David Marcotte, Public Policy, on Inside Higher Ed

The tendency for universities to boost tuition in a downward economy is not surprising given the fact that recessions typically lead to dwindling state support. There’s no disincentive for universities to institute big hikes of 15 percent or more when they need money, according to a new paper titled “Rising Tuition and Enrollment in Public Higher Education.” Universities that raise tuition at such high rates don’t experience enrollment declines to any greater degree those do with smaller increases, and they still come out ahead financially even when they raise rates and lose students, the researchers found. “This is only a revenue generating question. There are of course political considerations and equity concerns [to consider as well],” said Dave Marcotte, professor of public policy and co-author of the paper.

The article, “Freezer Burn,” ran on Inside Higher Ed on Wednesday, January 20.