Tuition Discounting, U.S.

By providing financial aid to reduce the amount paid by a student to attend an institution of higher education, private colleges and universities discount tuition. That is, institutions charge students receiving financial aid less than the published tuition price or sticker price. Simply defined, the discount rate is the percentage of the published tuition price covered by financial aid. For example, a university with a published tuition price of US$50,000 offering on average US$20,000 in financial aid to enrolling students would have a 40% discount rate. This entry discusses the sources of financial aid at colleges and universities in the United States and how tuition discount rates are calculated.