Early data from the 2025-26 academic year shows historically deep tuition discounts getting even deeper at private nonprofit colleges, according to a study released Monday from the National Association of College and University Business Officers.
For first-time undergraduates, the tuition discount rate at these colleges is projected to reach 57.1% in the current academic year. That's up from 54.5% from the year before, and the highest point in the past decade. For all undergraduates, the discount rate is poised to hit 51.3%, up from 50% last year and above the most recent peak at 50.8% in 2022-23.
According to NACUBO’s early estimate, 90% of first-time undergraduates received some amount of institutional aid, the most since 2021-22.
A large majority of all undergraduates, 84%, received institutional aid.
Amid the heavy discounting, average net tuition revenue from all undergraduates fell by 1.9% after inflation in the 2024-25 academic year, which follows a modest rise in net tuition revenue in the prior year.
“Growing net tuition revenue has been a persistent challenge for some private institutions over the past decade,” NACUBO said in a press release.
The tuition revenue for all undergraduates declined less than that for first-time, full-time students, which fell 2.2% after inflation in 2024-25.
Colleges have tried to manage financial losses from a shrinking pool of high school graduates by doing a better job retaining and graduating students. NACUBO likewise noted that retention is key for financial stability.
However, revenue declines across the undergraduate body pose difficulties for tuition-dependent colleges. It "suggests that retention alone is not enough to eliminate financial strain at many tuition-dependent institutions,” NACUBO said in its report.
The study was based on a survey of 258 private nonprofit institutions.
