Tuition discounts reach record high (again) as colleges diversify revenue

The average tuition discount rate for first-time, full-time freshmen at private, nonprofit four-year institutions is expected to reach a record high of 52.2% in the 2018-19 academic year, according to a new survey of more than 400 colleges and universities by the National Association of College and University Business Officers (NACUBO).The rate, which reflects "institutional grant dollars as a percentage of gross tuition and fee revenue," is projected at 46.3% for all undergraduates during the current academic year. The 2018-19 figures mark an increase from 2017-18, which saw a 50.5% discount rate for first-time, full-time freshmen and 44.6% for all undergraduates.Growing discounts likely contributed to an inflation-adjusted 3.6% drop in revenue from first-time freshmen in 2017-18, according to the report. Net tuition revenue from all undergraduates was flat that year and is expected to be up 1.6% in 2018-19. Continued discounting is a response to a very public and prolonged discussion about the cost of college and the extent of student debt. Complicating the conversation for institutions is declining enrollment and demographic data that suggests the pool of traditional prospects will shrink over the next decade.