Monday, March 12, 2007

Scholarships: Not Just for the Needy Anymore

A growing number of top-notch schools have begun handing out thick wads of cash to households that may not appear to need it. Why? "Wealthier families, who have students who excel, are desirable because they prop up the school's profile in the college rankings, and they can also pay a significant portion of their education," says Deborah Fox, president of Fox College Funding in San Diego, a firm that advises higher-income families on strategies to apply for college funding.

A recent study by the nonprofit Education Trust found that at 50 state flagship institutions, the amount of grant aid pocketed by families making at least $100,000 jumped 406% from 1995 to 2003, while money earmarked for those with household incomes of less than $20,000 dropped 13%. "Many of these flagship institutions have become more and more enclaves for the most privileged of their state's young people," the study noted.

See the BusinessWeek Online article.

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