Refers to a financial aid strategy used by U.S. colleges and universities in which institutions reduce the published tuition price through institutionally funded grants, scholarships, or waivers to attract and retain students. The discount represents the difference between the sticker price (gross tuition) and the net tuition revenue that institutions actually receive. The practice allows institutions to use financial aid strategically, often redistributing tuition revenue from some students to subsidize others, based on financial need, academic merit, or enrollment management goals.

Tuition discounting is used as both an economic and enrollment management tool, designed to increase access, shape the student body, and maintain competitiveness in the higher education market

See Topic Brief: Student Financial Aid Models