Huron Consulting Group Addresses Market-Based Tuition Strategies for Universities

Huron Education Releases Briefing on How Strategic Tuition Pricing Can Enhance Revenues and Improve Quality

CHICAGO--(EON: Enhanced Online News)--Decreased endowments and diminished state and federal funding have left many universities increasingly tuition-dependent, ultimately forcing several academic institutions to raise tuition to meet operating costs. Yet a blanket tuition increase across the institution does not seem to be the answer. Instead, universities should consider looking at strategic pricing for their services focused on relative demand and perceived quality.

“Establishing and executing a thoughtful tuition strategy that incorporates institutional culture and aligns with an institution’s mission and goals offers many benefits”

Universities have already begun to re-examine their long-held tuition traditions and implement new strategies -- charging tuition per credit hour rather than a flat rate tuition; pricing upper-division courses at a higher rate than lower-division courses; and pricing various majors based on quality, popularity, and other market-minded metrics. Universities currently have a tremendous amount of data that would allow them to more optimally price their programs; however, much of that data remains untapped. The new Huron Education briefing discusses opportunities for universities to use data wisely and develop enrollment models that provide the best long-term approach for institutional pricing and tuition-discounting methodologies.

“Establishing and executing a thoughtful tuition strategy that incorporates institutional culture and aligns with an institution’s mission and goals offers many benefits,” said Tim Fournier, managing director, Huron Education. “Maximizing tuition revenue offers the potential for improved resources, allowing the institution to better support needy applicants, invest in new technologies and academic programs, rationalize compensation models, and support other institutional goals.”

Three Data Driven Opportunities for Universities to Raise Revenue and Enhance Student Quality:

• Credit Hour Pricing – Some universities charge full-time students a flat fee regardless of the number of credit hours they are taking. Instead, universities should consider moving toward charging students based on credit hours to increase revenue and allow for better data capture.
• Upper and Lower-Division Pricing – Instructional costs vary, rising substantially as students begin taking upper-division courses, which often are taught by well-paid, senior-level faculty in relatively small settings. Universities should consider charging students more to enroll in upper-division courses to reflect the higher level of services they receive.
• Program Differential – At most universities the demand for specific majors or services varies across the institution. Universities could shift to a market approach, charging more for programs that are widely viewed as prestigious and popular.

The full Huron Education briefing is available at http://www.huronconsultinggroup.com/researchdetails.aspx?articleId=3054.

To receive a copy of the briefing or to speak with one of the Huron Education experts about strategic tuition pricing or other issues impacting higher education, please contact:

Jennifer Frost Hennagir

312-880-3260

[e-mail]

Jenna Nichols

312-880-5693

[e-mail]

About Huron Education

Huron Education is the premier provider serving the unique needs of the higher education industry. Our team of professionals, each with extensive knowledge and experience in the business of higher education and academic medical centers, delivers comprehensive services to the industry and partners with institutions to improve business performance across the enterprise. Our professionals draw from their experience working in the strategic, financial, operational, and regulatory aspects of higher education to develop and implement the most effective consulting and software solutions. Huron Education has helped more than 90 of the nation’s top 100 research institutions improve their performance so they can continue their traditions of extraordinary achievement. Learn more at www.huronconsultinggroup.com/highereducation or follow us on Twitter: @Huron

About Huron Consulting Group

Huron Consulting Group helps clients in diverse industries improve performance, comply with complex regulations, reduce costs, recover from distress, leverage technology, and stimulate growth. The Company teams with its clients to deliver sustainable and measurable results. Huron provides services to a wide variety of both financially sound and distressed organizations, including healthcare organizations, Fortune 500 companies, leading academic institutions, medium-sized businesses, and the law firms that represent these various organizations. Learn more at www.huronconsultinggroup.com.