Hanover Research SERVICES OVERVIEW Solutions for Manufacturing
Cost and Aid Strategies: How to Maximize Results for Your Institution
May 8th, 2013 2:00 EDT
Cost and Aid Strategies: How to Maximize Results for Your Institution
Questions: Please use the Q&A pod located at the bottom of your screen Audio: Participants can choose to use the microphone and speaker capabilities through their computer or phone. Please call into the telephone conference line if you’d like to use the audio through your phone. +(877) 273-4202; Access Code: 4705008 Audio problems: Please email [email protected] or call (434) 220-1687.
Recording: All webinar registrants will be emailed a link to access the recorded webinar and additional materials.
Introduction
Cost and Aid Strategies: How to Maximize Results for Your Institution
During today’s webinar, we will cover the following topics: A discussion of tools such as tools such as tuition cost sensitivity, net
cost sensitivity, and tuition discounting benchmarking Presenter: Dr. Harry Hellenbrand, California State University- Northridge Presenter: Mr. Game Quan, Claremont School of Theology Q&A
Outline
Cost and Aid Strategies: How to Maximize Results for Your Institution
Tuition elasticity Definition of tuition discounting The use of tuition discounting in higher education Advantages and disadvantages of tuition discounting Tools to use to develop a tuition discounting strategy
Introduction to Tuition Discounting and Other Aid Trends
Cost and Aid Strategies: How to Maximize Results for Your Institution
Tuition Elasticity Formula
Higher education tuition is relatively inelastic Importance for higher education institutions to measure tuition
elasticity correctly
Tuition Elasticity
Cost and Aid Strategies: How to Maximize Results for Your Institution
The Chronicle of Higher Education defines tuition discounting as: “The difference between what students are actually paying to attend an
institution and its sticker price.”
Definition of Tuition Discounting
Cost and Aid Strategies: How to Maximize Results for Your Institution
Tuition freezes Tuition reduction Tuition elimination Fixed tuition guarantee Replacing loans with grants Public university price matching Fast-track degree programs Job guarantee Four year graduation guarantee
Common Aid Strategies in Practice
Cost and Aid Strategies: How to Maximize Results for Your Institution
Allows private colleges to address student need Increases student diversity Increases enrollment
Advantages of Tuition Discounting
Cost and Aid Strategies: How to Maximize Results for Your Institution
Reduces student accessibility and affordability Shifts funds from instructional and student services Increases financial risk exposure for smaller institutions
Consequences of Tuition Discounting
Cost and Aid Strategies: How to Maximize Results for Your Institution
Some institutions are choosing to lower both the discount rate they provide to students and the “sticker price” for full tuition and fees.
Though the overall revenues should remain the same, the primary issue of concern in this scenario is whether an institution which lowers its tuition will be perceived as less prestigious or of lower quality by prospective students
Comparing Tuition Cutting to Tuition Discounting
Cost and Aid Strategies: How to Maximize Results for Your Institution
Determining when to lower the sticker price The institution needs to be significantly under enrollment goals Will work best when most students are receiving institutional grant aid
at or in excess of the amount of the planned tuition discount When reducing aid for a specific sub-population, the subpopulation
should be a large group though your institution currently enrolls only a small “share” of that population
Determine price elasticity
Tools to Use to Develop a Tuition Discounting Strategy
Cost and Aid Strategies: How to Maximize Results for Your Institution
Dr. Harry Hellenbrand, Provost and Vice President for Academic Affairs at California State University-Northridge
Presenter
Cost and Aid Strategies: How to Maximize Results for Your Institution
Mr. Game Quan, Vice President For Business Affairs And Chief Financial Officer at Claremont School of Theology
Presenter
Cost and Aid Strategies: How to Maximize Results for Your Institution
A Failed Proposal to Reduce Tuition Rates
Gamward C. Quan Vice President for Business Affairs
Chief Financial Officer Claremont School of Theology
May 2013
Cost and Aid Strategies: How to Maximize Results for Your Institution
President Obama in the 2012 State of the Union Address Called Out the Crisis in Student Costs in Higher Education High Tuition Costs Rising Student Debt Economic Return (Jobs)
Shift of Federal Student Support to Undergraduate Education Total Student Debt Exceeds Total Credit Card Debt
Current National Situation
Cost and Aid Strategies: How to Maximize Results for Your Institution
Emphasis on Full-Time, Bricks-and-Mortar Programs Tuition Rate Increases Have Outpaced the Growth of the Scholarship
Endowment High Tuition + High Discount (Scholarships) is not Manageable without a
Paying Student Population This is an Unsustainable Model
The CST Situation
Cost and Aid Strategies: How to Maximize Results for Your Institution
Higher Levels of Undergraduate Student Debt Already in Default on Prior Undergraduate and Graduate Student Debt Students Borrow More Than Direct Education Cost to Cover Living
Expenses Bricks-and-Mortar Programs Require Relocation Full-Time Programs Limit Employment Opportunities
Crisis for Students
Cost and Aid Strategies: How to Maximize Results for Your Institution
Eliminate the Artifice of Tuition Discounting Prospective Students Will Immediately Understand the Cost of
Attending CST (no waiting for scholarship offer to determine “real” cost) Reduces Student Borrowing Allows Scholarship Cash to Buy More Tuition Units Increases Transparency for the Student
(Failed) Proposal: Reduce the Gross Tuition Rate
Cost and Aid Strategies: How to Maximize Results for Your Institution
Students Expect to Receive Scholarships Scholarships are Honors They Earn Expect Custom, Flexible Pricing Based on Individual Needs and
Requirements Donors Like to Give Scholarships Tuition Price is an Indicator of Quality The Few Schools that Did Attempt Gross Tuition Reduction Abandoned
Their Experiments within a Very Few Years due to Competition
The Reality
Cost and Aid Strategies: How to Maximize Results for Your Institution
It is Evident that Tomorrow’s Students Will Need to Work While in School Support a Paying Student Population
More Part-Time Students More Distance Students More Online Students Non-Traditional Schedules
Communication with Fundraising Staff that Unrestricted Gifts are Preferred Over Scholarship Gifts Due to Our 35% Tuition Discounting Cap, Additional Scholarship Dollars
Cannot be Spent Without More Students Scholarships are Often Restricted, Limiting Their Availability and
Effectiveness in Forming the Incoming Class to Current Programs
Actions
Cost and Aid Strategies: How to Maximize Results for Your Institution
Q&A
Testing Adobe Connect with Hanover Staff Thank You
Thank you for participating in this Hanover Research webinar. A link to the recording of this webinar will be emailed to you.
Top Related