Why US colleges inflate their “sticker” price

January 18, 2016

Many US colleges publish excessively high “sticker” prices for enrollment that few to no students ever end up paying, writes Lucie Lapovsky for TIME, and this tactic might discourage many students from applying to better schools. According to Lapovsky, schools do this because they believe the public associates quality with price. A high price also allows the college to “shape” its incoming classes by selecting whom it wishes to provide grant money to; and finally, some administrators do not realize that lowering the published price will not necessarily shrink the school’s revenues. TIME