- It enables them to enroll a certain number of lackluster, but well-funded, students.
- It enables them to scoop up a larger share of the easy-money student loan dollars.
- It enables them to pose as the generous benefactor of those receiving deep tuition discounts, even though it is really just a shell game.
- It gratifies their egos.
Discounting the Bottom Line - Kevin Kiley
Discounting is part of a tug-of-war that colleges and universities play with their enrollment numbers and bottom lines. They place their sticker price beyond the reach of many potential students but make up the difference between that price and what a student can or will pay through institutional grants and scholarships. Proponents have argued that there are some psychological benefits to having a high sticker price, such as the perception of quality, and high discounting, such as the value a student perceives when he is offered a large package.HIGHER EDUCATION BUBBLE UPDATE - Glenn Reynolds
On Path To Riches, No Sign Of Fluffy Majors: “Exactly what an English major makes in a lifetime has never been clear, and some defenders of the humanities have said that their students are endowed with ‘critical thinking’ and other skills that could enable them to catch up to other students in earnings. Turns out, on average, they were wrong. Over a lifetime, the earnings of workers who have majored in engineering, computer science or business are as much as 50 percent higher than the earnings of those who major in the humanities, the arts, education and psychology, according to an analysis by researchers at Georgetown University’s Center on Education and the Workforce.”And lots more there.
