In today’s environment, one of the most pressing challenges for private colleges is finding the optimal balance between institutional prices and financial aid award amounts. The 2011 Discounting Report sheds light on this dynamic area.
The study is based on a sizable sample of 139 private colleges across the U.S. that partnered with Noel-Levitz during the 2009-2010 academic year to strategically manage their financial aid awards and the resulting enrollments and discount rates in fall 2010. The study documents the increased financial pressure that private colleges are experiencing as students with greater financial need are enrolling in greater numbers while students with greater capacity to pay are enrolling in smaller numbers.
The study also shows that private colleges that partnered with Noel-Levitz last school year to strategically manage their financial aid were able to increase enrollments while also securing sufficient funding to support the fiscal health of the institution. In addition, these colleges directed an average of 76.6 percent of their institutionally-funded merit aid/scholarship awards to meet financial need.
