This research compares linear and tiered tuition models and examines how institutions have combined these tuition models with differential tuition pricing and enrollment incentives. The research also analyzes how institutions employ differential tuition revenue to improve program offerings and enrollment incentives to increase credit hour course loads and on-time graduation.
Key observations from our research
1. Institutions typically transition to a linear tuition model to prioritize revenue generation.
2. Student success is the main motivator of tiered tuition models, rather than revenue generation.
3. Institutions typically utilize revenue from differential tuition pricing to expand program offerings, account for operational costs, improve student services, and expand popular majors.
4. Scholarship programs incentivize students to register for additional credit hours during the semester and to take summer courses to remain on track for graduation.
5. Profiled institutions employ public awareness campaigns and marketing campaigns to encourage students to take increased course loads and graduate on time.
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