Experimenting with Price Cuts in Higher Education

I’ve long been an advocate of cutting tuition and getting away from the wrong-headed “luxury-price signals quality product” logic so common in lower and middle tier higher education. There are many reasons not to “just do it,” but more than a few things in favor of the idea should at least motivate serious discussion:
  • honesty in pricing might better reflect institutional values;
  • some prospective students never consider a school, knowing sticker price is out of their reach; the current system discriminates against such “humble realists”;
  • institutions should grapple with the fact that full-pay families might not be willing to participate in the institution’s redistribution scheme if they thought (knew) about it;
  • it is not clear there is any dis-interested, scientifically valid research on the implications;
  • revenue models rarely take into account the cost of administering Byzantine financial aid schemes;
  • some institutions are unfairly labeled “elitist” based on sticker price alienating people to whom their mission otherwise would appeal;
  • tuition discounting is one of many opacity practices that undermine administrators’, board members’, and faculty members’ capacity to effectively monitor the economics of their institutions.

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Author: Dan Ryan

I'm currently an Academic Program Director at MinervaProject.com. I've been a professor at University of Toronto, University of Southern California, and Mills College teaching things like human centered design, computational thinking, modeling for policy sciences, and social theory. I'm driven by the desire to figure out how to teach twice as many twice as well twice as easily.

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