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Private Colleges Propose Tuition Reduction

by Ashley Dobson
What if America’s private colleges could stop their annual increases in tuition or even drop their prices down?
The National Association of Independent Colleges and Universities (NAICU) has an idea it says would do just that.
NAICU has recommended that Congress give private, nonprofit colleges a temporary anti-trust exemption for the purposes of promoting affordability.
Current laws ban discussion about prices and discounts — including student aid — among competitors in any industry. NAICU says that this has led to a vicious cycle of ongoing tuition inflation and has forced private colleges to offer larger and larger discounts on the sticker price to stay competitive.
They believe that if schools could talk to one another, they could end this cycle and start targeting financial aid to the students who need it most. The thinking is that if everyone made the decision to collectively lower tuition, then no college would feel like it “lost” because it wasn’t offering the huge discounts that are currently available to counter price inflation.
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