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<p>Allow me to try and elaborate with a different analogy: Colleges practice “yield management,” just like airlines do. Airlines want to fill every available seat and also get the most money they can from each passenger. They use mathematical models to try to optimize that yield, using historical data from previous passengers.</p>
<p>A college also wishes to fill every “seat” with the highest-stat kids available, while staying within its financial aid budget – while they may indeed accept full-pay students with slightly lower stats, they try to maximize the best stats from each group, full-pay and scholarship grant candidates. </p>
<p>Scholarship grant candidates, ideally, help the college fulfill multiple goals: there are plenty of poor students in this country, so priority will be given to 1. URMs; 2. athletes the school needs; 3. first-generation college students; 4. females in engineering (still very underrepresented) and finally 5. those with killer academic stats or significant awards or significant community service involvement. So your ideal “free ride” candidate will be a black first-generation-of-college female going into engineering who developed some significant inner-city community service project. As long as her academic stats hit close to the bottom 25% threshold of the class, this candidate will likely be accepted everywhere she applies.</p>
<p>The least desirable “free ride” candidate will be a poor white or Asian male with parents who went to college, who is interested in engineering, who had minimal community service involvement (perhaps because he had to work to help support the family) and whose academic stats only hit the mid-point of the incoming class. Poor whites or Asians with near-perfect academic stats will probably get into a top-25 school, but almost certainly not HYPSM, where the typical academic stats are so close to perfect that these candidates add little the school can’t already get from full-pay/half-pay families.</p>
<p>Yield management, however, is based on a mathematical model that uses historical data to make decisions. I think most of us have been stuck at airports or perhaps been offered money to be willingly bumped, because some unexpected factor caused the yield management results to go haywire.</p>
<p>By the same token, college yield management very likely assumes a certain growth rate in the number of applications per student. From an individual college’s standpoint, each HYPSM college might expect its percentage yield to fall slightly while colleges near the bottom of the top 25 or top 50 might actually see their yields rise for a few years since those that used to accept admission to higher-ranked schools find they can no longer get in to those colleges as acceptance rates plunge. Quite a few colleges this year have actually reduced the number of initial acceptances, implying that they expect higher, rather than lower yields.</p>
<p>However, as word continues to get out on how bad acceptance rates get, each new cohort of students increase their number of applications at an exponential growth rate. At the same time, the total number of different student applicants continues to fall. This creates a long-term potential air pocket. In the short run, however, let’s merely consider that the average student applying to a range of top competitive schools applied to 8 schools rather than 6 (a 33% increase). The chance of acceptance has dropped 10-12% due to tougher admissions standards, yet that will still leave the average competitive student with 20% more acceptances – not necessarily their top choices, but selective colleges none the less.</p>
<p>The system is not prepared for an overall decline of 20% in acceptance yields, which will be much higher for some schools. There could be a huge rush to admit the waitlist candidates, which will open up spots at other colleges, who will also be scrambling to take students off their own waitlists.</p>
<p>Since the number of students on the waitlist is much smaller than the number on the accepted list, and since colleges wish to fill every open seat, it is quite possible that this year (or next year or the year after), colleges will discover that their own yield management software went haywire and that they will have to accept one-third or more of the candidates who choose to remain on their waitlists.</p>