Various sources had this story today. The following is from Inside Higher Ed.
And the WSJ podcast on the topic.
I dont believe it at all. Poor, UR, minority, maybe, but upper middle class caucasian, asian, or indian, purse strings are tight for all but the best.
Local girl from Jamaica, decent stats, but from Jamaica full scholarship Vanderbilt total bullcrap.
No need to devalue her achievements just because you’re annoyed she got a big scholarship.
Not sure what you are responding to hannuhylu. That was not in the Higher Ed article.
Is this the breaking point? Are families realizing that going to the small, expensive school is not worth the money compared to an in-state public?
^^I hope so. 70k a year for an undergraduate degree is crazy.
I don’t think it will be a breaking point. I think it will be gradual. And it is something that has been happening for several years now. I see more and more of the top kids from top suburban schools going to in-state publics (or where merit dollars are high). Top schools will be fine. And to clarify for folks with a certain warped mindset on this site, when I say “top” I am not talking about the top 5 or 10 schools (under whatever ranking regime fits your fancy). Top 25 or even 50 schools will continue to do fine.
How about they freeze tuition instead of this ridiculous game of increasing by 3-5% then giving it back in discounts?
In my kid’s private school, the tippity top kids without a URM or sports hook were shut out of the top 15 National Universities (even the really wealthy ones), with the exception of 1 unhooked kid with excellent stats, an interesting EC and great recommendations. Those top kids chose other schools in the top 40 level (where they were accepted), and the upper middle class kids that are not super wealthy picked the schools that offered merit. Including the unhooked kid mentioned above who rejected the Ivy for a top 40 school that offered substantial merit.
Many of kids with small (unique, but not record setting) sports hooks that were full pay (wealthy) but not top students ended up at Bowdoin, Middlebury, Hamilton and similar schools. These kids and their parents wallets need to pay for the discounting of the kids these LACs are trying to lure in for economic and culturally diversity purposes.
There was an article recently posted on CC that broke down the costs at the schools mentioned above (Bowdoin, Middlebury, Hamilton and similar schools). It estimated that 25 percent of a full pays tuition goes to support the need based discounts given to other students, so out of $50,000 tuition, $12,500 of that goes to pay for the kids on Pell Grants.
How about they freeze tuition instead of this ridiculous game of increasing by 3-5% then giving it back in discounts?
Schools that have tried that have not really seen success. People these days seem to focus on the discount. I see it in my own work, at the grad level. I have to prepare spreadsheets to help people see that the big discount they are getting on School B is nice and all, but our school still costs less … but if they don’t get a scholarship from us, they still choose School B. I don’t get it.
I forgot to mention that most of those “average good students” (not even average excellent students) that were accepted to these higher tier LACs applied ED and checked the “not applying for FA box”
My husband keeps seeing articles like this and thinks most private schools discount now. I have to keep reminding him that our EFC is above 90,000 and these articles do not apply to us! If we want to spend less, our kids need to be focusing on schools that give merit money. If we want to be cost-conscious, our kids will have to have lists crafted to that goal. No Carleton, Middlebury, etc. if we want to spend less on undergrad. I think articles like these just confuse parents sometimes.
“Top schools will be fine. And to clarify for folks with a certain warped mindset on this site, when I say “top” I am not talking about the top 5 or 10 schools (under whatever ranking regime fits your fancy). Top 25 or even 50 schools will continue to do fine.”
There aren’t more students choosing the better state flagships. There can’t be, because they are all full. They can’t take any more students. With budget cuts they are taking more OS and International students to pay the bills. Especially in more employable majors. (Eng and business).
The Ivies know that schools in the 15-50 range poach their students with scholarships, but they have many replacements.
Discounts are up because prices are up. As long as discounts are up less than tuition, the school is money ahead. Price hikes are really a way to get wealthier students to pay more toward funding for lower income students.
I didn’t say more students were choosing the better state flagships. I said more top students are choosing state flagships. Which means its becoming tougher for non-top students to get in. So they are moving down chain. There are highly rated public schools with increasing numbers of graduating students who have no shot at admission to their state flagship.
And we are talking with broad strokes here. Not all state flagships are equal. Some have funding problems. Others less so. Some are increasing the number of OOS kids (with high stats) to increase their profiles/rankings. They often are giving those kids in-state tuition so there is no revenue benefit. Others are looking for additional revenue. And for a lot of colleges its a mix.
True but the point of the thread (and many others on this site) are increasing numbers of the “wealthy” students are electing not to pay more for funding lower income students. Am I getting a $60k/year education if a portion of my tuition is going to fund tuition for kids who are not paying? Less of an issue if its a $5k subsidy. But as it increases, more people find the answer is no.
“but if they don’t get a scholarship from us, they still choose School B. I don’t get it.”
Sadly, I have to think this about bragging/justifying the choice to friends and family. There isn’t any rational reason for it.
No doubt there is a huge appeal for a discount. Look different pricing for cars. One car has $19k sticker and is selling for $19k. Put a $21k sticker on the very same car and sell it for $20k and people will think they are getting a deal when they are really paying for more it.
My wife has a similar issue with free breakfasts at hotels. You can always sucker her in with a “free” breakfast. 
@saillakeerie
“I didn’t say more students were choosing the better state flagships. I said more top students are choosing state flagships. Which means its becoming tougher for non-top students to get in. So they are moving down chain. There are highly rated public schools with increasing numbers of graduating students who have no shot at admission to” This is so true at our top state flagships
JC Penney tried removing sales/coupons awhile back and very quickly retreated. No one wanted a deal that just looked like a price, even if it was lower than what they’d get with a sale.
Kohl’s entire business model is discounting overpriced stuff.
I thought the article was interesting.
@saillakeerie wrote
Disney has a similar sucker’s bet with “Free Dining”. It’s not really free, people.
So is “free dining” the next idea for colleges?
Room and board scholarships are taxable so free dining isn’t the way to go (at least unless you are also giving full tuition scholarships).