Bethel lowers tuition as more colleges avoid sticker shock
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Bethel University is joining a growing number of private colleges that are lowering their tuition prices to avoid scaring off prospective students.
Why it matters: University administrators believe tuition clarity and transparency will help first-generation college students and those from underrepresented backgrounds realize that Bethel is attainable for them.
By the numbers: Bethel, a Christian college in Arden Hills, is lowering its sticker price for undergraduates from $44,050 to $25,990 starting in the fall of 2025.
Yes, but: Only a "nominal" number of students at the university pay the sticker price, university president Ross Allen told Axios.
- That's because more than 98% receive scholarships or financial aid.
What they're saying: "So many people look at the price and just go, there's just no way," said Paul McGinnis, the university's VP of marketing and enrollment.
- After announcing the tuition decrease in an email, one parent who had removed Bethel from consideration called the university thinking it had been hacked, McGinnis said.
- Upon learning that it was real, the parent said their son would be applying that night.
Context: Bethel, like many colleges, has seen enrollment decline for several years, a trend that was exacerbated by the pandemic. In 2023, enrollment was down 15% from 2019 and 31% compared to 2013.
- Allen hopes Bethel's enrollment of nearly 4,000 increases, though that wasn't the reason for the move.
The big picture: Research shows mixed results on the effects of big tuition resets like Bethel's, with universities seeing application and enrollment increase immediately and then level off over time, according to Higher Ed Dive.
The intrigue: Administrators at other colleges have resisted tuition decreases because of concerns that prospective students would view universities with lower sticker prices as less valuable, according to Higher Ed Dive.
The bottom line: McGinnis said he hopes other private colleges will follow suit.