Today’s featured product: an eighteen-year-old female, with a 2300 on her SAT. She is the valedictorian of her high school class and captain of her varsity soccer team. Starting bid: $80,000. Penn pledges $90,000, Columbia offers $100,000. Sold to Princeton, for $160,000.
This is the appalling truth of college admissions–selection committees engage in what The New York Times labeled as bidding wars, to entice students with glittering financial aid packages.This ongoing game of tug-of-war prevents applicants from enrolling in the schools that best match their academic interests.
Surprisingly, the problem is both relatively recent and very preventable. Schools like Penn used to pool their data together and settle on one financial aid offer for each student instead of putting high school seniors’ brains on an auction block. “Some universities in the Ivy League took the position that if they all agreed on the financial need of the student, then the student would be making the choice not on how much the financial aid package was but on which university the student really wanted to attend,” according to Legal Studies Professor Janice Bellace.
In the past, such efforts occurred and were very successful–perhaps too successful for the government’s liking. According to a New York Times article from Mar. 1991, “Since the 1950’s, 23 of the most prestigious colleges in the United States have convened what they call “overlap” meetings to discuss financial aid for students who have applied to several of the schools.” The Department of Justice ended these meetings in 1991 because of alleged violations of the Sherman Antitrust Act.
Clearly, the government has decided that the future leaders of this country have no more human value than a pair of Jimmy Choos on eBay.
Together with other top private institutions, Penn must battle this federal intrusion and prioritize education without financial limitations. Applicants should not need to compare varying packages and schools should be confident that their students sincerely want to be there.
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January 10th, 2007 at 3:53 pm
Wow, I never realized that universities aren’t allowed to share that information. That’s really dumb. These private institutions should not be regulated against forming uniform aid packages.
Great job pointing out this idiocy.
January 10th, 2007 at 4:36 pm
The author is clearly not an economics major. The rules against collusion actually are not idiotic or appalling, but help students. Previously, schools would collude with one another and limit aid package. So, for example, for the 18 year old school would receive $90 for all the schools.
January 10th, 2007 at 10:47 pm
I don’t see what the problem here is? Kid A gets an Ivy education regardless and on top of that gets a huge financial aid package to help them through school. It’s no different from a salary war in real life, with companies bidding for your labour. The current situation is far superior to that previously employed by US colleges, hence the govt intrusion. Grow up!
January 12th, 2007 at 12:50 pm
Collusion in this case is not necessarily a bad thing. The author is correct in identifying the problem this bidding war may cause potential students. Like choosing a school based on US News rankings, many students also base their choices on the size of their Financial Aid packages. The problem here is not that they all get Ivy educations. We all know that some schools fit some better than others. For instance, I would hardly encourage a person who stresses out in large urban environments to attend Penn or Columbia.
January 15th, 2007 at 8:27 pm
Although financial aid plays a strong part in every high school senior’s decision, a student that smart should be able to make a mature decision as to whether she should do the fiscally right thing, or find the school that is right for her. Nonetheless, I totally agree that it’s sad that colleges are reduced to “bidding” for promising prospectives and that smart students are willing to “sell” themselves to the highest bidder rather than find the college that is right for them.