Price Elasticity of Per-Credit-Hour Tuition Charges and the Effects on Four-Year Graduation Rates

<title>ABSTRACT</title> Colleges and universities are faced with the necessity of raising tuition rates to meet the ever increasing costs of providing higher education. How those increases are marketed may influence the typical negative impact such increases have on enrollments. This study examines whether changing tuition rates to a sliding scale based on the number of credit hours taken will increase four-year graduation rates. Other factors that influence four-year graduation rates are also examined. The results indicate that a sliding tuition rate scale does not increase four-year graduation rates. The authors suggest that emphasizing value may make tuition increases more palatable.