cost and aid strategies at your law school

Cost and Aid Strategies for Law Schools

May 30th, 2013 2:00 EDT

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May 30th, 2013 2:00 EDT


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Introduction


Market and institutional research firm headquartered in Washington, DC We provide solutions for law schools deans and their leadership teams in

the areas of resource management, student and alumni performance, academic program management, and recruiting and marketing

For example: Identifying new non-J.D. sources of revenue for international, continuing education,

and non-lawyer markets Reconstructing the USNWR law school rankings to understand institutional

position, strengths and opportunities for improvement Helping to assess alumni engagement and attitudes towards their education

Today’s topic is of particular importance to us as we have seen an increased need for help identifying an effective cost and aid strategy

Background on Hanover Research


During today’s webinar, we will cover the following topics: The implications of high student indebtedness Common aid strategies used in law schools Presenter: Austen Parrish, Southwestern Law School Q&A

Outline


Student indebtedness- The stakes are high Tuition elasticity Definition of tuition discounting Cost and aid strategies used in law schools Advantages and consequences of tuition discounting Tools to use to develop a tuition discounting strategy

Introduction to Tuition Discounting and Other Aid Trends


The Stakes are High

The LSAC reports that “As of 05/17/13, there are 374,002 Fall 2013 applications submitted by 55,764 applicants. Applicants are down 13.4% and applications are down 18.8% from 2012.” (Source: LSAC)


The Stakes are High

(Source: LSAC)


Recently released report by the Illinois State Bar Association Small law firms face challenges hiring and retaining competent attorneys Fewer lawyers are able to work in public interest positions New attorneys have too much debt to provide affordable legal services to

poor and middle class families and individuals As fewer attorneys find sustainable jobs in the private sector, more

attorneys enter solo practice Attorneys report that debt burdened lawyers are less likely to engage in pro

bono work Debt drive young attorneys away from rural areas Heavy debt burdens decrease the diversity of the legal profession Threats to professionalism

New Realities


Tuition Elasticity Formula

Higher education tuition is relatively inelastic Importance for higher education institutions to measure tuition

elasticity correctly

Tuition Elasticity


The Chronicle of Higher Education defines tuition discounting as: “The difference between what students are actually paying to attend an

institution and its sticker price.”

Definition of Tuition Discounting


Merit scholarships Schools offer awards of varying amounts to students based on a variety of

qualifications, including LSAT scores, undergraduate GPA, and undergraduate institution

Often not guaranteed past the first year and are often based on students GPA meeting or exceeding the curve

Ability for students to negotiate scholarship awards A growing practice UCLA School of Law, GW Law School

Awarding every student a scholarship University of Illinois College of Law

Significantly reducing tuition for a subset of qualified students Seton Hall University School of Law

Common Aid Strategies in Practice in Law Schools


Allows law schools to address student need Increases student diversity Increases enrollment

Advantages of Tuition Discounting


Reduces student accessibility and affordability Shifts funds from other instructional and student services Increases financial risk exposure for smaller institutions

Consequences of Tuition Discounting


Some institutions are choosing to lower both the discount rate they provide to students and the “sticker price” for full tuition and fees

Though the overall revenues should remain the same, the primary issue of concern in this scenario is whether an institution which lowers its tuition will be perceived as less prestigious or of lower quality by prospective students

Comparing Tuition Cutting to Tuition Discounting


Determining when to lower the sticker price The institution needs to be significantly under enrollment goals Will work best when most students are receiving institutional grant aid

at or in excess of the amount of the planned tuition discount When reducing aid for a specific sub-population, the subpopulation

should be a large group though your institution currently enrolls only a small “share” of that population

Determine price elasticity

Tools to Use to Develop a Tuition Discounting Strategy


Austen Parrish, Interim Dean and CEO, Southwestern Law School

Presenter


Q&A

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Thank you for participating in this Hanover Research webinar. A link to the recording of this webinar will be emailed to you.