Finder, Alan (January, 2006). “Aid Lets Smaller Colleges Ask, Why Pay for Ivy League Retail?” The New York Times.

OVERVIEW:

For Lindsey Mackney of Meadville, PA, the prospect of attending prestigious BostonUniversity would come at the price of $31, 530 a year, and no financial aid. By contrast, the smaller, liberal-arts focused AlleghenyCollege presented her with a scholarship that would cut her tuition costs in half.

The situation may illustrate a practical problem for talented young students, but one that is increasingly becoming an innovative opportunity for good colleges that are often off the radar. The best universities and private colleges are simply too expensive for many of today’s top high school graduates. They’re also not in a position to offer merit scholarships, since each matriculating class would present too many plausible candidates. But with smaller liberal arts colleges the lack of national reputation need not prevent them from drawing top students.

Many such colleges, says Finder, are offering more and more merit scholarships, especially in the Midwest. Distinct from traditional need/family-based aid packages, these awards give students and their parents a decision-making factor that is hard to overlook. According to Finder, the amount of money granted in merit scholarships nationally blossomed from $1.2 billion in 1994 to $7.3 billion in 2004. Margaret Drugovich, Vice President of admission and financial aid at OhioWesleyanUniversity in Delaware, describes the phenomenon as “designer education at a discount price.”

Her belief is that if prospective high-achieving students can be led to recognize the high quality of education awaiting them at a smaller, more local school, and if the price is more suitable to their means, then the decision is an easy one. Middle and even upper-middle class families simply can’t afford the prestigious schools anymore. Smaller schools can be more targeted in their strategic awards. Allegheny, for example, grants $23 million a year in need-based and merit scholarships from its $75 million annual budget.

But the stream of merit-scholarship money is not endless. Most smaller schools lack large endowments, and the reduction in tuition so central to recruiting efforts comes at an obvious cost. An advantage/risk decision has to be made.

In many cases the size of smaller colleges, combined with a handsome award package, makes for a good draw for incoming students. The luster of Ivy-league schools, for example, is less competitive for students who recognize they can get the education they want at a better price. The question that remains to be explored, however, is what impact this will have on the smaller schools in the long run?

Questions for Reflection and Discussion:

1.      If you are a parent or counselor of a soon-to-be high school graduate have you considered applying for merit-based scholarships at smaller liberal arts colleges?

2.      Is your child/teenager aware of the average costs of college tuition?

3.      Is this a possible factor in his/her decision of where to attend?

4.      How have talented students faired at smaller liberal arts schools?

5.      Do they feel they have received an education comparable to what would have been offered at a more prestigious, though expensive, school?

Implications:

The financial burden of a college degree is overwhelming. But what is hopeful about this article is the indication that prestige-branding may be losing its grip on how we think about the quality of secondary education. Strong liberal arts colleges typically off the radar of ratings lists may indeed be a great resource for talented students – academically and financially.

Christopher S. Yates cCYS