This online journal article, by Randall J. Stiles and Jill Tiefenthaler, appeared in the July/August 2012 issue of EDUCAUSE review. The article addresses five risk areas that leaders in higher education might address when putting forth an analytics initiative.
In the current market of higher education, skyrocketing tuition prices and unproportionally small increases in income are contributing to overwhelming amount of debt for recent graduates. Because of this, many question whether the benefits of a postsecondary degree still exceed the costs. Economists and policy makers alike attribute this deterrence to the complicated financial aid system and have proposed many ideas for simplifying the process. Motivated by this effort, this study uses Colorado College as a case study by utilizing a matriculation model with two years worth of admitted applicant data in order to investigate the possibility of the school changing its tuition model to being a percent of a student’s reported Average Gross Income (AGI). We found the optimal percentage to be between 18% and 19% because the class size and relevant demographics at these values remain relatively the same as under the traditional model.