In the Converse case, a private master’s university located in South Carolina was struggling with high tuition cost for current and potential students. Betsy and her staff evaluated the college pricing model to develop a more sustainable and transparent operating model for the middle class market. The RPRC case gives three options that Betsy and her staff can choose from.
CHOICE 1: Lower the tuition cost for traditional undergraduate students.
PROS: Would help Converse University stand out from other universities and encourage students to attend due to the cost of tuition. Create a healthier operating model regarding the scholarships.
CONS: Lowering tuition might seem that Converse University is not a university but a community college. Its reduction in tuition could affect the university staff if they don’t have enough
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Converse University could later have to close the private university if it doesn’t figure out on how to generate additional revenues to offset the cost.
CHOICE 3: Have a Loan Repayment Program (LRP) so students without employment after college would have loans covered by an insurance policy.
PROS: Would help students and their families with financial problems once they graduate. Students would easily start school without thinking that they can’t afford to attend college.
CONS: Converse University would have to pay an insurance premium for each student who enrolls in the LRP. Tuition fees would increase which will result back to the same problem.
MY CHOICE: Choice 1
RATIONALE: Option 1 would be more suitable for Betsy because if they reset the tuition to a significantly lower price students would be more at ease to attend this university. With Converse discount students would be saving 43 percent in tuition which would help with the high-tuition dilemma. It would also it would help the university stand out from other