According to a recent report from New America, 339 public universities doubled their allocations for merit-based aid between 2001 and 2017. In many cases, doing so came at the expense of funding for need-based financial aid.
, author of the New America report, calls the dash to attract wealthier students — who are uniquely capable of boosting a school’s bottom line and prestige — the “merit-aid arms race.”
Some universities have been critical of the report’s methodology. Arizona State University is cited as having the third-highest increase in merit-based aid since 2001 —an ASU spokesperson called its rank in the report “misleading.
“When thinking about the overall effect of both [mid-tier and top-tier schools] on mobility, you kind of have to combine the first part, which I’ll label as access, and the second part, which I’ll label as success,” John Friedman, PhD, a Brown University economist and one of the authors of the 2017 report, told“Access is the quantity of students a school is affecting, and success is the quality of work the school is doing on those students.
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