<p>It is called tuition discounting. The schools call it merit aid to make the parents and families feel better. All but the top LACs do it. If they did not, many of these LACs could not even come close to filling their freshman quota.</p>
<p>The average tuition discount for the LACs in the stae of Iowa is 60%, highest in the country. None of these schools have large enough endowments to cover the lost revenue from the discount. But they have no choice, either offer these discounts or close up.</p>