Today’s Boston Globe has an article about a subject I reported on earlier. With the economy in tatters and the stock market plunging, college endowments have taken a serious hit at just the time when families are in need of greater financial assistance. This is placing a great deal of pressure on even the wealthiest insitution’s financial aid budgets.
While most colleges have publicly stated that financial aid continues to be held sacrosanct, the reality is that many schools are facing tough budgetary choices. Middlebury College recently announced that even financial aid is on the table as it looks to make budget cuts.
Full-pay students are going to look increasingly attractive to many schools struggling to balance the books. With most schools being need aware at least at the margins, it will be easier for wealthy students to gain admission to the school of their choice, while high-need students will face one more obstacle to economic and social mobility.