<p>Lower acceptance rates are in the final analysis a function of higher numbers of applications. A higher ranked school will probably get more applications and thus its selectivity will increase. High selectivity rankings tend to self-perpetuate.</p>
<p>But there are many aberrations within USN&WR’s National University category. Numerous schools rank ahead of AU but admit higher percentages of applicants. #35, Georgia Tech, is a great school with a strong tradition but admits 60% of its applicants. Case Western is #41 but admits 73%. Tulane, a private with a strong reputation, admits only 27% but ranks 50th.</p>
<p>My read? The rankings should be taken with a grain of salt and exist primarily to sell magazines.</p>
<p>How is American’s endowment? I ask only because S got a lot less FA here than he did at other schools. The merit scholarship was helpful but came at the expense, I’m afraid, of need-based aid. He got a ton more grant aid from the school across town, but has his heart set on American for many good reasons so we’re going to try to make it work. Just hope we’re doing the right thing…</p>
<p>AU’s endowment last April 30 was about $300 million, roughly $27,500 per student. That’s not a lot, but the school is still quite young. By comparison Georgetown – founded 1789, with a med school, and still clearly under-endowed – had about $900 million, or $58,000 per student. GWU, founded 1821 and also with a medical school, had an endowment of about $1.1 billion, or $41,000 per student.</p>
<p>If (as is customary) the three schools distribute about 5% of the value of the endowment each year, then Georgetown has <$3,000 in endowment income per student per year. All three schools are significantly under-endowed. Compare to Rice, which has over $500,000 in endowment – $25,000 per year – per student (but still awards only about $5,500 per year per student in financial aid).</p>
<p>I don’t know much about Rice, just picked them because their endowment is large and undergrad enrollment is small, then gathered that info quickly from their published data (I hope it’s correct). But let’s assume half the students who go to Rice don’t need any need-based aid at all. Then you’re up to $11,000 per year per remaining student. I imagine only a handful get a full ride. And I have no idea if loans are included in the $5,500.</p>
<p>Some schools have large endowments and award only a tiny amount of merit aid so they can use available $ to meet 100% of need without any loans. The tricky part for parents is in how need is calculated.</p>
<p>2/3 of students apply for need-based aid, but only about 2/3 of those are judged to have need. So about 40% of freshman receive need-based assistance. Presumably some of the 60% who don’t and the 40% who do get need-based aid get some merit aid.</p>
<p>Lots of full pays, still.</p>
<p>The $5,500 average I cited earlier took included all class years and post-grads in the denominator, and appears low for undergrads only. I imagine Rice’s aid stats are muddled a bit because of their Division I athletics and low enrollment. A high percentage of enrollment is likely benefiting from athletic scholarships, and I can’t tell how they are characterized or accounted for.</p>