Americans cannot escape a perennial question they have about higher education: “Why is college so expensive?”
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October 3, 2025

On a navy blue background and in white, text says the problem with tuition discounting. There are two students talking to each other walking towards the camera

Americans cannot escape a perennial question they have about higher education: “Why is college so expensive?”

 

The answer is increasingly unclear to students and families, thanks to policy changes and market dynamics over the past decade that have led to a substantial shift in how public universities approach tuition pricing.

 

A new issue brief from Strada, based on findings in a report from Strada partners Higher Ed Insight, examines why tuition discounting is happening and why it matters. It also offers some principles institutions and states can consider as they approach tuition policies.

 

Tuition discounting, put simply, is the practice of offering targeted grants and scholarships that reduce costs for some students even though the published price remains higher for others.

 

These practices also leave students, families, and citizens confused and without a transparent understanding of the cost of higher education.

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Where we focus

Clear Outcomes | Quality Coaching | Affordability |
Work-Based Learning | Employer Alignment 

Strada’s Justin Draeger, senior vice president, affordability, delivered an important message recently to the House Subcommittee on Higher Education and Workforce Development: Most Americans today have no idea what it costs to attend either a community college or a four-year in-state public university.


In fact, Draeger shared, most are overestimating that cost. And at the same time, most Americans, nearly 4 out of 5, believe college is unaffordable.


Meanwhile, prices that people actually pay for college have been flat or in decline for the last several years in inflation-adjusted dollars.


“Now of course nobody believes it. Why?” Draeger asked the subcommittee. “All they see are rising sticker prices, scary headlines, confusing jargon, and enrollment tactics that too often leave them in a fog of confusion.”

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News from Strada

AASCU

At the American Association of State Colleges and Universities’ Postsecondary Value Symposium, Strada President of Postsecondary Education Ruth Watkins joined leaders from other philanthropic organizations to discuss their roles in amplifying the value of higher education.

WEBINAR

Internships have never been as critical to higher education as they are today — both for students and for institutions. Join Strada’s Kevin Grubb, vice president, work-based learning, and other higher education experts Oct. 15 for a discussion hosted by The Chronicle for Higher Education.

STATE OPPORTUNITY INDEX EVENT

Strada will host a convening Oct. 21 in Washington, D.C., to discuss the second iteration of the State Opportunity Index, which offers a framework to help policymakers, higher education system leaders, and institutions connect education with opportunity.

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