrollment management and tuition discounting is that some colleges and universities have enhanced their registration of students', and thus their financial positions are better. However, tuition discounting works for some colleges only (Davis, 2003). Although tuition discounting is sometimes successful in assisting some colleges and universities shape the enrollment of students, it does not always generate the needed enrollment effects (Davis, 2003). It also does not always increase institutional income (Davis, 2003). Besides, the practice by individual colleges, when merged across all institutions has brought about disturbing outcomes for lower-income students (Davis, …show more content…
It was in comparison to the rates for other students at both private and public institutions (Davis, 2003). In private institutions, the dollar increases were more for affluent students than for lower-income students. These disparities occurred primarily because grants were directed to students from well- off families (Davis, 2003). Hence, it seems that using funds to discount tuition for wealthier students threatens lower-income students' financial access to university and college (Davis, 2003). The practice makes tuition fees more expensive for lower-income students which beats the purpose of financial grants in the first place. It also works more to limit their choices of which university or college to attend. A reason that average grant assistance to middle and upper-income students may have grown is that their financial needs are
College is marketed towards students as an essential part of building a successful future. The United States “sells college” to those who are willing to buy into the business (Lee 671). With the massive amounts of student debts acquired every year, and the rising costs of
Since the 1980’s the cost of attending colleges have increased rapidly. Rising costs of for Medicare, highways and prisons have caused many states to reduce a percentage of their budget for higher education. Colleges and Universities currently face a very serious challenge:
Tuition helps to pay for all of the services and programs of a University. However, some universities put more money into one or two programs or colleges to make them stronger areas of study within the university. Not all colleges or departments throughout a university have the same quality of classes or facilities. For example, Iowa State University invests a great deal of their money in the engineering and agricultural programs and so increases the quality of those programs. This is how students choose which university is best for them. A student bases his decision on what college to attend by looking at what programs a particular universit...
The idea of freedom and equal opportunity that America was built on has sadly been lost and replaced with a system of quality education only being accessible by the wealthy. In-state college tuition should be free for all students meeting admission requirements, allowing students from the full spectrum of economic backgrounds to have the same opportunity to receive the same education. The incidence of poverty in the U.S. is directly linked to educational level. When a college degree is earned, income levels rise (College Board). The best use of federal government anti-poverty funds is not another welfare or assistance program; it is to make college education affordable for everyone.
Andrew Hacker and Claudia Dreifus report in their essay “Are Colleges Worth the Price of Admission?” what is expected from universities in exchange of their high costs. Currently, the price of education has duplicated its cost in comparison to the last generation (Hacker and Dreifus 179). Making a huge investment and getting poor results are the reasons what make parents and students hesitate before choosing a college. Hacker and Dreifus emphasize that colleges that are doing well their job share factors that make worth paying high tuition fees. These factors include: close relationships between professors and students, an adequate use of technology, and access to scholarships or part time jobs to make education affordable. Considering the
As The “Progress of Education Reform” suggests, tuition discounting is major contributor to the rising cost of college in the sense that while it provides a tuition discount to the one particular student receiving the grant or scholarship it places a heavier burden on the majority demographic that attends the university without such discounting. (The Progress of Education Reform” 1). In contrast to popular opinion, scholarships and grants which are normally regarded as blessings are ironically a contributing factor to rising tuition prices. Basically, the universities have to make up for the money they lost by awarding the scholarships so the majority of the student population who did not qualify feel it in their pocketbooks. A final cause of this ludicrous tuition spike is the shift in university budgets to cater to the administration departments of the schools. Jobs in this department are non-teaching jobs that provide student services ranging from student safety to counseling and wellness programs. These jobs are definitely
College is one of the most fundamental institutions in our modern world. It is a place where most of our future politicians, doctors, scientists, and leaders are made. Though, it seems that the price tag that comes with a college education is something that is too hefty for some students. Countless debates go on about whether the price of college should be abolished or whether the cost still is on the students to pay for.
Rep. Dick Zimmer predicts that at the current rate of rising college costs, by the year 2000 the average price tag for attending a four-year public university will be over $50,000 and the average four-year cost at a private university will exceed $104,000. (College costs continue to climb, 14) During the years between 1970 and 1994, the consumer price index increased just under four times, but the average cost of tuition, room, and board at four-year public colleges went up nearly five times, and private college costs rose almost seven times, from just under $3,000 to over $20,000. According to the U.S. News Cost of College Index, the average middle-class worker must now labor 95 days to pay for a year at an average private college. Two decades ago, it took slightly more than half as long to pay for the same education. (Elfin, 90) By 1994, the average four-year cost at a private college was over three times the typical family's annual income. (Reiland, 59) However, The College Board recently announced that US college tuition and fees for 1996-97 increased at nearly the same rate as they had in the previous year, adding that the more than $50...
Anyone can see that over the past number of years, college tuition and overall costs to attend a university have skyrocketed and is at an all-time high. Although, most people are not too sure why this has happened. According to authors Robert B. Archibald and David H. Feldman in the article, “Explaining Increases in Higher Education Costs,” there are two opposing arguments as to why this has occurred over the years. These include the Cost Disease argument, which was William Baumol and William Bowen’s view of the rising cost of education and the other was the Revenue Theory of Costs, which was Howard Bowen’s view of the topic. There are multiple goals throughout this article. A couple of the goals include explaining the two competing arguments
The main reasons that tuition should be lowered are that students need an easier and a cheaper access to higher education, so that children who are born into poverty have a chance to make a better life for themselves, and so that the amount of student debt in America is decreased. Currently, students do not have a simple or inexpensive access to higher education due to the increasing cost of tuition and the decreasing amount of scholarships being awarded. Aside from tuition, state colleges fund academics mostly by state appropriations.
According to the Bureau of Labor Statistics, college tuition and relevant fees have increased by 893 percent (“College costs and the CPI”). 893 percent is a very daunting percentage considering that it has surpassed the rise in the costs of Medicare, food, and housing. As America is trying to pull out of a recession, many students are looking for higher education so they can attain a gratified job. However, their vision is being stained by the dreadful rise in college costs. College tuition is rising beyond inflation. Such an immense rise in tuition has many serious implications for students; for example, fewer students are attending private colleges, fewer students are staying enrolled in college, and fewer students are working in the fields in which they majored in.
In Paying the Price, author Sara Goldrick- Rab discusses in chapter two the realization of costs and prices of a college education, It discusses the discounts as well in public colleges using the financial aid system. “Going to college and then discover that it ends up costing a lot more than you thought” (Goldrick-Rab, 2016 p.45).
With the rapid growth of college tuition, it has become an important issue in higher education. College Tuition is simply defined as the charge or fee for instruction, at a private school or a college or a university. Most people agree today that college tuition is too high or that it needs to be completely dismissed. There are some however, that may disagree with the claim about college tuition and state that college tuition is necessary for college growth, and it’s primary purpose is to pay for college expenses to support the institution financially. Research shows that college tuition is too high and that debt has become a standard in America after attending post-secondary school.
Public colleges must be affordable to anyone who wishes to attend. If colleges lack to provide this to students, it can affect dropouts, a student’s ability focus, and cause stress. The problem of lack of funding is that colleges have insufficient funds. Therefore, the best possible solution for the problem of lack of funding would be increasing and collecting more funds from state taxes. Collecting funds from the state’s taxes is an effective solution because students get more academic support programs, which decreases dropouts.
In 2009, an experiment by MDRC was processed in two community colleges in Louisiana State for low-income students. One group of students was offered $1,000 each semester if they could attend college at least half time, and maintain an average above a C while another group did not receive the supplement. Paid participants were 30% more likely to register for a second semester than students who were not offered the supplemental financial aid. These students also earned more credits and were more likely to maintain an above C average. This result fully shows that cash incentives help students.