Colleges are getting the message that the skyrocketing cost of tuition hikes over the past 20-30 years are not sustainable. Students, and their families, are choosing colleges with lower tuition rates, and colleges are hearing this loud and clear. Several private colleges have cut their tuition up to 50% for 2021.
While it might seem that COVID-19 may be the cause for this sudden trend of reducing tuition, these talks were being discussed before the pandemic. When college tuition can cost upwards of $70,000 per year, many families are opting for more affordable options that allow them to plan for retirement, healthcare, and educating all of their children.
This is good news for students and families as they consider college options.
Colleges are getting the message that the skyrocketing cost of tuition hikes over the past 20-30 years are not sustainable. Students, and their families, are choosing colleges with lower tuition rates, and colleges are hearing this loud and clear. Several private colleges have cut their tuition up to 50% for 2021.
While it might seem that COVID-19 may be the cause for this sudden trend of reducing tuition, these talks were being discussed before the pandemic. When college tuition can cost upwards of $70,000 per year, many families are opting for more affordable options that allow them to plan for retirement, healthcare, and educating all of their children.
This is good news for students and families as they consider college options.
Who would have believed that some colleges are desperately seeking students when you hear about how Stanford has a 4.8% acceptance rate, which is lower than Harvard’s 5.4%? Yup! There are over 2,800 public colleges, and over 1,200 private colleges in the US. Only the top colleges are ridiculously selective. Eight private colleges just announced that they are slashing tuition for next fall (2018-2019). Reducing college tuition is called “tuition reset.”
Although you might think that this tuition reset attracts and helps financially struggling families, it actually does the opposite. Students who would be entitled to financial aid (grant and loans), only receive less financial aid so the actual amount they pay is about the same. ARGH. And guess what? The wealthy students are the only ones who actually pay less with tuition reset. Because these students wouldn’t get financial aid anyway, the discounted tuition rate means that they pay less for college.
So tuition reset is really just a marketing ploy that benefits the wealthy. It moves the college into the limelight bringing more applicants; and to make up for the decrease in tuition revenues, many colleges are increasing their enrollment. In my book, that may lead to lower academic standards with increased class sizes and fewer professors.
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