<p>*I am also inclined to think that the FA awards from some colleges that are “need” based can be set at differential levels according to the college’s interest in enrolling particular students. Can anyone provide information to support/refute this? *</p>
<p>Yes…the articles about Enrollment Management support that theory…here’s a blurb…</p>
<p>The Atlantic – College Monthly – November 2005 (online of Atlantic Monthly)</p>
<p>*
To decide how to parcel out financial aid, the enrollment manager puts admitted students onto a grid with need on one axis and academic ability on the other. This is called “segmenting the class” or “table analysis.” **The school then adjusts financial aid for students by group, with the goal of increasing the “yield rate” for the most desirable prospects—typically academic stars **and those willing to pay most or all of the tuition (“full-pays”). A school with a revenue problem puts its money toward rich students; a school that’s going after prestige pushes it toward students with high SAT scores. Where the school might be paying more than is necessary to attract a candidate (for a wealthy student with low grades, for instance, or an in-state student with few other options), aid is cut accordingly. Some schools are content to fine-tune their financial-aid packages for different groups by trial and error from year to year. But more-advanced enrollment managers, and all the major consulting companies, use a statistical method called logistical regression to determine how each group will respond to a different award, based on how students have behaved in the past. </p>
<p>One of the basic texts of enrollment management recommends a book about pricing techniques developed by the airlines: Revenue Management: Hard-Core Tactics for Market Domination. Using the logic of the Saturday-night stay and the fourteen-day advance purchase, advanced financial-aid leveraging goes beyond general categories to forecast how much each student is willing to pay, and guarantee the best class at the lowest price. Schools and consultants combine test scores, grades, and class rankings from the testing services and students’ high schools with demographic and financial data purchased from a credit-reporting agency such as Equifax. All this information is eventually reduced to the seven or eight variables that best predict a student’s responsiveness to price. </p>
<p>In the least desirable categories (usually poor students with lower test scores) accepted students are often “gapped”—given a fraction of what they would need to attend, even after the maximum possible contribution from their families. (A school interested mainly in revenue might even give more money to a wealthy student with lousy scores than to a better-qualified poor student.) Some schools leave gaps as high as $34,000 a year. From 1995 to 1999 the average unmet need for families earning over $60,000 either stayed constant or narrowed slightly; for families earning $40,000 to $60,000 it grew by three percent; and for families earning under $40,000 it grew by 27 percent. Some schools have no choice but to gap students once they’ve exhausted their aid budgets. Others will intentionally gap poor students so severely that they decide not to attend in the first place—or, if they enroll, the long hours of work-study and mounting debts eventually force them to drop out. Called “admit-deny,” this practice allows a college to keep poor students out while publicly claiming that it doesn’t consider a student’s finances when making admissions decisions.</p>
<p>“Admit-deny is when you give someone a financial-aid package that is so rotten that you hope they get the message: 'Don’t come,'” says Mark Heffron, a senior vice-president at Noel-Levitz, one of the largest enrollment-management consulting companies. (His financial-aid division currently has 140 clients.) Unfortunately, “they don’t always get the message.” When consulting for a school that gaps students to a point where they are likely to drop out, Heffron encourages schools to call students and tell them that unless they can find an additional source of money—such as a generous relative—they should decline the offer of admission.</p>
<p>However nasty, admit-deny allows schools to avoid the controversy associated with publicly abandoning need-blind admissions. That students are rejected on the basis of income is one of the most closely held secrets in admissions; enrollment managers say the practice is far more prevalent than most schools let on. </p>
<p>“Good luck getting any institution to tell you exactly how they handle ability to pay as a driver in their admit decision,” said one enrollment manager who requested anonymity. “What they will say is ‘We’re need-blind.’ That’s ********. They would never tell you exactly how they do it, but they do it all the time.” *</p>