May 25, 2007
Student-Aid Offers May Be Too Generous, Study Suggests
Colleges may frequently be overspending by offering students larger financial-aid offers than are actually necessary to entice them to enroll, according to a working paper released in May by three economists.
In a detailed examination of the admissions practices of two selective private colleges, the economists found that the colleges generally made larger financial-aid offers to students who were already highly likely to attend.
That practice contradicts scholars' typical
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