Reply to Actual tuition for college is 57% less than listed price

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[quote=Anonymous]Because the URL isn't clean and LinkedIn is dumb, here's the stupid post by a consultant, spelling error not corrected:

[QUOTE]Have a child applying to college? Work for a law school? Either way, here’s some eye-catching news.

Private colleges recently hit a record high tuition discount rate of 57.1% for first-time, full-time undergraduates, per the National Association of College and University Business Officers (NACUBO).

This means institutions discounted more than half of their sticker prices. We are seeing the demographic cliff and its early impact on higher education in this data.
This is not a sustainable model for many colleges, and it will hit law schools in 3-4 years.

An analogy would be you’re in a city with a lot of empty hotel rooms, and if the price for the room was listed at $500 for the night, that hotel without demand is happy to give you a room for $250 or less, versus having a completely empty room for no profit. But what happens in that city if demand stays down? A sizable number of those hotels will start to close.

The “city” is American Higher Education. The graph tells the story. Demand is only going to decrease, and while discount rates will stay high for awhile (again good for applicants) the market will correct. In this case a market correction means, sadly, hundreds of colleges shutting down. And likely scores of law schools to follow.

Law schools really need to figure this out quickly as the stakes have never been this high. What feels like the go-go years for applicant numbers to law schools now will hit an abrupt downturn in a few years as the pendelum inevitably swings back.[/QUOTE]

I don't understand why he's framing his post as some big reveal. We all know some schools throw merit money at lots of their kids. Isn't it common knownledge that the higher the discount rate, the more tenuous your financial position is apt to be? We have examples like Sweet Briar in the college side, but also Bed, Bath, & Beyond and JC Penny in the retail industry. [/quote]

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