Something very unusual is happening: some colleges are having a “tuition reset,” actually lowering their sticker price. Engage in huge price discrimination, trying to charge each customer the maximum amount obtainable. It is common for the “net tuition” at private schools (average fee paid by all students) to be only one-half the “sticker price” (the published tuition charge). Some academic administrators are decrying tuition resets as “a gimmick.” Perhaps, but introducing more price competition is healthy. What really bothers some is that vigorous sticker price competition might reduce the ability of colleges to engage in private income redistribution.

Source: Forbes March 22, 2018 19:52 UTC