Financial Aid: A Case Study

Decent Essays
To further understand Mrs. Hansen’s analysis, we, must provide a summary of this case. It is brought to our attention that colleges that have raised its tuition and lowered their financial aid have experienced an increase in application. Moreover, some colleges have decreased its tuition and raised financial aid have had decreased applications (Brickley, 2016). Mrs. Hansen has proposed to increase tuition and lower financial aid based on the data from competing colleges, which led to an upward in the demand curve. Mrs. Hansen has a goal to enroll more students, and reduce the financial aid issue at hand with this proposal. Now, last year, the college enrolled 400 new students who paid $15,000 (after financial aid) totaling $6,000,000, and…show more content…
Second, Mrs. Hansen should analyze how the effects of the price increase would be to the leading student market. Meaning, each college has a target market of regulars, and we need to be aware the sensitivity of the price increase to her main markets, could it harm long-term. Thirdly, Mrs. Hansen needs to determine why tuition has increased in her competitors, she must provide valuable evidence and reasons to the student population. On the reason, why this college is better academically, and personal experience would be better at this college. Finally, Mrs. Hanson needs to look at how financial aid has been a benefit for the students in wanting to go to college. Financial aid has been a vital factor in which school a young adult can attend. Meaning, the price of colleges matter to middle and lower class income families. The question needs to surface, will they be able to afford it, and could this damage retention and graduation rates. Which could lead to a negative reputation within there higher education market. Our future leaders are dependent on the option of financial aid to succeed in this technology driven society. This should be taken into consideration when forming this
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