Quite common is the more stealth form of price competition that occurs when colleges set a high and continually rising sticker price, but then discount that price with “scholarships” that have grown increasingly large. But now, more and more colleges are beginning real sticker price competition. Suppose a school charges out-of-state students $12,000 and in-state students $8,000 annually. After the price cut for out-of-state students, it must enroll 1,500 of those students to raise the same $12 million. Despite all of the efforts, some schools are going to die as some Schumpeterian creative destruction comes to higher education.

Source: Forbes November 28, 2016 16:01 UTC