Tuition Hurts Colleges Too

David Diaz

According to Jack Kadden in his New York Times ariticle “Bleak News for Colleges, Too”, colleges are being hurt just as bad by the increase in tuition as students. However, Kadden claims that colleges are offering more discounts and because of that enticing more students to attend college. Although, Kadden only shows that these increases in discounts are actually helping colleges. He does not show how increasing tuition is actually hurting colleges.

Kadden begins by saying that over 58 colleges are charging over $50,000 in tuition a year. He goes on to say that colleges offer more discounts to allow students to attend. He does point out the fact that these colleges expect less revenue because they have to offer more discounts to students. However, he doesn’t point out how increasing tuition hurts colleges.

With tuition prices sky high, colleges can’t expect to get the number of students that they have in the past. This is because students can’t afford the increased tuition price. Some colleges have created a compromise in that they discount the tuition to most students, but that cannot be said of all colleges. Also, these particular colleges expect to receive less revenue because of the discounts and must make due without it. However for the other colleges that don’t offer tuition discounts, they make due with receiving fewer students or in the case of particularly good schools, receive the same number of students because of their reputation. The interesting relationship here is that a college receiving fewer students can survive on a smaller budget and so these colleges aren’t hurt by the increased tuition price. Likewise, schools with a great reputation that can get away with increasing tuition receive the expected number of students and the revenue to provide for these students. The only schools hurt by increasing tuition are those that offer discounts and must make due with less revenue. Schools that don’t offer any tuition discounts expect to receive fewer students, but receive the revenue to provide for these students. One could argue that these schools are hurting because they receive fewer students, but financially they aren’t nearly as bad off as those offering discounts. Schools that have great reputations aren’t hurt at all because they receive the number of students at the price that they ask for.

Kadden is correct in that colleges are hurting due to the high tuition prices in that some must discount tuition and make due with less revenue. However, other colleges that don’t offer discounts make due with fewer students or make due based on a reputation.