Regardless of politics, well-off parents think their kid is entitled to money from colleges or universities if they have good to great grades.
Entitled. To. Free. Money.
They deserve it. They’ve earned it. It’s theirs.
Who put this idea in people’s heads that if you do what you are supposed to do, study hard, and get good grades that the universe will reward you with cash for college?
Colleges and Universities!
They all want the “best and the brightest,” the most academically gifted, and the best-prepared students. Why? Because it is good for the school's reputation, they are easier to teach, they require fewer resources, and they make for better future donors.
Merit scholarships—I’m talking about non-need based, those that are just about grades and test scores and are not connected to financial need— are about the school, not the student.
While collees and universities go out of their way to show they care about diversity, equity, and inclusion—and make sure plenty of diverse faces are on their Web site and brochures—they dump a truckload of money in the laps of rich (mostly white) kids. (This is on top of a ton of financial advantages for wealthy families and higher ed tax breaks.)
A 2020 report shows that:
[T]he 339 public universities [examined] spent nearly $32 billion of their own financial aid dollars on students who lacked financial need from 2001 through 2017. During this period, $2 out of every $5 these schools provided in institutional aid went to non-needy students—those whom the federal government deems able to afford college without financial aid.
That’s $2 for well-off kids, $3 for poor kids.
Oh, and we love them for it.
Because if you are reading this—odds are I’m talking about your children.
And, unless you are really loaded—$2k to $5k a year is real money. You want that discount because college is way too expensive, and any little bit helps.
Let’s face it; if your household is pulling down $150,000 a year (slightly more than double the median household income and putting you in the 80th percentile of all U.S. households) and you have a mortgage, two car payments, and fork out for the kid’s traveling soccer team—you are stretched thin! You don’t have the cash to write a $30,000 check or more every year to cover college costs. A total of $8k to $20k savings is huge!
Because state lawmakers have cut higher ed funding; you don’t want to pay more taxes; colleges, and universities have zero incentive to change and charge less, we remain obsessed with college status; merit students are most likely to complete college and get accepted to graduate, medical, and law school (which also looks good for institutional rankings); and there is an entire ecosystem of vested interests in the status quo—then, why not throw well-off kids—those that have had all the advantages—a little cash.
It’s Not Personal, It’s Business
Trust me, colleges and universities wouldn’t do it if they didn’t have to. You know who will go out of state faster than a speeding bullet—students who can afford it. It’s all about the Benjamins.
For example, if a state college or university loses 100 students that pay $30,000 in tuition, room, and board, that’s a revenue loss of $3 million a year and $12 million over four years. If you pay $500,000 in merit scholarships annually but wind up keeping keep $2.5 million and $10 million, respectfully—it’s a good business decision.
But it’s a bad moral one.
The reward of education isn’t education; it’s scholarship money.
It’s no wonder the majority of people think the reward for a college or university degree isn’t about developing a nuanced, broader, and richer understanding of the world or having a more satisfying life; it’s the credential that gets you a higher-paying job that buys you happiness.
College and university faculty and administrators bemoan that students don’t appreciate the value of education for education's sake. Well, they are major contributors to the problem.
Parents have argued that their kids wouldn’t do as well in high school if they didn’t have the scholarship threat hanging over their heads.
Yeah, right.
Where is the control group for that claim?
Psychology of Desire
Applying for college and university admittance is like applying for jobs—it is often incredibly demoralizing.
Nameless, faceless people decide your fate. You think you know the rules but are never sure—the more selective the institution, the worse the guessing game.
Do they want me? Am I good enough? Do I do everything right? If I don’t get in, what does that mean for my future?
If selected, the university is doing the student a favor. A degree from a “good” college is a scarce commodity, and they are the gatekeeper. Get out of line, and they can kick you out. A future ruined. All the power is in the university’s court.
Instead of begging institutions to get in—like those gross and filthy community college transfer students, working adults, military veterans, and just decent students, none of which are “the best and brightest”—merit scholarship recipients are not only admitted but wanted.
Knowing that someone or someplace wants you is incredibly powerful.
The bigger the scholarship, the bigger the psychological boost. And, of course, the greater the bragging rights. Parents love to drop that their kid got an academic (merit) scholarship, casually mentioning one school offered way more than another. (My goodness, what a great, inspiring, and creative parent you must be to have such talented offspring.)
For all the students that don’t feel like they belong at a college or university, merit scholarship recipients are told that not only do they belong, but the institution believes in them enough to invest in their success.
Add that to the advantage list.
Change?
Martin Kurzweil of Ithaka S&R and Josh Wyner of the Aspen Institute argue there is a way to stop this nonsense. The U.S. Congress can pass legislation that would allow colleges and universities to limit the amount of money they will make available in non-need-based financial aid. It would work like salary caps for professional sports teams.
Don’t hold your breath.
The donor class of politically connected and powerful would scream bloody murder and grab the pitch forks and torches (or, at the very least, light up Twitter and send very nasty emails). The scholarships are theirs. They’ve earned it! They deserve it! What would the kids do if you didn’t bribe them?!?
To put a bigger nail in that coffin, it would directly impact the pocketbooks of Congress members.
Just like the home mortgage tax deduction, non-need-based merit scholarships are here forever.
Because we want them to be.
Too bad the money isn’t going to people that need it more than us.
Or, I don’t know, maybe use those billions to lower the price of college for everyone.
But where is the advantage of that?