College Sticker Prices Climb Past $100,000 as Many Private Schools Face Financial Strain
Even as advertised tuition costs soar, a growing number of private colleges report financial distress, driven in part by heavy discounting, according to CNBC.
College sticker prices continue to climb, with the total cost of attendance at some private institutions now exceeding $100,000 per year, according to a report by CNBC.
Despite these rising headline figures, the report found that a growing number of private colleges are experiencing financial distress. CNBC attributed this in part to the widespread use of tuition discounting, a practice in which schools offer significant financial aid or scholarships that reduce the amount most students actually pay below the published sticker price.
The report indicated that this gap between advertised prices and actual revenue collected has put pressure on institutional budgets, even as the top-line cost of college continues to rise for those who do pay closer to full price.
CNBC's reporting suggests that the financial model relying on high sticker prices offset by deep discounts is becoming increasingly difficult for some private colleges to sustain, contributing to broader concerns about the financial health of the higher education sector.
The report did not specify which individual institutions were cited as facing financial distress, according to the available excerpt from CNBC.
Sources
- College sticker prices keep rising. Why many schools are still under financial strain — CNBC — Top News
EGazette summarizes reporting from multiple sources; follow the links for the originals.
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