I still need to read the original blog post that started this thread. But I saw the debate about what constitutes tuition discounting. Although I believed as @Mwfan1921 does that aid based on financial need was not the same as discounting, the College Board agrees with @circuitrider about financial need as part of discounting, and with @roycroftmom about governmental aid for public institutions. (Source)
(Image description: Defining Tuition Discounting
Tuition discounts have several components. The
largest component is general institutional grant aid,
which may be allocated either on the basis of financial
circumstances or according to other criteria. Some
of this aid is funded through restricted endowment
income or restricted gifts. However, much of the aid is
unfunded and is derived from the general revenues of
the college, which are composed primarily of student
tuition and fees, unrestricted endowment income or
gifts, and in the case of public institutions, state and
local funds.]