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Beneath the tuition discount: a mixed-method study exploring the implications of financial aid in higher education
Dissertation   Open access

Beneath the tuition discount: a mixed-method study exploring the implications of financial aid in higher education

Kayla M. DiGiovanni
Doctor of Education (Ed.D.), Drexel University
Jun 2026
DOI:
https://doi.org/10.17918/00011489
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Abstract

Educational leadership Financial aid Institutional sustainability Net tuition revenue Student perception Tuition discounting
This mixed-methods case study examined the relationship between tuition discounting, student perceptions of financial aid, and institutional sustainability within a private, non-profit higher education institution. As tuition costs continue to rise and enrollment pressures increase, institutions have become increasingly reliant on tuition discounting and institutional financial aid as enrollment management strategies. At the same time, concerns regarding affordability, the perceived value of a college degree, and long-term financial sustainability continue to grow. The purpose of this study was to explore trends in tuition pricing and net tuition revenue, examine how tuition discounting strategies influence enrollment, and assess how student perceptions of financial aid and tuition value impact persistence behavior. The study was guided by five research questions related to tuition trends, enrollment behavior, student perceptions, and retention. Bowen's Revenue Theory of Costs, Resource Dependency Theory, and Tinto's Theory of Student Departure provided the theoretical framework for the study. Quantitative data was collected through publicly available sources, including the Integrated Postsecondary Education Data System (IPEDS), College Board, and the National Association of College and University Business Officers (NACUBO). Qualitative and student perception based data were collected through an online Qualtrics XM survey administered to undergraduate students at the study site. Quantitative analysis was conducted using SPSS software, while qualitative responses were reviewed for common themes related to affordability, value, and persistence. Findings indicate that tuition discounting continues to play a significant role in shaping enrollment and persistence decisions; however, rising discount rates may constrain long-term net tuition revenue growth and increase institutional reliance on tuition driven strategies for sustainability.

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