Between 2006 and 2017, private colleges, on average, increased their tuition by 29% while their average net price increased only 6% over this period (College Board Trends). Further compounding the price issues for private colleges is that the average income of students at public four-year institutions is higher than it is at private colleges indicating that many middle-income families choose public colleges where they know that they can afford the tuition. A study by Longmire Associates found that 60% of students and their parents are unaware that private colleges discount their price. In addition, at a significant number of private colleges and universities, there are no students who pay the full price. The impetus to change pricing strategy at private colleges has been further motivated by changes that public colleges are making in their strategies to attract more out-of-state students.

Source: Forbes September 29, 2018 12:33 UTC