College Endowments-correlation to merit aid

Some may disagree with me- I have not posted in awhile so maybe this topic has been mentioned many times but I always preach that a merit award is somewhat in direct proportion to the size of the college endowment. For e.g. a large private NYC university that has a small endowment for its size is not known for providing generous merit aid/ scholarships. I say do your research before applying to a college /university if you are looking for a large merit aid award. The attached paper may help:

https://www.fas.org/sgp/crs/misc/R44293.pdf

In searching for merit aid, I’d first be looking here on CC to see what schools have reputations for giving lots of merit aid. I’d also be looking for merit aid possibilities based on my kid’s statistics. Looking for schools with large endowments relative to their size, and then looking through that list for good merit possibilities, seems like a lot of extra work.

Um, no, that’s not a good way to search for merit aid.

The best endowed universities give little or no merit aid.

I disagree with this premise. A number of privates and publics with smaller endowments have generous merit awards.

Yes it is true that some 2nd tier or third tier colleges with low endowments give out large amounts of merit aid but check back with them a few years after they implemented aggressive merit aid programs. All of a sudden they discover they no longer have the funds and so become stingey again. This is math- where do you think merit aid money comes from- full tuition payers? maybe I should have said the old fashioned scholarships rather than merit aid?

mom2collegekids- can you point me to any stats that you know of that confirms your point?

@songman You are referring to ENDOWED scholarships. As I said before the elite privates give little or no merit aid. It is all or virtually all need based grants. I know that this fact goes against your premise but you should not ignore it.

Are you sure that you’re not conflating merit aid with need-based financial aid? Because as TomSrOfBoston points out, many of the schools with the biggest endowments provide little to no merit aid.

ok correct me- a merit award that is not need based but rather based on academics that is a direct grant (no repyament required) that is NOT state or federal monies is not funded out of the college’s reserves or enndowment?

What???

That kind of merit award IS funded by the college reserves/ endowments , other pots of $$ such as sponsored National Merit scholarships , as well as by students who are paying full tuition.

Where do you think the $$ for merit scholarships comes from??


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maybe I should have said the old fashioned scholarships rather than merit aid?

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?

Old fashioned scholarships have been “merit aid.” Old fashioned scholarships were awards for academic excellence.

Can YOU point to stats that confirm YOUR point. Look at the top 20 schools with the biggest endowments? Where are their scholarships?


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ok, correct me- a merit award that is not need based but rather based on academics that is a direct grant (no repyament required) that is NOT state or federal monies is not funded out of the college's reserves or enndowment?

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In English, please.

My take on the above is that you’re describing merit based scholarship aid. In other words, I think you’re describing good old fashioned scholarships.

I think the OP is confusing GRANTS, which do not have to be paid back, but which are part of FINANCIAL AID awards at many top colleges [many with huge endowments], and Merit scholarships , which are given selectively to top students REGARDLESS of the financial need of the student.
The Ivys, Stanford, MIT, Caltech do NOT give out merit scholarships.
Many other colleges, including U of Chicago, Wash U, USC, Vanderbilt, etc, etc. do award merit scholarships.

OK- thanks to all---- but I did not make myself clear- if you are saying the HYP schools do not spend money from their endowments with direct aid that the student is NOT required to repay then I would love to know where they obtain the money. Outside scholarship funds and charitable trusts I guess? Also if it is true what you say, then the colleges with huge endowments should be ashamed of themselves in my opinion. But that is another issue.

Those $ DO come from endowment. They are NOT merit aid (your thread title). They are Financial Aid offered to lower income students. Hi income families don’t get any.

" if you are saying the HYP schools do not spend money from their endowments with direct aid that the student is NOT required to repay "
WHAT??
NO ONE IS SAYING THAT.
HYP, ETC ETC USE ENDOWMENT $$ TO HELP PAY FOR FINANCIAL AID THAT DOES NOT NEED TO BE REPAID. THAT KIND OF FINANCIAL AID IS CALLED A “GRANT,” AS OPPOSED TO A “LOAN”.
THEY ALSO USE ENDOWMENT $$ FOR BUILDINGS, PROFESSORS, RESEARCH, INVESTMENTS TO HELP PAY FOR ALL OF THE ABOVE, ETC ETC. ETC
GET IT??
sheesh…

ask questions in the future without the use of double negatives.

Erin’s dad- I am high income in the FAFSA world. My daughter and son both received merit aid (maybe they were called grants, not federal or state though, but I recall the schools using this term?). When I asked where the money was coming from both colleges stated from the college’s money/funds. NOT OUTSIDE SCHOLARSHIPS OR ALUMNI SCHOLARSHIPS ,Etc) So why are you saying it is offered to lower income students? I know plenty of high income families that recieved similar monies the same way…enlighten me please am I using the wrong term here?..

^^yes you are. merit $$ comes from the SAME pot of $$ as financial aid $$.
MERIT $$ is given to top students that the college wants to enroll.
GRANT $$ is financial aid $$ that does not need to be paid back and is offered by wealthier colleges to lower income students .

but BOTH COME FROM THE SAME POT OF $$.

Well obviously you know more than I do on the subject.

A shame though as I recall CC as a friendlier blog years ago- I am just tired of seeing so many kids apply to schools of their choice , gain acceptance, only to find out later on that the school offered loans and little direct aid/monies. It seems to me with a little more digging they could have avoided that issue. I assumed that it was due to low endowments. The school just does not have the funds, period. But you are all pros I guess on the subject.