Effects of Discounting Tuition on the Students Enrollment in Higher Learning Institutions

Document Type:Research Paper

Subject Area:Economics

Document 1

THESIS: Effects of Discounting Tuition on the Students Enrollment in Higher Learning Institutions The relevance of the Topic Institutions of Higher learning In the United States have over the recent years experiencing an increase in the Tuition fees. This is due to the government subsidy in the education not currently carried out. Therefore this paper presents research on the possible measure of the effects of this increased cost of university admissions both on the public and private Universities. With other possible elements such as retention and the graduation rate and possible institution financial management involved. The study aims to explore the framework, and the central question of the research is; “To what extent does tuition discounting affect the Students Enrollment in the Institution of Higher learning?’’ Students Name Institution Course Professor Effects of Discounting Tuition on the Students Enrollment in Higher Learning Institutions Abstract The research indicates the impact of the education discount on the enrollment, retention and the rate of graduation in the Institution of Higher Learning.

Sign up to view the full document!

The effects of the tuition changes may vary depending on some factors. Although the increase in the fees is evident, the rate is lower than the inflation rate and therefore, this paper aims to explore the effect of the tuition fees on the access to these institutions and the institution management. The study on the outcome of differential pricing where the different amount of goods and services are traded at separate charges indicates otherwise, (Stigler, 4; pg. Due to the downward sloping for the demand curve for higher education, the rate of admissions would also reduce ceteris peribus. On the other hand, the willingness of the buyer will determine the price of the goods that results to a producer surplus. Although there is a difference in the performance in the public and private universities, the support of government through education subsidies will make their enrollment and financial operations different for the individual institutions, Likewise, lack of support will affect the public institutions due to the demand for more tuition fees, giving a market advantage to the private universities who might not be affected financial due to the normal operation routines.

Sign up to view the full document!

The original aim for the financial aid in the public university is to provide equal educational opportunities for the minority groups who could not afford private institutions fees. It also acts as a charge subsidy reducing the recipient's net expenses paid. Therefore when debating on the link between tuition fees and the admission to a college education, it is crucial to analyze the effect of discounting financial assistance in the relationship. Therefore the particular questions to be addressed in this research is • How do changes in the nation education-based budgets influence the college enrolments among the young students? • Does the increase in the tuition fees in the higher education institutions lead to misappropriation retention effect on the admission rates in public vs private institutions? • How have the college and university enrolments changes during the four year graduation period 2006 to 2015? Using the regression model, I will first have to approximate the enrollment for all the universities and then re-approximate for individual universities to compare the differences.

Sign up to view the full document!

However, most students chose to enroll in the private colleges and institution due to the reputation and the public due to the affordability and the presence of discounted fees. Therefore, the enormous subsidized tuition fees are encouraged more to attract the students during admissions. The contribution of the paper This Paper aims at contributing to the knowledgeable through the provision of a thorough analysis of the relationship between the changes of the state budgets on discounted fees on the enrolment of the students to the university. Various publishers have indicated the present cut on the Education Subsidy by the U. S government due to the unfavorable economic conditions and inflation. Nonetheless, there are different effects on the subsidy of the tuition fees on the public and private institution.

Sign up to view the full document!

Therefore, more research on the outcome of these complexities as explained in this research will significantly improve our interpretation of higher education in the admissions on the public and private institutions. This essay is arranged as follows. The next section is the literature review summarizing the previous researches on the effects of the discounted tuition on the institutions of higher learning, The third section denotes the empirical methodology used in the exploration to present the possible outcome from the data and lastly the results, discussion and conclusion. Literature review According to Kane (1999) Historically, Higher learning institutions that receive the government and public aid revealed the needs of the citizens through discounting the student’s education costs. In the United States, Education is on second largest government program agenda after Health.

Sign up to view the full document!

The program However has received various setbacks specifically in funding due to the current inflation and unfavorable economic situation that has proven difficult to come out. Unlike in the early 19th centuries when the discounting tuition was a key government fully funded program for the public institution. Although there are minimal sources that focus on the admissions relations to discounted tuition, some scholars argue that the discounted fees do not influence the quality of the students. Instead, it increased the university expenses on the in the 1990s. However the institutions that are financially stable remain an advantage using the discounting education to keep and improving their status and other recruitment objectives like diversity, increasing the tuition fees can affect the enrolment in the Public institutions due to the inability to afford the required amount to access education.

Sign up to view the full document!

On the other hand, it provides a fair level of competition with the private universities who would also want to attract their students through low and discounted tuition fees. The college enrolment has slightly declined with a limited percentage due to the continuously increasing tuition fees especially those who might not be in a position to get the required amount making the rate of education costs. The enrolment in the colleges is not wholly dependent on the discounted tuition, some also depend on the accessibility, and the quality of education offered due to the market demand for a particular brand of employees. Additionally, the discounting tuition as a mechanism for making a profit has led to adverse conditions for various institutions, therefore, in this research is established on this findings and present a more entailed interpretation of the relationship between the discounted tuition, financial aid and the enrollment rate in the institutions of higher learning.

Sign up to view the full document!

The other variable is the dependent variable, to observe the enrollment in the institutions. In the study, I also use the dependent variable which is the quality procedures and the students’ performance. They comprise of the income (sum of admitted students divided by enrolled), Retention, (the ratio of the previous academic year students who are re-enrolling and are not part-time), Graduation percentage (the rate of the entire troop). Out transfer (the ratio of the students registered in other universities or colleges and not those who fall out) and lastly the SAT 75, (of the incoming group of new students, a75% cut) (pg. 7) Importantly, to manage the features of the institution, we include the Female ratio (the entire female student's ratio to entire students), Enrollment (the general algorithm of the complete students registered for a loan at the end of the learning year).

Sign up to view the full document!

The variable that is used include the profit, transfer out SAT75 and the rate of graduation The outcome are shown in Table 1 whereas the estimates indicate that tuition discounting is related positively and significantly to the benefits and retention in all the institution samples. Similarly, the results show a negative relationship between the SAT75 and the rate of Graduation while the transfer out measurement is statistically irrelevant. The primary information presented in the upshot is the idea that the universities and colleges are incapable of improving the quality of the students and the level of graduation even though they can enhance the profits and the rate of retention through the effective tuition write off. The differences between the private and public institutions of higher learning are also noticeable from the outcome which shows an impressive result for the profit-oriented institutions.

Sign up to view the full document!

The discount measurement samples are not often necessary in the calculations for the public institutions. The results indicate that lowering tuition fees is not often a capable instrument for the controlling the university enrollment. This involves the study of some other variables such as SAT scores, the rate of transfer and the retention and speed of graduation. Generally, the discounting assist helps the universities to have extra profits enrollment and increased frequency of retention and doesn’t have an impact on the quality of the newly admitted students or the percentage of completion. Regarding the decreasing the rate of university drop out, and achievement could prove that it requires a typically longer duration for the students in these universities and the competitive private institution students as a channel for transfer hence increased rate of university transfers.

Sign up to view the full document!

Although to some extent, the reduction of the tuition fees led to the increase in the enrolment in the universities in the U. The transfer rates in the institutions are not affected by the enrollment in the institutions. The increased tuition, however, has led to the market competition within the higher institution of learning. Competition is healthy for the public and private universities as it enables the institutions to improve their mechanism of discounting tuition. Unlike the public universities and colleges, the quality of the students admitted is not dependent on the tuition fees, but instead, it depends on the reputation of the university to manage and retain its students and the provision of quality education. The private universities are known for discounted tuition fees at certain periods of enrollment as a strategy to attract more students to register with them.

Sign up to view the full document!

From $10 to earn access

Only on Studyloop

Original template

Downloadable