The Corner That State Universities Have Backed
Themselves Into
For schools to do the right thing would be financial
suicide.
Smith notes:
“College tuition has increased over the years, but not nearly as much as people think. For example, at private nonprofit institutions, which includes elite schools, net tuition — the price students actually pay — is about the same as it was at the turn of the century.
Instead of raising prices overall, these universities have raised the price they charge wealthy students, while using need-based financial aid to hold down the price paid by students of modest means.
But this gives universities an obvious incentive to admit more students from rich families. Under the need-based financial-aid system, a rich student is a profit center while a poor student represents a financial loss”.
Covid-19 will be painful for universities, but also bring change
Covid-19 will be painful for universities, but also bring change
The COVID-19 shock may fundamentally alter the economics of private colleges