What does “yield” have to do with college cost savings? Savvy consumers who understand how critical this figure is in admissions can often yield (pun intended) significant cost savings.
Yield is the metric most admissions directors obsess, fret, lose sleep over. Simply, yield = the number or percentage of admitted students who actually enroll and attend.
So, exactly why is yield important and why should you pay attention? Every college sets enrollment goals for its incoming class. Very few schools can boast of a yield rate like Stanford University of 82%:
In reality, many colleges today scratch and claw for every student they enroll. In the 2018 State of College Admissions, the National Association for College Admission Counseling reported the average yield rate continues to decline – down to 33.6%.
Couple this with the fact the number of traditional college-aged students enrolling declined for the 7th consecutive year – Current Term Enrollment Fall 2018, National Student Clearinghouse Research Center means colleges (and admissions directors especially) feel the heat when they do not meet enrollment goals.
Multiple years of “low yields” translates to declining enrollments – which means budget shortfalls. On more than one campus I worked this meant delays in campus initiatives, building projects/upgrades or worse yet – program cuts and staff layoffs.
Is it any wonder many campus administrators and admissions directors lose sleep over “yield”?
Don’t feel too bad for them, they understand the ground rules. Colleges have been less than transparent over the years in the pursuit of enrolling students:
- Bombarded with brochures – a college reaching out doesn’t necessarily mean they have any intention of admitting you – many entice applications for the sole purpose of lowering admit rates in an attempt to boost rankings.
- Bait and switch – awarding more “free money” (grant and scholarship) to incoming freshman, and converting a % of this free money to loans in subsequent years. (always read the fine print on your financial aid award).
- Preferential Packaging – The art of offering more grants and scholarships to students it really wants to attract versus offering more loans to those “less desirable”.
- Hidden costs – differential tuition rates, hidden fees, advertising room & board as “true” cost of attendance when in reality these are the “average” prices students pay, etc.
- Do you really think early decision and early action admissions deadlines are designed to benefit “students”? If you do I have some property I would like to speak with you about.
Most colleges want (in actuality, need) to yield as many students as possible from its pool of accepted students. Colleges often do “whatever it takes” to protect their yield. How might one benefit?
Let’s say hypothetically, Luther College is your top choice. Luther at 19% doesn’t have nearly the yield rate as Stanford.
Furthermore, let’s assume Luther tends to compete with say, Gustavus Adolphus College (18% yield rate by the way), for the same pool of students.
Remember it is best to never eliminate a school until the end of this process – even if you have no intention of enrolling. Thus, hypothetically, I might suggest you show enough demonstrated interest in both schools to receive an offer of admissions.
For argument’s sake, we will say Gustavus Adolphus offered you $2,000 annually more in merit scholarships than Luther. You really prefer Luther, but…
Wink, Wink. Nudge. Nudge. See how “hypothetically” leveraging Luther’s “yield rate” versus Gustavus’s higher offer might potentially work in your favor (theoretically of course)?
Understanding the dynamics of “yield” can and does lead to cost savings – remember the average yield rate is currently about 33%. It will not work at every school, every situation is unique, and results can vary from year to year, but families can and do successfully mediate better financial packages.