Bold change: Resetting a University’s Pricing and Financial Aid Model
The institution where I work, Ashland University, made a major announcement last week that our tuition and financial aid model for full-time undergraduate students was being “reset.” The change, which took extensive amounts of research and planning, will reduce tuition in the fall of 2014 by more than $10,000 to $18,908 from the projected tuition rate of $30,064. Although we are still offering institutionally funded financial aid, we also reduced our financial aid budget in order to fully implement a lower cost and lower discount model.
So why did we do it?
For starters, we believe that the current pricing and financial aid model was strained. As we projected the direct costs for our students to the year 2021 (which is only seven years away), our institution would have cost over $50,000 a year for tuition, fees, room, and board if we had continued to increase tuition by 4% a year. The reality of this projection was not only uncomfortable for the university community, but also a point of concern with our board of trustees.
For more information on this, I can be contacted at:
Dr. Scott Van Loo, Vice President of Enrollment Management and Marketing