Concept Of Tuition Fees

Decent Essays

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

Get Access