Considerations in Evaluating Your Institutional Discount Rate
Douglas E. Clark Vice President of Enrollment Management Ferrum College John W. Dysart President The Dysart Group, Inc. Discount rates are always an important topic for evaluation and discussion at private colleges and universities. The institutional discount rate is simply the amount of unfunded institutional aid as a percentage of gross tuition revenue. For example, if a college is spending $4,500,000 in institutional financial aid against a gross tuition figure of $10,000,000 then the discount rate is 45%. (Note: The traditional, generally accepted method for calculating the institutional discount rate includes only tuition revenue). Institutions constantly monitor their rates, seek […]
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