Oct 3, 2019, 2:13 PM
(from the Philadelphia Inquirer) In recent years, a growing number of colleges and some independent schools have addressed soaring educational prices by "resetting" tuition. The concept is simple: Reduce tuition significantly, and make up the lost revenue by growing enrollment and decreasing financial aid costs. The reset solution is a deliberate shift away from the high-cost-high-aid model that has most colleges offering deep discounts through financial aid on high tuition rates. According to a 2018 Sallie Mae report, 65% of students eliminate colleges in their selection process based on published tuition price without any further research.
Rosemont College, a small liberal arts college in Bryn Mawr, Pennsylvania, reset its tuition with great success in 2015. After cutting tuition by 43%, enrollment increased 64%. The more transparent pricing model helped the school reach more middle-income families who previously thought they couldn’t afford tuition. La Salle University will implement a similar reset this year.
The Kiski School recently announced a tuition reset of 21%, following on the heels of a reset at Montgomery School. "At our new tuition, we anticipate a modest increase in enrollment, which will offset some of the income forfeited by reducing our price," said Kiski's Headmaster Christopher Brueningsen. "But Kiski’s reset really represents a move toward a philanthropy-centered approach with plans to raise money for endowed and operational scholarships."
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