A fat envelope arrives in the fall, temptation from a college your high school senior had not previously considered. Said letter offers the following, provided an application is completed: full, four-year tuition scholarship; partial grant towards room and board; and a laptop computer thrown in. Would you encourage your student to give serious consideration to this college, even if it is nothing like the colleges he or she had determined were the best matches? Such a letter from a state university recently piqued the interest of a colleague's student, although his previous focus had been on institutions of a very different type.
How did the university identify this student? Services offered by the College Board and ACT enable colleges to purchase mailing lists of students who meet their thresholds for test scores and grade point averages. Strong students who are open minded and not attached to the notion of attending a particular college may find loads of affordable options this way.
Here's a very different scenario: your child applies to a college where annual billed charges total $45,000 per year. You apply for financial aid, but the college responds with what is known in admission parlance as an "admit/deny" letter. In other words, she is admitted to the college but denied financial assistance. While disappointing, it's no problem if the college is not a top choice for her. But what if the college is her top choice and you, as parents, feel it is the best possible match for her among the colleges offering admission? Perhaps the decision to choose a less expensive school would not be so simple. Some families would consider taking out loans, or ask family members to contribute, or conjure up other financial solutions as they stretch to make their child's dream a reality.
Welcome to college admissions as Priceline. While technically no auction zone exists, colleges are increasingly utilizing merit scholarships to attract students who might not otherwise choose them. Some colleges are putting sharp limits on or even denying financial assistance to those at the margin of admissibility, students who may seek the prize of attendance most of all, just as airlines charge according to a customer's desire to book a certain flight. The days of flat tuition charges are over for the vast majority of colleges; discounting to achieve the right headcount and balance is here to stay.
In this world, many students go to the highest bidder. That's right: as a result of financial strain, students from families that cannot afford to pay the amount estimated for their family contribution, or will not, may go to the highest bidder or to a far less expensive public alternative, with issues of great fit sometimes taking a back seat. Happily for students strong enough to compete for admission at colleges with enormous endowments, the highest bidder may turn out to be their top choice; these colleges continue to meet fully demonstrated financial need for all who are admitted. One Ivy League university has already reported a significant increase in the number of early action applications received this fall, which may be a reflection of the institution's generous financial aid policy.
Most colleges today do not have enormous endowments, however, nor are most renowned worldwide. Most colleges struggle to meet their enrollment and revenue goals. With declining investment values, likely declines in annual giving from donors and likely declines in tuition revenues because of students' greater financial need, the philosophy of financial leveraging is widespread. Colleges focus resources in the form of scholarships - - a.k.a. tuition discounting - - most generously on the students who will make a noticeable or outstanding difference within the college community. Students who are not standouts may get less. Students who could just as easily have been denied admission as accepted may get the least of all.
Let your children know where your family falls on the Priceline spectrum. If cost is not a concern, they will be pleased to know of their good fortune. If cost is a concern, you and your children are well advised to consider options with eyes open and shake off your attachment to a narrow band of institutions you've heard of before. This will help you to move realistically through the college search and application process, arriving at a final consensus that makes sense for your family. Open your minds to a wider range of options, and you may be amazed by the possibilities.
Jane S. Shropshire guides students and families through the college search process, drawing on over a decade of college admission experience. Send questions or suggestions to JShrop@att.net or visit Shropshire Educational Consulting, LLC at www.ShropEd.net.