Tuition Discounting: Results From the 2023 NACUBO Tuition Discounting Study

Recorded On: 10/24/2024

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Tuition discounting levels at private nonprofit colleges and universities reached another record high in academic year 2023–24, with average discount rates exceeding 50% for both first-time, first-year students and for continuing undergraduates. While discount rates rose at most schools, net tuition revenue fell sharply in inflation-adjusted value.

However, enrollment and revenue strategies at some schools proved to be successful in spite of increasing costs and other factors. It is now more important than ever for chief business officers, chief enrollment officers, and other campus administrators to evaluate their discounting and pricing strategies and the effects they have on net tuition revenue and college affordability. Additionally, in light of the Supreme Court’s decision on race-based affirmative action and the FAFSA processing troubles, campus leaders will need even more guidance on how to use financial aid strategies that meet enrollment, diversity, and net revenue goals.

This webinar provides an overview of the changes in average discounting rates during the 2022–23 and 2023–24 academic years and provides more details about the pricing and enrollment strategies private colleges have considered to deal rising student financial need and other factors. The panelists will discuss the complex factors that go into new tuition discounting, enrollment, and financial aid strategies, and provide their early assessment of how strategies might need to change due to the Supreme Court’s actions.

Learning Objectives

After this webinar, you will be able to—

Review and discuss the most recent trend data on tuition discounting and net tuition revenue
Evaluate the strategies chief business officers, chief enrollment officers, trustees, and other campus leaders are considering to solve the new challenges related changes in enrollment, financial aid expenses, and potential new legal requirements related to diversity in admissions policies and practices
Understand the relationship between the discount rate, enrollment, and net tuition revenue and ways to bring balance to each component

Dawn Alston

CFO, Senior Vice President for Business and Financial Affairs

Spelman College

Dawn Alston is the CFO and senior vice president for business and financial affairs at Spelman College. During her 19-year tenure in the division of business and financial affairs, she has been instrumental in (1) ensuring a history of balanced budgets, (2) developing and implementing a formalized fiscal grant compliance program, and (3) guiding the college’s operating budget development process. Alston began her career as a scientist and adjunct faculty member, but later evolved into a research administrator and ultimately a collegiate business officer. Before working at Spelman College, she worked as a compliance officer for the Department of Defense and an adjunct biology instructor at Wofford College and Tri-County Technical College.

Alston serves on the NACUBO board, is the SACUBO small institutions committee chair, and a member of the National Council of University Research Administrator (NCURA) and the Society of Research Administrators (SRA). Alston holds a BS in biology from Hampton University, a MS in environmental toxicology from Clemson University, and an MBA from Louisiana State University. She is also a certified research administrator.

Chris Gardner

Chief Financial Officer

Wofford College

Chris Gardner currently serves as the chief financial officer at Wofford College in Spartanburg, SC, a position he has held since 2018. In this role, Gardner oversees accounting and finance, budget and planning, investment, facilities and information technology services. He came to Wofford in September 2013 as associate vice president for finance and controller. During his time at Wofford, he served on the college’s strategic planning implementation team prior to becoming CFO. He currently serves as chair of the SACUBO Investment Committee and as an at-large representative to the SACUBO board. Prior to joining Wofford, he was manager of financial and statistic reporting for AVX Corp. in Fountain Inn, S.C., and audit manager for KPMG LLP in Greenville, S.C. He also had been senior audit associate for KPMG Global Services in Montvale, New Jersey.

Gardner, a certified public accountant, received a bachelor's of science degree in accountancy from Miami University in Oxford, Ohio. He is a member of the American Institute of Certified Public Accountants.

Kathleen Masterson

Assistant Director, Research and Policy Analysis

NACUBO

Kathleen Masterson is assistant director of research and policy analysis at NACUBO, where she helps manage and analyze the organization’s various surveys and research projects. Prior to joining NACUBO, Masterson evaluated state education funding at the Center on Budget and Policy Priorities. She has a master’s degree in public and international affairs from the University of Pittsburgh and earned her bachelor’s degree from The College of William and Mary.

Ken Redd (Moderator)

Senior Director, Research and Policy Analysis

NACUBO

Kenneth E. Redd is senior director, research and policy analysis for NACUBO. At NACUBO, Redd directs the annual NACUBO-TIAA Study of Endowments, the NACUBO Tuition Discounting Study, and other studies on higher education finance issues.

In addition to his work at NACUBO, Redd also serves on the board of trustees for the Meadville Lombard School of Theology in Chicago, IL, and is a member of the board of directors for the Unitarian Universalist Common Endowment Fund (UUCEF) and the Association for the Study of Higher Education (ASHE).

Redd has a master’s degree in public affairs from the Hubert H. Humphrey School of Public Affairs, University of Minnesota.