MORE COLLEGES RECRUITING WITH MERIT SCHOLARSHIPS

"Parents seem to be getting the message that negotiation is a key factor in landing the best aid awards." Gail Faulkner, a counselor at the North Carolina School of Science and Mathematics made this statement to The Chronicle on Higher Education for their 2/5/99 story on 'Competition in Financial Aid.' She is right and colleges are changing the way the recruit students using need and merit based aid as a result.

For parents and students this may be one of the most encouraging trends in higher education. The ability to compare financial aid offers and negotiate between colleges is a positive step in making the financial process more consumer oriented. At some colleges, students are being encouraged to negotiate their aid package. At Carnegie Mellon University in Pennsylvania, the financial aid office invites students to send in better offers from other colleges. The competing offers are run through a computer program that compares different factors. William Elliot, Enrollment VP, says, "I'm making a market call: What's it going to take to get that student to think more seriously about Carnegie Mellon?" Carnegie Mellon increased awards to 460 of the 800 students who submitted competitive offers and more than half of those students enrolled.

At Swarthmore College, 120 student had $2,000 in loans replaced with $2,000 in institutional grants as an incentive for them to attend, a possible savings of $17,000 over four years. These were students that Swarthmore was eager to enroll. Half were students of color. In 1998, The University of Pennsylvania replaced $2,000-4,000 in student loans with grants for 90 of the most qualified applicants. The California Institute of Technology has began offering merit-based scholarships to entice students where in the past, only need-based aid was provided. Stanley Hudson who oversees financial aid policy at M.I.T. says, "It's clear people (aid offices) are making more lucrative offers because of the competitive stuff." Continued on page 6

 National Merit Scholars Reap Reward

According to The Chronicle of Higher Education, 2/26/99, The following are the top six colleges, who providing the highest percentage of institutional aid to National Merit Scholars.

New York University..97%
U. of Florida ...............89%
U. of S. Carolina .........88%
U. of Kentucky ...........87%
Carlton College ...........86%
U. of Kansas ...............86%

The negotiating trend is growing in the Pacific Northwest as well. According to Kay Soltis, Director of Financial aid at Pacific Lutheran University, more families are writing special circumstances letters than ever before. These letters provide a more complete picture of family financial circumstances and often mention competing offers from other colleges. With high profile colleges like M.I.T and the University of Pennsylvania leading the way, smaller colleges are concerned about the effects on their ability to recruit top students. These smaller or lower-profile colleges will have to offer even better aid packages to keep the most desirable students.

The negotiating process for parents and students is becoming far more direct. To take full advantage, parents and students should take the following steps:

1. Prepare a special circumstances letter to be sent to each financial aid office. The letter should provide a realistic picture of the family's expenses and ability to contribute. It should also note which colleges have accepted the student and offer to provide aid offers for comparison.

2. Include several hungry colleges on the list for admission and financial aid applications. Hungary colleges can be identified by the amount of un-solicited marketing materials they send to the student. These offers can be used in negotiating with other colleges.

3. Compare offers carefully. What percent of the package is grants and scholarships compared to loans or work study? Does the offer meet 100% of the student's financial need? Not all colleges do (see the 'Needs Formula' article on page 7). Are the grants and scholarships renewable if the student maintains required grades or is it a one-year offer? Will the college allow any additional private scholarship dollars to replace loans and workstudy first? Send copies of competing offers to financial aid directors so they can see for themselves.