The Nobody State University when increasing the tuition fee should do this while ensuring that the university maintains healthy enrolment of students. The increase in tuition fee will not necessarily lead to increase in revenue. Theoretically, we can use the price elasticity concept. The concept explains the relationship between the responsiveness of demand towards changes in price (Cini 2015). Higher tuition fees will mean that newer students will prefer universities that are much cheaper. NSU goal to raise more revenue will not be achieved. The already existing students, however, will have no choice but to pay the new tuition fees. Getting higher education is every person’s needs and for the university to increase fees might make this a …show more content…
Paying in installments will lessen the effect the student will feel when the fees are increased. The increase in revenue will make the students more resistant to any other change that the university might want to add.
The amount of revenue will remain the same if the cost of collecting that revenue will increase. Admissions of students cost a lot of money. The difference will just be the same, and the university will not have done any justice to itself or the students. Fewer students to be enrolled will mean that the staff is underworked. The economy is another condition that will decide whether revenue will increase once the fee is increased. Improved economy means that students can afford the state university fees. Regardless of the increased fee, more students will want to enroll (Cini 2015). What the university should do to expand revenue is through marketing. The university should have a good marketing plan to attract more students to the school. Nobody State University can for example come up with a program that students apply for free school meals for those who academically perform better. Search kind of marketing strategy will attract more students to enroll. This way revenue will be expanded.
Another way to expand revenue is through resourceful staffing. The university can look at how efficiency can be achieved in the staffing budget. The university should have guidance on organizing staff structure which is
With this increase in tuition costs it is making a college education more and more unaffordable and putting students in more debt.
In 2000, the Board of Ursinus College, raised its tuition from $19,331 to $23,460. This turned out to be a 17.6% increase. Surprisingly, the tuition increase proved to be a positive change for Ursinus College. The college received more than 200 applicants than its previous year (Brickley, Smith and Zimmerman, 2009, p. 110). Other regional institutions such as University of Notre Dame, Bryn Mawr College and Rice University also experienced a similar trend once they increased their tuition rates (Brickley, Smith and Zimmerman, 2009, p. 110). The president of Ursinus College deduced that the tuition increase affected enrollment rate (increased enrollment). She simply stated that “people don’t want cheap” (Brickley, Smith and Zimmerman, 2009, p. 110).
Thesis: Thousands of colleges across the country have steadily increased tuition throughout the years and Colorado State University is no different. Today I will share with you both the perspective of those that believe tuition increases are necessary and of those against it in order to help form my own opinion on the necessity of tuition increases here at CSU.
The trend continues with the skyrocketing prices of college tuitions. This is not an uncommon issue the days of college tuition being affordable are slowly fading into the past. This conundrum has brought to light the idea of using tax money to help pay tuition. This idea has vast potential, but can it reach its potential.
Since 1974, tuition has been on the rise and has reached new heights. One reason why tuition is increasing is because of “the state governments’ unwillingness or inability to raise per-student financing” (Davidson). The government is spending less on college and moving those funds into other categories, such as the military. Furthermore, colleges are spending less on each student than they did during pre-recession (Fox). Even after the recession, the government is continuously cutting more and more from education funds. As the government cuts more from education funds, tuition cost will steadily increase to compensate the loss. Tuition increased from 1994 to 2015 is depicted in the graph on the next page. Drawing a conclusion from the graph, it is possible that if this trend continues, public colleges will approximately reach the same price as private colleges one day. The amount of financial aid given is unable to meet the needs of lower income students,
Today college tuition prices are rising. Paying for college can often be a stressful responsibility. A college education is very important for many students, but when stressing on how to pay for college gets in the way, it becomes more of a burden. Kim Clark effectively states the rising prices of college tuition in her article, “The Surprising Causes of Those College Tuition Hikes.” Clark states that the cost of attending a public university, even after subtracting out aid and inflation, rose more than fifteen percent in the last
The student debt is rising higher each year. When students do not have enough money to go pay for college,
Tuition and student debt at colleges and universities in America have been rising far more quickly than inflation for over four decades. This is a trend that will continue without intervention. Student debt drastically affects students’ lives and decisions from getting married, to buying home, or to starting a business. The amount of debt held by students after graduating not only negatively affects the individual, but the economy as well. Loads of economic activity is currently halted by students working to pay off their loans. This is a consequential problem and the increasing number of student debt in America must be addressed.
Over the same period, in state tuition and fees at public four-year institutions increased more than two hundred and twenty percent from $2,175 to $7,030. ( Marcus, J). This suggests that less money is being spent on students education and more is spent on non instructional activities, such as administration and faculty research. Rising government bursary have increased the quantity of education request. This means that the rising cost of a college education is due in large part to the increased financial aid available rather than any general improvement in the value of
Since 1985, college costs have surged more than 500% in the United States. Northeastern continues to raise, not lower, our tuition every year, which makes the university less affordable for families who do not even qualify for financial aid or students that take out loans to pay their tuition. Northeastern’s President argues that a tuition freeze would mean less financial aid would be given. In recent years, our university has surpassed funding records and should find
To raise more revenue, Nobody State University increases its tuition so, this would not increase the revenue but it would decrease the revenue. If one increase then the other would definitely decrease. No it would definitely not result into more revenue to have more revenue Nobody State University would have to decline some enrollments in order to increase the revenue. Most likely Nobody States University will not decline enrollment so the cost of tuition would definitely be increased.
The tuition increases have come in response to the lack of federal funding to universities, leading them to find their own way to provide for their upkeep. “Recent increases in university tuition fees are part of a new entrepreneurial trend in higher education in which institutions are expected to generate more of their own revenue” (Quirke). The universities have decided that since they can no longer look towards federal funds to fuel their costs of maintenance and revenue, they must find a new route towards attaining much needed funds, and they have chosen to
Other reasons for the raise in prices could be the health benefits or the rising utility costs the school has to pay. Some schools promise the families a compact plan. In this plan they will pay the same amount of tuition for all four years. The downfall of this plan is that they take the average of all four years so you could end up overpaying for your freshman year. (Kelley)
The ability to attract students is a strange situation as a financial analysis leads us to see an increase in student numbers with the ability to maintain this year on year. This goes against the threat of the increased affordability of higher education.
Before debating on whether increasing tuition fee is unfair to future students, we should keep in mind that the current education system and policy can never benefit everyone. Especially when the competition between universities is a lot more intense nowadays. Increasing the income and value of the school is the priority. If one has no money or resources provided, it is less likely that he or she can be enrolled at a university compared to others. Thus, the