They also list a tuition of a certain amount on the application, but she said it would be 40% right off the bat. I happen to know that 40% rate is what most people pay. What's that all about? Is that how private schools work?
It is known that at many private colleges below the top tier, very few students pay the list price. It sounds silly to list a price of $50K and give almost everyone a $20K scholarship -- why not charge $30K? But parents and students appear to value the feeling of having won a "scholarship" and the ability to tell their friends that they have done so.
In 2012 JC Penney decided to move away from frequent sales and toward "everyday low prices". The strategy was a disaster, and the CEO who pushed the change was fired. People want to feel that they are buying on sale, even if the net price is high.