Re: Class sizes increasing
[#permalink]
28 May 2009, 11:26
I could be wrong, but I don't believe that the additional $50k is what drives schools to increase class sizes. After all, tuition at most schools doesn't even come close to covering all of the costs. The rest is covered by donations, investments, and public funds. If a top b-school that has a $300-$400 million endowment lets in an additional 20 students, even at full tuition, that adds up to only an additional $1 million in revenue. The schools have to increase their own costs to accommodate those students in the form of additional faculty, larger facilities, etc. Also, I am sure the schools are aware of the possible drop in prestige related to higher acceptance % and lower % of grads with jobs, and the long-term ramifications associated with that, so they aren't going to suddenly expand the class by 20%.
Over the years, schools hire more professors, build larger facilities, and expand. I think that is reflective of a larger, more qualified applicant pool, not necessarily a need for a quick infusion of funds. More job opportunities are created as the economy expands as well, so in the short term a school's reputation might be damaged, but in the long term, that seems to wash away.