A New Financial Aid Plan: Altruism or Self-Interest?
Friday, December 14th, 2007
Periodically, a prominent college or university will gain notice by virtue of announcing bold new initiatives that are sure to improve the college-going landscape. In the last year alone, colleges dropped Early Decision programs, eliminated student loan programs in favor of new scholarships, and modified entrance test requirements–all in the interest of improving access while reducing the angst associated with college entrance. The problem with these announcements is that universities are adept at cloaking institution-specific enrollment strategies as social initiatives. Therefore, you must read carefully to appreciate just who is being served.
In doing so, you have probably noticed that “access” is a buzzword commonly associated with emerging initiatives. And why not? Access to post-secondary education is an important element of this nation’s social agenda. Thousands of underserved students who would benefit from a college education come up short when they fail to receive the support needed to complete the application process and/or secure the funds necessary to afford college costs. Presumably, then, initiatives in the name of “access” are targeting these areas of need. As such, they are greeted warmly–especially when they come from this country’s most prominent universities.
It happened again when Harvard University recently announced a plan to overhaul its financial aid program for undergraduates. Citing the need to improve access for students from middle income families–and to get a greater share of these students who are also admitted to public flagship universities–Harvard has determined that, for families whose incomes range up to $180,000, family contributions to student costs will not exceed 10 per cent of family income in a given year. The University will also remove home equity from calculations of family wealth and eliminate all loans from financial aid awards.
On the surface, the Harvard announcement reads well. An institutional leader–one of the most widely known and highly respected places on the face of the earth–steps forward with a bold new financial aid strategy to, you got it, create access. It sounds great. But before you add Harvard to your short list of colleges, read the fine print. “Where” and “how” will improved access be truly realized? Will this move–and the $22 million that it puts into play–make it possible for more kids to go to college? Will it even make a Harvard education more accessible to thousands of qualified students who dare to be encouraged by the promotional rhetoric? More importantly, how might it affect you?
In reality, this plan is not likely to inspire more middle-income students to go to college, so improving access to education isn’t a likely outcome. And, while more deserving middle-income students will probably apply to Harvard because of the financial aid plan, they must first be admitted before they can take advantage of it. As enticing as the new financial aid plan might be, it offers no assurance that qualified middle-income students will actually be among the 10% or so of students who apply and are admitted at Harvard.
So, take this plan–and the rhetoric that surrounds it–for what it is. In this case, all roads lead back to the institution and not the common good. While a relative handful of students and families might benefit, it is really the institution’s best interests that are being served as it seeks to attract and retain more students whose families fit Harvard’s new definition of “middle income.”
As promising as it might sound, this initiative means little to most students who are considering their college options. It is not going to reshape the social fabric of higher education and it certainly isn’t going to create access outside of the ring in which Harvard competes for students. The good news is you can experience quality options at scores of other colleges across the country. The best course of action, then, is to stay student-centered. Sidestep the distracting rhetoric raised by announcements such as this and focus on finding colleges that represent the best fit for you. Find your point of access by putting yourself into competition at places that will value you for what you do well.
During the December 19 (9 PM ET) installment of the Straight Talk About College Admission teleseminar series, I will go “Inside the Financial Aid Application Process” (9PM ET) with guest expert, Carl Buck. A long-time financial aid professional (Rice, UCLA, Rutgers) and author of Best College Deals, Carl is currently a Vice President at CHASE Bank. Join us to learn how you can make the financial aid process work for you. For more information and to register for the seminar, go to: http://www.theadmissiongame.com/teleseminar_registration.php
