ERIC Number: ED172667
Record Type: RIE
Publication Date: 1978-Oct-30
Reference Count: 0
Private Colleges: Are They Pricing Themselves Out of the Market?
Spies, Richard R.
The question of whether private colleges are pricing themselves out of the market is considered. An analysis of the actual application patterns of a sample of high-ability students indicates that colleges and universities are not pricing themselves out of the market. Despite substantial increases in tuition and other fees over the last several years, expensive private institutions continue to attract large numbers of qualified applicants from a wide variety of socioeconomic backgrounds. The major determinants of college choice for high-ability students and their families seem to be the academic ability of the student and the academic reputation of the institutions. Through a combination of the family's own resources and financial aid provided by various sources, families manage to come up with the $8000 plus it takes to attend one of these schools. The finding appears to be as true for low-income and middle-income families as it is for high-income families, and even more true for minority students than for whites. It may be that this finding holds only for students near the top of the ability range of college applicants. Figures are included to show the tradeoff between cost and quality, the relationship between application rates and the student's academic ability and family income, the general relationship between application rates and family income broken down by income category, and white and nonwhite applications to selective schools. (SW)
Publication Type: Opinion Papers; Speeches/Meeting Papers
Education Level: N/A
Authoring Institution: N/A
Note: Speech presented to the College Board annual meeting (October 30, 1978); Based on a study sponsored by the Consortium on Financing Higher Education and Supported by the Alfred Sloan Foundation; Best copy available