Last month, four Republican lawmakers from both the House and Senate requested detailed records from Ivy League university presidents regarding their tuition pricing methodologies.
The letters claimed these elite institutions set the benchmark for tuition rates, creating a ripple effect that allows many colleges and universities to justify charging higher fees than they might in a truly competitive market.
However, only a small number of schools beyond the Ivy League can consistently command such high tuition from a majority of their student body. Most private—and many public—colleges engage in fierce price competition, especially leading up to the May 1 enrollment deadline. Currently, the average tuition discount for first-time, full-time students at private colleges exceeds 56 percent.
These tuition reductions, often awarded as merit-based scholarships, can significantly lower the total cost families pay over four years, sometimes by six figures. Unlike need-based aid, which depends on a family’s financial situation, merit scholarships tend to be less predictable.
The true engine behind college pricing isn’t a mastermind at prestigious universities. Instead, it’s a set of sophisticated algorithms quietly developed over decades by consulting firms operating behind the scenes. The two largest players—EAB and Ruffalo Noel Levitz (RNL)—are owned by private equity firms.
To fully grasp how this system evolved—and how it currently affects families and investors—it’s necessary to look back 50 years to a pivotal moment when an unconventional figure transformed the admissions process at Boston College.
