The notion that everyone needs a college degree has taken a hit of late. Now, more families are thinking hard about the value proposition that colleges offer. Leaders have had to keep tuition down — freezing or even reducing it.

In today’s Martin Center article, Ashlynn Warta looks at the tuition battle.

She writes:

About a decade ago, public universities around the country began freezing tuition in response to student and parent complaints about the high costs of a college education. In the years since, schools have used said freezes as opportunities to remain financially competitive. Given predicted enrollment declines, it’s no shock that many schools are more closely monitoring their tuition prices.

One school that famously succeeded in freezing tuition was Purdue, under the leadership of Mitch Daniels.  Warta reports:

After 37 consecutive years of tuition increases, Purdue made the decision to lock in that rate and has since guaranteed a tuition price of $9,992 through the 2025-26 school year. The university’s motivation for continuing the freeze is to “set a national standard” for affordability, and it is having great success. Since 2012, annual student borrowing for Purdue enrollees has fallen 32 percent, and 60 percent of students graduate debt-free. That’s nearly double the national average of 39 percent.

Other colleges and universities are following Purdue’s example, by lowering expenses (lots of fat to cut) and raising revenues from sources other than tuition.

As the higher-ed bubble continues to deflate, we will no doubt see more colleges competing for students on price. Econ 101: When demand falls, so will the price.