The Relationship of Tuition Discounting and Student Loan Debt at

Taylor University Pillars at Taylor University Master of Arts in Higher Education Theses Graduate Theses 5-2018 The Relationship of Tuition Discounting and Student Loan Debt at Faith-based Institutions Alana Marie Dean Taylor University Follow this and additional works at: https://pillars.taylor.edu/mahe Part of the Higher Education Commons Recommended Citation Dean, Alana Marie, "The Relationship of Tuition Discounting and Student Loan Debt at Faith-based Institutions" (2018) Master of Arts in Higher Education Theses 123 https://pillars.taylor.edu/mahe/123 This Thesis is brought to you for free and open access by the Graduate Theses at Pillars at Taylor University It has been accepted for inclusion in Master of Arts in Higher Education Theses by an authorized administrator of Pillars at Taylor University For more information, please contact pillars@taylor.edu THE RELATIONSHIP OF TUITION DISCOUNTING AND STUDENT LOAN DEBT AT FAITH-BASED INSTITUTIONS _ A thesis Presented to The School of Social Sciences, Education & Business Department of Higher Education and Student Development Taylor University Upland, Indiana In Partial Fulfillment of the Requirements for the Degree Master of Arts in Higher Education and Student Development _ by Alana Dean May 2018  Alana Dean 2018 Higher Education and Student Development Taylor University Upland, Indiana CERTIFICATE OF APPROVAL _ MASTER’S THESIS _ This is to certify that the Thesis of Alana Marie Dean entitled The Relationship of Tuition Discounting and Student Loan Debt at Faith-based Institutions has been approved by the Examining Committee for the thesis requirement for the Master of Arts degree in Higher Education and Student Development May 2018 Todd Ream, Ph.D Date Thesis Supervisor _ Scott Gaier, Ph.D Date Member, Thesis Hearing Committee _ Drew Moser, Ph.D Date Member, Thesis Hearing Committee Tim Herrmann, Ph.D Date Director, M.A in Higher Education and Student Development iii Abstract Tuition discounting and student loan debt are two topics in United States higher education of growing concern among practitioners Both of these financial constructs affect the overall cost of college and how students pay for their education Bringing both concepts together, the purpose of the study was to explore quantitatively a relationship between tuition discounting and student loan debt at faith-based institutions Specifically, the study examined the relationship of these two financial constructs at member institutions of the Council for Christian Colleges & Universities (CCCU) The definition of tuition discounting employed is the practice of providing non-repayable institutional grants and scholarships to offset published tuition prices Student loan debt, a repayable form of aid, in the study focuses primarily on students who participate in Title IV financial aid programs through the federal government Utilizing data gathered from the Integrated Postsecondary Education Data System (IPEDS), findings from the statistical analysis conducted displaed a statistically significant relationship between student loan debt and tuition discounting at faith-based institutions Further exploration of the effect of published tuition price on this relationship indicated an increase in statistical significance of the relationship between the two constructs as the published tuition price increases Given these results, the study provides information to be used in the decision-making of senior-level administrators as tuition discounting impacts students’ ability to attend higher education iv Acknowledgements To Todd, Scott, and Drew: Thank you for believing in this research since day one Each of you have contributed so much throughout this process I am a better researcher, writer, thinker, question-asker, and teacher because of your guidance and mentorship All of you have not only poured into this thesis, but also my life To Dr Jesse Rine: Your intentionality and mentorship has significantly shaped this research process as well as my professional development Thank you for your guidance as I develop as a researcher and professional You remind me that Grove City College will always be home I am proud to share an alma mater with such an esteemed leader in this field To the OIP staff & students: Thank you for opening my eyes to see the world in a different way I have been truly blessed to not only experience Taylor during my time, but also the world The grace and patience you have shown me these past two years did not go unnoticed You all continue to teach me more than you know To Taj Podge and Tic-Tac-Taj: Sharing a home with you all has been an immense blessing Each of you has taught me how to be a better friend and roommate I am thankful to have lived with seven amazing people like yourselves My future home is always open to you all To Cohort X: Learning, growing, crying, and laughing alongside you all the past two years has been a great honor and privilege I will forever cherish this experience v together Each of you has impacted and shaped my life in meaningful ways I would not be who I am today without you all To Aunt Meem: You have instilled in me the importance of education since before I can remember You truly embody the characteristics of an educator and life-long learner I aspire to love and care for students in the way you have throughout your life To Mom, Dad, and Hannah: Thank you for loving me well and cheering me on the last six years when I was away at school You all have shaped me into the person I am today, and for that I am forever grateful I would not be where I am today without the endless support you have offered me throughout this journey I love you three more than words can describe To Thomas: This journey hasn’t always been the easiest, but you have loved me so well in this crazy season You continually put my dreams and goals before your own Your selfless support means the world to me and does not go unnoticed You make me a better person every day I can’t wait to marry you vi Table of Contents Abstract iii Acknowledgements iv Chapter Introduction Purpose of Study Chapter Literature Review Tuition Discounting Student Debt 14 Value of Degree 19 Faith-based Institutions 20 Benefits of Study 22 Chapter Methodology 23 Approach and Design 23 Context and Participants 24 Description of Sample 24 Procedures 25 Independent and Dependent Variables 25 Calculating Tuition Discounting 26 Data Analysis 27 Chapter Results 29 vii Introduction 29 Descriptive Statistics 29 Change over Time in Variables 30 Strength of Linear Relationship Correlation 31 Impact of College Published Tuition Price 32 Chapter Discussion 35 Implications for Practice 38 Implications for Future Research 41 Limitations of the Study 42 Conclusion 43 References 44 Appendix A: Sample of CCCU Institutions Used in Study 50 Appendix B: Institutions Excluded from the Study 54 viii List of Figures Figure Tuition Discount Rate of CCCU Institutions 30 Figure Amount of Federal Loans per Student in CCCU Institutions 30 Figure The Linear Relationship of Tuition Discount Rate and Amount of Federal Loans, 2008-2016 31 Figure The linear relationships of institutions in the 25th percentile, 2008-2016 33 Figure The Linear Relationships of Institutions in the 75th Percentile, 2008-2016 34 41 2012), institutional recognition of the debt relief their aid provides to students is critical Institutions must thus understand their role and the control they have over the current state involving discounting and indebtedness of students Implications for Future Research This research allows future studies to further clarify these results and expand on them in at least two ways First, utilizing a qualitative component or overall method can greatly expand this research Results of the study relied solely on quantitative data obtained through IPEDS reports Expanding the study with a quantitative approach is then possible in at least a couple of ways For example, future research investigating individual institutions’ approaches toward tuition discounting and the effects of such approaches on students will greatly benefit practitioners Also, future research could bring more depth and insight into the benefits and impacts of tuition discounting on student loan debt by conducting qualitative interviews with practitioners and students Applying a mixed methods approach to research on related topics will bring more clarity and further depth of understanding Second, while the current study included an additional exploratory analysis of the relationship between tuition discounting and student debt impacted by institutional price, future studies could further explore other impacting factors Such studies could utilize a similar protocol, while identifying the impact of other influential variables, such as average amount of institutional aid a student receives or the tuition discount rates themselves For example, future research could examine the statistical relationship controlling for the increase in tuition discount rate Due to the limited scope of the study, the researcher was only able to conduct an exploratory correlation for one factor The 42 relationship found in the study could be furthered when controlled for other factors, such as tuition discount rates themselves The study could greatly benefit from exploratory correlations controlling for many other factors impacting student loan debt and tuition discount rate Limitations of the Study Several limitations, however, also define the current study and include at least low r squared values and correlations, the scope of the study, and the institutional type of the sample Future researchers should work to improve on these limitations as they pursue the topic further First, a major limitation is related to the strength of the correlation Pearson’s correlation measured the linear relationship between the variables While the relationship of the variables exists, it is important to note the r values found in the analysis were low A weak correlation coefficient allows the researcher to recognize the correlation but does not allow for making predictions based on the presented results A second limitation of the study is the type of institutions used in the sample population The study primarily focused on faith-based institutions that are members of the CCCU Not all institutions faith-based in mission are members of the CCCU, excluding institutions also a part of the faith-based sector Considering the sample population, results are not representative of all institutions The study was limited by the scope of institutions represented Next, the formula for calculating tuition discount rate is also a limitation of the study Currently, no single, widely accepted formula for tuition discount rate exists Many practitioners and researchers disagree on the formula used to find tuition discount 43 rates While the research brought together input from experts in the field as well as an understanding developed by Allan (1999), the way tuition discount rate was calculated impacts the transferability of the study Future studies could potentially use a different calculation and understanding of the tuition discount rate formula Finally, the variable for published tuition prices utilized in the additional analysis was focused primarily on full-time, first-time undergraduate students Using an IPEDS variable focused on the exclusion of undergraduates beyond their first-year was inconsistent with the other variables found within the study Utilizing a variable for published tuition price for all undergraduates, if available, could potentially impact the results of the exploratory correlations Conclusion The negative relationship found between tuition discounting and student loan debt at faith-based institutions provides senior-level decision-makers with crucial information on how tuition discounting practices impact students Moving forward, tuition discounting should no longer be seen through a lens focusing primarily on the institution Decisions regarding discounting practices should be viewed from the student perspective As Bronfenbrenner notes in his ecological theory, students are impacted by exosystems, influencing but not including them (Evans et al., 2010) Senior-level leaders are responsible for caring and advocating for their students, and that process now begins even before admitted students choose to enroll As tuition discounting expands, leaders must understand the benefits and drawbacks their decisions have on those for whose care they are responsible 44 References Akers, E., Chingos, M M., & Henriques, A M (2015) Understanding changes in the distribution of student loan debt over time In B Hershbein & K M Hollenbeck (Eds.), Student loans and the dynamics of debt (pp 11–37) Kalamazoo, MI: W E Upjohn Institute for Employment Research Allan, R (1999) Taxonomy of tuition discounting Journal of Student Financial Aid, 29(2), 7–20 Retrieved 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Campbell University Campbellsville University Carson-Newman University Central Christian College of Kansas Charleston Southern University Colorado Christian University Columbia International University Concordia University-Irvine Corban University Cornerstone University Covenant College Crown College Dallas Baptist University 51 153250 224527 165644 212133 139630 217998 177339 101189 205957 114813 155089 212656 208822 165936 150677 145372 177542 225247 107044 120537 191676 225399 225548 150941 151801 107141 220473 101541 146339 157100 220516 171881 220613 226231 117104 146667 219976 159568 Dordt College East Texas Baptist University Eastern Nazarene College Eastern University Emmanuel College Erskine College Evangel University Faulkner University Franciscan University of Steubenville Fresno Pacific University Friends University Geneva College George Fox University Gordon College Grace College and Theological Seminary Greenville College Hannibal-LaGrange University Hardin-Simmons University Harding University Hope International University Houghton College Houston Baptist University Howard Payne University Huntington University Indiana Wesleyan University- Marion John Brown University Johnson University Judson College Judson University Kentucky Christian University King University Kuyper College Lee University LeTourneau University Life Pacific College Lincoln Christian University Lipscomb University Louisiana College 52 203775 213996 199458 155520 176053 178244 199032 204194 209287 174437 218441 147679 209409 142461 236133 154101 194161 201964 207403 207324 147828 207582 136330 121150 121309 138868 231651 194958 102049 112084 236577 123457 137564 206862 217776 179326 228325 207856 Malone University Messiah College Mid-Atlantic Christian University MidAmerica Nazarene University Mississippi College Missouri Baptist University Montreat College Mount Vernon Nazarene University Multnomah University North Central University North Greenville University North Park University Northwest Christian University Northwest Nazarene University Northwest University Northwestern College Nyack College Ohio Christian University Oklahoma Baptist University Oklahoma Christian University Olivet Nazarene University Oral Roberts University Palm Beach Atlantic University Pepperdine University Point Loma Nazarene University Point University Regent University Roberts Wesleyan College Samford University San Diego Christian College Seattle Pacific University Simpson University Southeastern University Southern Nazarene University Southern Wesleyan University Southwest Baptist University Southwestern Assemblies of God University Southwestern Christian University 53 172334 155937 155973 152530 454184 141185 221892 149505 149514 226471 101693 174491 219383 188182 216542 123651 236896 210304 138275 125727 149781 237066 122728 107877 240338 181853 Spring Arbor University Sterling College Tabor College Taylor University The King’s College Toccoa Falls College Trevecca Nazarene University Trinity Christian College Trinity International University University of Mary Hardin-Baylor University of Mobile University of Northwestern-St Paul University of Sioux Falls University of the Southwest University of Valley Forge Vanguard University of Southern California Walla Walla University Warner Pacific College Warner University Westmont College Wheaton College Whitworth University William Jessup University Williams Baptist College Wisconsin Lutheran College York College 54 Appendix B Institutions Excluded from the Study Unit ID 156222 178697 224305 114840 165945 N/A 486901 147369 440396 455770 Institution Name Asbury Theological Seminary College of the Ozarks Dallas Theological Seminary Fuller Theological Seminary Gordon-Conwell Theological Seminary Kilns College Milligan College Moody Bible Institute New Saint Andrews College Providence Christian College ... statistically significant relationship between student loan debt and tuition discounting at faith-based institutions Further exploration of the effect of published tuition price on this relationship. .. inform student attitudes toward their debt Student debt and related behaviors Student loans help students to supplement the costs of attending college, but the resulting debt impacts students... discounting and student loan debt Further exploration then points to the possibility that, as an institution’s published tuition price increases, the relationship between tuition discounting and student