Dive Brief:

• The “discount rate” of attending private colleges — calculated as need-based aid and merit aid as a percentage of tuition and fees — has climbed to an all-time high.
• According to a National Association of College and University Business Officers survey of 401 colleges, the schools are taking in 54 cents for every $1 they claim to charge.
• The fall 2013 average discount rate of 46.4% for first-time full-time freshmen is up from 44.8% in 2012.

Dive Insight:

As Inside Higher Ed notes, wealthy colleges have endowments that can replace tuition revenue lost to the discounts, but most colleges are simply waiving any chance of gaining that revenue back. Ten years ago, the discount rate for private colleges was 38%. In the most recent survey, 57% of colleges reported enrollment declines. College business officers are showing some frustration with the high-price-high-discount model, as well as with the potential alternatives, according to the survey, which collected anonymous opinions from respondents. As tuition rates increase, and discount rates as well, the inflation-adjusted net revenue per student has not increased for 13 years.