Getting Out of Discount Game, Small Colleges Lower the Price

Paying for College
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<p>Many institutions that charge high tuition but also offer steep discounts are rethinking the allure of that model.
<a href="http://www.nytimes.com/2013/12/26/education/getting-out-of-discount-game-small-colleges-lower-the-price.html?pagewanted=all%5B/url%5D"&gt;http://www.nytimes.com/2013/12/26/education/getting-out-of-discount-game-small-colleges-lower-the-price.html?pagewanted=all&lt;/a&gt;&lt;/p>

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<p>Memorable quotes

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<p>Everyone doesn’t get the same discount. The kids that have the better record usually get the better discount. It’s nice that in this case (sometimes) hard work gets rewarded.</p>

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<p>Perhaps the requirement of net price calculators may be having an effect. Schools with good need-based financial aid or guaranteed-for-stats merit scholarships can show those in their net price calculator results. But if the school has generous but holistically determined merit scholarships, its net price calculator may realistically only be able to show a higher net price, deterring applicants who may be more likely to apply to schools with lower net prices.</p>

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<p>^^^</p>

<p>UCB may be very right. If the NPCs aren’t showing the formerly given discounts, then they may have been losing students even before applying.</p>

<p>I think the best of both worlds is to drop the phony prices, yet still give merit for top applicants (and show that on the NPC as well by asking for stats). High stats students/parents are still expecting merit from the less-than-top schools.</p>

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<p>This is something that I have found VERY frustrating. I have found it very difficult, actually, near impossible to predict the true cost of college due to high income and high test scores. Unfortunately, The schools that are mentioned in the article aren’t exactly national universities or top LAC’s. I remember GM tried the “true sticker price” approach with its Saturn subsidiary. Alas, Saturn is no more. I predict that this “trend” is self limiting. Most schools still have a few people who are paying full freight.</p>

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<p>It’s true these are more regional colleges which are more likely trying to pull high payers from the local publics or state flagships. They are not trying to compete with the national or more prestigious LACs. We’ll have to see which way the market (families applying) turns in the long run.</p>