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Colleges taking another look at value of merit-based aid
Good grades and high test scores still matter - a lot - to many colleges as they award financial aid.
But with low-income students projected to make upan ever-larger share of the college-bound population in coming years, some schools are re-examining whether that aid, typically known as merit aid, is the most effective use ofprecious institutional dollars.
George Washington University in Washington, D.C., for example, said last week that it wouldcut the value of its average merit scholarships by about one-third and pare the number ofrecipients, pouring the savings, about $2.5 million, into need-based aid. Allegheny College inMeadville, Pa., made a similar decision three years ago.
Now, Hamilton College in Clinton, N.Y., says it will phase out merit scholarships altogether. Nocurrent merit-aid recipients will lose their scholarships, but need-based aid alone will beawarded beginning with students entering in fall 2008.
Not all colleges offer merit aid; generally, the more selective a school, the less likely it is to doso. Harvard and Princeton, for example, offer generous need-based packages, but plenty offamilies who don't meet need eligibility have been willing to pay whatever they must for a big-name school.
For small regional colleges that struggle just to fill seats, merit aid can be an importantrevenue-builder because many recipients still pay enough tuition dollars over and above thescholarship amount to keep the institution running.
But for rankings-conscious schools in between, merit aid has served primarily as a tool torecruit top students and to improve their academic profiles. "They're trying to buy students," says Skidmore College economist Sandy Baum.
Re-evaluating aid
Studies show merit aid also tends to benefit disproportionately students who could afford toenroll without it. That's where demographics enter the picture.
"As we look to the future, we see a more pressing need to invest in need-based aid," saysMonica Inzer, dean of admission and financial aid at Hamilton, which has offered meritscholarships for 10 years. During that time, it rose in US News & World Report's ranking ofthe best liberal arts colleges, from 25 to 17.
Merit aid, which benefited about 75 students a year, or about 4% of its student body, at a costof about $1 million a year, "served us well," Inzer says, but "to be discounting the price forfamilies that don't need financial aid doesn't feel right anymore."
Need-based aid remains by far the largest share of all student aid, which includes state, federaland institutional grants. But merit aid, offered primarily by schools and states, is growingfaster, both overall and at the institutional level.
Between 1995-96 and 2003-04, institutional merit aid alone increased 212%, compared with47% for need-based grants, a study by Pennsylvania State University professor Donald Hellersays. At least 15 states also offer merit aid, typically in a bid to enroll top students in thestate's public institutions.
But in recent years, a growing chorus of critics has begun pressuring schools to drop thepractice. Recent decisions by Hamilton and others may be "a sign that people are starting torealize that there's this destructive competition going on," says Baum, co-author of a recentCollege Report that raises concerns about the role of institutional aid not based on need.
A fast 'merry-go-round'
David Laird, president of the 17-member Minnesota Private College Council, says many of hisschools would like to reduce their merit aid but fear that in doing so, they would lose topstudents to their competitors.
"No one can take unilateral action," says Laird, who is exploring whether to seek an exemptionfrom federal antitrust laws so member colleges can discuss how they could jointly reduce meritaid. "This is a merry-go-round that's going very fast, and none of the institutions believe theycan sustain the risks of trying to break away by themselves."
A complicating factor, he and others note, is that merit aid has become so popular withmiddle-income families, who don't qualify for need-based aid, that many have come to dependon it. And, as tuitions continue to increase, the line between merit and need blurs.
That's one reason Allegheny College doesn't plan to drop merit aid entirely.
"We still believe in rewarding superior achievements and know that these top-notchstudents truly value the scholarship," says Scott Friedhoff, Allegheny's vice president forenrollment.
Emory University in Atlanta, which boasts a $4.7 billion endowment, meanwhile, is takinganother tack. This year, it announced it would eliminate loans for needy students and capthem for middle-income families. At the same time, it said it would expand its 28-year-oldmerit program.
"Yeah, we're playing the merit game," acknowledges Tom Lancaster, senior associate deanfor undergraduate education. But it has its strong points, too, he says.
"The fact of the matter is, it's not just about the lowest-income people. It is the averageAmerican middle-class family who is being priced out of the market."
A few words about merit-based aid: 1
Merit-based aid is aid offered to students who achieve excellence in a given area, and isgenerally known as academic, athletic and artistic merit scholarships.
Academic merit scholarships are based on students' grades, GPA and overall academicperformance during high school. They are typically meant for students going straight tocollege right after high school. However, there are scholarships for current college studentswith exceptional grades as well. These merit scholarships usually help students pay tuitionbills, and they can be renewed each year as long as the recipients continue to qualify. In somecases, students may need to be recommended by their school or a teacher as part of thequalification process.
A few words about merit-based aid: 2
Athletic merit scholarships are meant for students that excel(突出)in sports of any kind, fromfootball to track and field events. Recommendation for these scholarships is required, sinceexceptional athletic performance has to be recognized by a coach or a referee(裁判). Applicants need to send in a tape containing their best performance.
Artistic merit scholarships require that applicants excel in a given artistic area. This generallyincludes any creative field such as art, design, fashion, music, dance or writing. Applying forartistic merit scholarships usually requires that students submit a portfolio(选辑)of some sort, whether that includes a collection of artwork, a recording of a musical performance or avideo of them dancing.
注意:此部分试题请在答题卡2上作答。
46. Private colleges like to see merit aid reduced according to David Laird.
47. Many students from middle-income families have come to rely on merit aid so AlleghenyCollege plan to drop merit aid entirely.
48. Annual renewal of academic merit scholarships depends on whether the recipients remainqualified.
49. Applicants for athletic merit scholarships need a recommendation from a coach or areferee who recognizes their exceptional athletic performance.
50. With more and more low-income students pursuing higher education?a number of collegesare revising their financial aid policies.
51. Allegheny College in Meadville cut its merit based aid to help the needy students threeyears ago.
52. The chief purpose of rankings-conscious colleges in offering merit aid is to attract goodstudents.
53. Monica Inzer, dean of admission and financial aid at Hamilton?believes it抯 not right to giveaid to those who can afford the tuition.
54. In recent years, merit-based aid has increased much faster than need-based aid due tofierce competition among institutions.
55. Applicants for artistic merit scholarships must produce evidence to show theirexcellence in a particular artistic field.