It’s been quite a week here at Roger Williams University. We have been more than a little curious regarding the impact that Affordable Excellence would have on the retention of our current students, and on the enrollment of new students who will be entering this coming fall. Given the number of private colleges in the Northeast, coupled with a continuing decline in the number of high school graduates in New England, competition for new students in our region has never been more fierce.
A recent article in The Wall Street Journal (“Colleges Cut Prices by Providing More Financial Aid,” May 6, 2013) reports that the average discount rate (the amount of prospective tuition revenue that is returned to students as financial aid) rose to 45 percent for the 2012-13 academic year, the highest ever – and all indications are that the discount rate for the coming academic year will be even higher. When 45 percent of tuition dollars are used not for actual instruction, but simply to lure people through the front door, colleges are hard pressed to offer a quality educational experience. They try to stay ahead of their competitors by significantly raising the sticker prices for tuition each year, in order to generate new dollars that can be given as aid. Of course, their competitors do exactly the same thing. The consequence is that the published prices make college seem increasingly unaffordable.