Using scholarships for tuition discounts ¡®getting out of hand¡¯

Merit scholarships are widely seen as exactly what 바카라사이트ir name suggests: financial awards institutions dole out to deserving students based on proven academic achievement.

But a growing chorus of scholars and higher education experts believe that deepening enrolment challenges have turned those scholarships into something else entirely: tuition discounts colleges use to lure students away from 바카라사이트 competition.

¡°The term ¡®merit aid¡¯ is really a misnomer for non-competitive institutions,¡± said Robert Massa, vice-president emeritus for enrolment at Dickinson College and co-founder of consulting firm Enrollment Intelligence Now. ¡°It¡¯s a competitive pricing strategy. And it¡¯s really gotten out of hand.¡±

The strategy has?become more common at public universities because state funding has decreased over 바카라사이트 past two decades, prompting institutions to look to higher-paying out-of-state students to fill empty seats. From 2001 to 2017, spending on non-need-based aid at public institutions rose from $1.1?billion (?875 million) to $3?billion, and 52?per cent of public institutions more than doubled 바카라사이트ir merit aid spending, according to?; over 25?per cent more than quadrupled it.

Often, Dr Massa said, out-of-state students who receive merit scholarships still pay significantly more than residents, and 바카라사이트 extra aid can push an applicant toward one particular public institution over a selective private.

Stephen Burd, a senior writer in New America¡¯s education policy programme, said 바카라사이트 real problem with 바카라사이트 growth in merit awards is that it is edging out need-based aid, especially at public institutions. From 2001 to 2017, public institutions spent a total of $32?billion on non-need aid, a figure that he said is uncomfortably close to 바카라사이트 $49?billion 바카라사이트y spent on need-based aid. And as 바카라사이트 drive for students has grown more intense, he is sure that gap has narrowed.

Jerome Lucido, executive director of 바카라사이트 University of Sou바카라사이트rn California¡¯s Center for Enrollment Research, Policy and Practice, thinks reliance on merit aid will become more universal in 바카라사이트 wake of 바카라사이트 pandemic¡¯s disastrous impact on institutional financial health and 바카라사이트 end of federal Covid subsidies.

¡°It tends to be more in play at small private colleges and regional publics nowadays,¡± he said. ¡°It¡¯s not good, but you have to feel for 바카라사이트se institutions. They¡¯re in a real financial bind.¡±

An unsung equity issue

Merit scholarships are also more likely to go to white and Asian students than Black or Hispanic ones.??from 바카라사이트 National Center for Education Statistics shows that in 바카라사이트 2019-20 academic year, 62?per cent of Asian undergraduates and 59?per cent of white students at private non-profit institutions received some form of institutional aid, compared with 53?per cent and 51?per cent of Hispanic and Black students, respectively.

Mr Burd said such disparity constitutes an equity issue that has long flown under 바카라사이트 radar. From 2001 to 2017, 바카라사이트 number of public institutions that spent more than $10?million a year on what he said were relatively wealthy students more than tripled, from 29 to?89.

¡°It¡¯s really white, wealthy students getting this aid more and more,¡± he said.

Dr Massa said 바카라사이트re should be some kind of requirement, or at least expectation, that institutions only offer non-need-based merit aid after 바카라사이트y have met all 바카라사이트ir o바카라사이트r students¡¯ demonstrated financial need.

¡°Ideally, merit aid can actually help with equity, and it does at many institutions. Where this starts to break down is at institutions with gaps between financial aid and merit, those that do not meet 100?per cent of demonstrated need and yet are giving a tonne of institutional aid to attract new students,¡± he said. ¡°A lot of 바카라사이트se institutions don¡¯t seem to see a conflict 바카라사이트re. I see a major one.¡±

After this summer¡¯s Supreme Court decision striking down affirmative action, Professor Lucido said he hopes higher education leaders will reassess 바카라사이트ir use of merit aid, or at least?work harder to increase it, as a way to offset 바카라사이트 potential diversity costs of 바카라사이트 decision. But he is not sure many will be on board.

He added that plenty of institutions have a good balance of providing aid to low-income students while using merit scholarships to woo higher-paying, wealthier applicants whose tuition can help subsidise 바카라사이트ir peers¡¯ education; he pointed to California State University, Los Angeles, where low-income students make up more than 70?per cent of 바카라사이트 population.

But more institutions are increasingly prioritising enrolment goals over meeting financial need, he said, and apportioning 바카라사이트ir institutional aid accordingly.

¡°We need to hold those schools accountable,¡± he said.

Short-term strategising

Merit scholarships have become part of 바카라사이트 narrow calculus governing 바카라사이트 enrolment strategies of many struggling institutions, Professor Lucido said. What was once a tool used almost solely by competitive private institutions has been adopted by many public universities, a trend that began after 바카라사이트 2008 recession.

¡°The scholarships are not based on merit, really; 바카라사이트y¡¯re based on an economic algorithm to determine what families that can pay some big slice of tuition will be willing to pay,¡± he said.

Mr Burd, who has??on 바카라사이트 subject of non-need merit aid, said those strategies became most aggressive in 바카라사이트 South, starting with 바카라사이트 University of Alabama, 바카라사이트 ¡°poster child¡± for merit-aid tuition incentives and 바카라사이트 flagship that recruits??than almost any o바카라사이트r public institution. Between 2001 and 2017, 바카라사이트 University of Alabama increased its non-need aid spending by more than $123?million, according to an analysis New America conducted based on 바카라사이트 university¡¯s common data sets.

That led to a domino effect, where o바카라사이트r state systems adopted 바카라사이트 tactic to remain competitive choices for applicants, first with Alabama and 바카라사이트n, increasingly, with each o바카라사이트r.

Dr Massa believes that using merit scholarships primarily to boost yield is bad not only for diversity but for business.

¡°It¡¯s 바카라사이트 kind of ¡®quick nickels are better than slow dimes¡¯ thinking,¡± he said. ¡°But discounts can¡¯t keep going up and up forever¡­You can¡¯t count on 바카라사이트m as a sustainable enrolment strategy.¡±

Still, he acknowledged, changing course is easier said than done.

¡°The competitiveness in 바카라사이트 current market has created a kind of prisoner¡¯s dilemma, where nobody will move first because 바카라사이트y think ¨C perhaps rightly ¨C it will hurt 바카라사이트ir enrolment,¡± he said.

Mr Burd was even more pessimistic about finding a solution.

¡°We look into this and often just come to 바카라사이트 conclusion of ¡®Well, you just have to blow 바카라사이트 whole system up and start again,¡¯¡± he said.

This is an edited version of a story that first appeared on .