More colleges are resetting tuition. Does the strategy work? — from highereddive.com by Danielle McLean
Some institutions have seen short-term enrollment gains from slashing their sticker prices, but the strategy doesn’t guarantee a turnaround.
But as more colleges take the tuition reset plunge, questions around the effectiveness of strategy remain. Some colleges have seen immediate and long-term benefits from the practice, with surging enrollments and applications. However, for many colleges, that growth tapered off over the next few years. And the resets were not enough to turn around the financial fortunes of every college.
“For some schools, they did it and maybe they were too far gone,” said Lucie Lapovsky, an economist and higher education consultant who’s worked with colleges on tuition resets. “Most of our private colleges in this country are challenged right now. It’s not easy.”
Student loan repayments have resumed. Here’s 4 charts that break down American educational debt — from cnn.com by Alex Leeds
As student loan payments resume this month, more than 43 million Americans carrying that debt saw the end of more than three years of relief from monthly payments. But the financial landscape in which they resume payments has shifted.
Researchers are still working to understand the impact that the pause had on borrowers’ finances, said Jonathan Glater, a professor at Berkeley Law and co-founder of the Student Loan Law Initiative.
“People who are precarious at the outset…will also be financially more precarious when the payment obligations resume,” Glater said.
Since 2003, student debt has been the fastest-growing form of household debt, increasing more than 500% over the two decades, far more than increases in mortgage and auto debt that occurred over the same period, according to data from the New York Federal Reserve Bank.