The on-sale-all-the-time business model works well for Joseph A. Banks, but it is not working that well for private liberal arts colleges--particularly the nondescript little colleges that are so common in the Northeast and upper Midwest. These colleges are now discounting freshman tuition by an average of 48.6 percent, the same discount rate that Joseph A. Banks sells its shirts. For undergraduates as a whole, the average discount is 42 percent.
Basically, more and more people are buying a liberal arts education at wholesale prices. And even with steep discounts, private colleges are having trouble luring new students to their campuses.
And now New York's private colleges face a new threat. Governor Andrew Cuomo launched a plan to provide a free college education at New York's public colleges and universities to families with annual incomes of $125,000 a year or less. This may pose a mortal blow to many private liberal arts colleges in the Empire State.
Charles L. Flynn Jr., president of the College of Mount Saint Vincent, said Governor Andrew Cuomo's plan has thrown the New York marketplace for higher education" into confusion." Indeed, private schools in New York compete with New York's public universities for students, and Cuomo's free-college-education scheme will definitely hurt private institutions. A report prepared by the Commission on Independent Colleges and Universities in New York estimates that Cuomo's plan will cause enrollments to decline at New York private colleges by 7 to 15 percent.
What can the private liberal arts colleges do to meet this threat? Not much. As President Flynn told Inside Higher Ed, his college already discounts freshman tuition by 50 percent. “How can I go above that?” he said. “We don’t have a lot more aid to throw.”
New York has more than 100 private colleges and universities, many of them obscure: institutions like Daemen College, Houghton College, Saint John Fisher College, Hilbert College, Medaille College, Trocaire College, Canisius College, Molloy College, Cazenovia College,and Roberts Wesleyan College. Most of these schools draw the bulk of their students from families residing inside the state.
Unless private New York colleges have elite status--Hamilton College, Barnard College, Sarah Lawrence College, etc.--they have little to offer that cannot be obtained at a SUNY institution for less money. And thanks to Governor Cuomo, many New York families can now choose between a small liberal arts college that offers discounted tuition and a public university they can attend for free.
The wolf is now at the door for New York's small liberal arts colleges.
Rick Seltzer. A Marketplace in Confusion. Insider Higher Ed, April 13, 2017.
Tuition Discounts at Private Colleges Continue to Climb (Press Release). National Association of College and University Business Officers, May 16, 2016.
Report: Effects and Consequences of the Excelsior Scholarship Program On Private, Not-for-Profit Colleges and Universities. Commission on Independent Colleges and Universities in New York, March 2017.
I think this is thoroughly unparalleled.ReplyDelete