<p>With the Ivies and baby Ivies being the exception (as well as some others) is there a direct relationship between the size of an institution's endowment and thier generosity as regards "merit" aid. I often hear parents asking about endowment size in intro discussions preceding campus tours. Amongst schools giving merit aid does a healthy endowment translate to a better opportunity for merit aid? Has any parent out there been disappointed or pleasantly surprised owed to an institutions merit offer as it relates to a particular school's endowment?</p>
<p>The Ivies do not give merit aid as a matter of policy.</p>
<p>But there is definitely a relationship between their endowment and the proportion of the financial aid package that consists of scholarships rather than loans. The schools that have eliminated loans are the ones with big endowments.</p>
<p>Marian, </p>
<p>Did you read the OP's post? The OP was not asking about Ivies, presumably already knowing what you posted.</p>
<p>So, to answer the OP's question, I don't think endowment size and merit aid are at all connected. At most schools, merit aid is more a tool for financial yield management, if one believes the excellent Atlantic Monthly article of last year (two years ago?).</p>
<p>Also, the more relevant measure would probably be unrestricted endowment or even endowment per student. But getting those numbers is a lot of work.</p>
<p>A better way of looking at endowment is to view it as a kind of financial shock absorber.</p>
<p>From personal experience, I think that endowment does have an impact on merit aid offers. When I was collecting data for the schools my son was applying to I found the ones with the larger endowments offered more merit aid. For example, my daughters tiny private has a big endowment ($296,220,600) and son and daughter were both offered great finaid package. Son was accepted at Champlain college (endowment $5,854,276) and was offered next to nothing for financial/merit aid. This was pretty much the case with other colleges too. Big endowment= bigger financial offer. But, that was just our experience....</p>
<p>Sorry, newmassdad, I should have made clear that I wanted to explain exactly what it is about the Ivies that makes them an exception. Without that explanation, my post doesn't make much sense. Oops.</p>
<p>I keep reading that CMU's financial aid is so lousy because they are a younger school with a small endowment. And it's true that they don't give very much merit aid and a lot of their need based aid is loans. Whether it is related to endowment or not, I can only guess.</p>
<p>D was accepted to Trinity (SA) and received their largest merit award - 11K. They said they were working on getting their endowment up (over the next 3-5 years) so they could compete with other schools by giving larger merit awards to students.</p>
<p>I've seen no consistent evidence that (above $150 mil. or so) there is any clear relationship between endowment size and either merit or need-based aid. Some of the schools with the highest endowments have the smallest percentage of students on Pell Grants; some schools (like Occidental) have smallish endowments, and huge numbers of low-income students AND students on merit aid. Some schools with smallish endowments use the available funds to attempt to "buy" students who will help their overall reputation (and hence, in the long run, increase endowment size.)</p>
<p>All I've ever noticed is that schools that want to improve their incoming freshmen stats seem to give the most merit money - especially if they are a large public (guess they can offer free tuition to a few people without much impact to the school). </p>
<p>I think Katrina taught a bunch of schools that they can accept a few kids for free (at the last minute, even!) and have no impact on the school's finances. My niece got to go to Harvard for a semester, when Tulane closed. </p>
<p>Off topic - My own kids' small Catholic high school took in 8 Katrina kids from N.O. for free, yet the school always claimed that they couldn't give the faculty a tuition discount for their kids. Letting those kids come for free had NO impact on the school at all! (and, when the diocese of N.O. recently surprised our school with a check, our school wisely told them to keep the money.) In any event, this whole thing proved that our school (and probably any tuition charging school) can afford discounts for faculty kids. BTW... In any given year, there aren't more than 5 faculty kids in our school! This year, there is only one. )</p>