How do you set tuition? How should you?

I can read your mind. You probably take last year’s tuition, look at how much your expenses will increase, and raise tuition by that amount. Problem solved, right? Then why doesn’t it work? It doesn’t work because the tuition colleges set carries almost no resemblance to what students actually pay. Of course, state and federal […]

Confused about discount rates? Me too.

Nothing is so discussed–and perhaps so misunderstood–as college discount rates. And my opinion about the meaning of discount rates is changing, to boot. You probably know that discount rates are calculated by dividing unfunded institutional aid by gross tuition revenue. So if you charge $100M in gross tuition and offer $40M in aid, your discount […]