Cost and Aid Strategies: How to Maximize Results at Your Higher Education Institution

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Presenting insights into two key components of student choice, this webinar kicks off Hanover Research's 2013 Achieve Growth series for higher education executives. The first of five webinars dedicated to growing and sustaining enrollment, this webinar will present methodologies you can use to determine an optimal cost and aid strategy for your institution.

What you'll learn during this segment:
• How to determine student responsiveness to tuition cost, net cost, and aid at your institution compared to your competitors
• Understanding of tools such as tuition cost sensitivity, net cost sensitivity, and tuition discounting benchmarking
• Impacts of selected strategies on specific student populations
• Lessons learned from the use of cost and aid strategies from two Hanover Research partners, providing both a public and private institution's perspective

E-mail info@hanoverresearch.com or visit www.hanoverresearch.com for more information.

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Cost and Aid Strategies: How to Maximize Results at Your Higher Education Institution

  1. 1. Hanover ResearchSERVICESOVERVIEWSolutions for ManufacturingCost and Aid Strategies:How to Maximize Results for Your InstitutionMay 8th, 20132:00 EDT
  2. 2. Cost and Aid Strategies: How to Maximize Results for Your InstitutionQuestions: Please use the Q&A pod located at the bottom of your screenAudio: Participants can choose to use the microphone and speaker capabilitiesthrough their computer or phone. Please call into the telephone conferenceline if you’d like to use the audio through your phone.+(877) 273-4202; Access Code: 4705008Audio problems: Please email amoynihan@hanoverresearch.comor call (434) 220-1687.Recording: All webinar registrants will be emailed a link to access the recordedwebinar and additional materials.Introduction
  3. 3. Cost and Aid Strategies: How to Maximize Results for Your InstitutionDuring today’s webinar, we will cover the following topics: A discussion of tools such as tools such as tuition cost sensitivity, netcost sensitivity, and tuition discounting benchmarking Presenter: Dr. Harry Hellenbrand, California State University- Northridge Presenter: Mr. Game Quan, Claremont School of Theology Q&AOutline
  4. 4. Cost and Aid Strategies: How to Maximize Results for Your Institution Tuition elasticity Definition of tuition discounting The use of tuition discounting in higher education Advantages and disadvantages of tuition discounting Tools to use to develop a tuition discounting strategyIntroduction to Tuition Discounting and Other AidTrends
  5. 5. Cost and Aid Strategies: How to Maximize Results for Your Institution Tuition Elasticity Formula Higher education tuition is relatively inelastic Importance for higher education institutions to measure tuitionelasticity correctlyTuition Elasticity
  6. 6. Cost and Aid Strategies: How to Maximize Results for Your Institution The Chronicle of Higher Education defines tuition discounting as: “The difference between what students are actually paying to attend aninstitution and its sticker price.”Definition of Tuition Discounting
  7. 7. Cost and Aid Strategies: How to Maximize Results for Your Institution Tuition freezes Tuition reduction Tuition elimination Fixed tuition guarantee Replacing loans with grants Public university price matching Fast-track degree programs Job guarantee Four year graduation guaranteeCommon Aid Strategies in Practice
  8. 8. Cost and Aid Strategies: How to Maximize Results for Your Institution Allows private colleges to address student need Increases student diversity Increases enrollmentAdvantages of Tuition Discounting
  9. 9. Cost and Aid Strategies: How to Maximize Results for Your Institution Reduces student accessibility and affordability Shifts funds from instructional and student services Increases financial risk exposure for smaller institutionsConsequences of Tuition Discounting
  10. 10. Cost and Aid Strategies: How to Maximize Results for Your Institution Some institutions are choosing to lower both the discount rate theyprovide to students and the “sticker price” for full tuition and fees. Though the overall revenues should remain the same, the primary issueof concern in this scenario is whether an institution which lowers itstuition will be perceived as less prestigious or of lower quality byprospective studentsComparing Tuition Cutting to Tuition Discounting
  11. 11. Cost and Aid Strategies: How to Maximize Results for Your Institution Determining when to lower the sticker price The institution needs to be significantly under enrollment goals Will work best when most students are receiving institutional grant aidat or in excess of the amount of the planned tuition discount When reducing aid for a specific sub-population, the subpopulationshould be a large group though your institution currently enrolls only asmall “share” of that population Determine price elasticityTools to Use to Develop a Tuition Discounting Strategy
  12. 12. Cost and Aid Strategies: How to Maximize Results for Your Institution Dr. Harry Hellenbrand, Provost and Vice President for Academic Affairsat California State University-NorthridgePresenter
  13. 13. Cost and Aid Strategies: How to Maximize Results for Your Institution Mr. Game Quan, Vice President For Business Affairs And Chief FinancialOfficer at Claremont School of TheologyPresenter
  14. 14. Cost and Aid Strategies: How to Maximize Results for Your InstitutionA Failed Proposal to Reduce Tuition RatesGamward C. QuanVice President for Business AffairsChief Financial OfficerClaremont School of TheologyMay 2013
  15. 15. Cost and Aid Strategies: How to Maximize Results for Your Institution President Obama in the 2012 State of the Union Address Called Out theCrisis in Student Costs in Higher Education High Tuition Costs Rising Student Debt Economic Return (Jobs) Shift of Federal Student Support to Undergraduate Education Total Student Debt Exceeds Total Credit Card DebtCurrent National Situation
  16. 16. Cost and Aid Strategies: How to Maximize Results for Your Institution Emphasis on Full-Time, Bricks-and-Mortar Programs Tuition Rate Increases Have Outpaced the Growth of the ScholarshipEndowment High Tuition + High Discount (Scholarships) is not Manageable without aPaying Student Population This is an Unsustainable ModelThe CST Situation
  17. 17. Cost and Aid Strategies: How to Maximize Results for Your Institution Higher Levels of Undergraduate Student Debt Already in Default on Prior Undergraduate and Graduate Student Debt Students Borrow More Than Direct Education Cost to Cover LivingExpenses Bricks-and-Mortar Programs Require Relocation Full-Time Programs Limit Employment OpportunitiesCrisis for Students
  18. 18. Cost and Aid Strategies: How to Maximize Results for Your Institution Eliminate the Artifice of Tuition Discounting Prospective Students Will Immediately Understand the Cost ofAttending CST (no waiting for scholarship offer to determine “real” cost) Reduces Student Borrowing Allows Scholarship Cash to Buy More Tuition Units Increases Transparency for the Student(Failed) Proposal: Reduce the Gross Tuition Rate
  19. 19. Cost and Aid Strategies: How to Maximize Results for Your Institution Students Expect to Receive Scholarships Scholarships are Honors They Earn Expect Custom, Flexible Pricing Based on Individual Needs andRequirements Donors Like to Give Scholarships Tuition Price is an Indicator of Quality The Few Schools that Did Attempt Gross Tuition Reduction AbandonedTheir Experiments within a Very Few Years due to CompetitionThe Reality
  20. 20. Cost and Aid Strategies: How to Maximize Results for Your Institution It is Evident that Tomorrow’s Students Will Need to Work While in School Support a Paying Student Population More Part-Time Students More Distance Students More Online Students Non-Traditional Schedules Communication with Fundraising Staff that Unrestricted Gifts are PreferredOver Scholarship Gifts Due to Our 35% Tuition Discounting Cap, Additional Scholarship DollarsCannot be Spent Without More Students Scholarships are Often Restricted, Limiting Their Availability andEffectiveness in Forming the Incoming Class to Current ProgramsActions
  21. 21. Cost and Aid Strategies: How to Maximize Results for Your InstitutionQ&A
  22. 22. Testing Adobe Connect with Hanover StaffThank You Thank you for participating in this Hanover Research webinar. A link tothe recording of this webinar will be emailed to you.

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