They likely need to in order to stay afloat. They a 25% yield, less if you take out ED.
They likely give less merit ED so if so, that saves them money. So it’s a good marketing gimmick I think
I’m guessing their salaries are lower too.
But given some likely tour both, having better food and doems is a great way to flip some.
Carleton yield isn’t that much better - about 35% but they enrolled, per CDS, 507. St Olaf enrolled 859
So they have to find more applicants and admit and enroll greater amounts with a ‘lesser’ reputation.
So the school may not be as wealthy but using money and comfort features (dorm/food - like WUSTL does vs competitors)) - they have to hit a narrow target. They do have a strong A1 bond rating so they have borrowing capacity if needed.
But my guess is even though they are neighbors, they really have to execute well to compete. Carleton can get by, in many ways, on name alone