Connect with us

Student Loans

College Admission Scandal: Symptom of a Larger Problem

Published

on

The college admission scandal that saturated the press this week made me think of a disturbing anecdote, which I heard last month, that blew my mind.

I want to emphasize that shocking me is tough to do since covering the higher-ed industry and it is very much an industry has made me quite cynical and disgusted about how the college admission process works.

College admissions is clearly rigged in favor of the rich and powerful against everybody else.

My conversation was with a mom, who runs in extremely elite circles. She told me about a friend of hers who was desperate to get her oldest child into a private high school in California that is known as a pipeline for elite universities.

When the private high school rejected the teenagers application, the mom and dad tried something different. Through an intermediary, the parents offered to donate $5 million to the school.

Bingo!!

Two hours after the offer was made, the teenager received an acceptance. (In case youre wondering, the parents didnt even try to bribe at a lower amount!)

College Admissions and the Wealthy

Extremely rich parents dont need to play by the rules and Im not just talking about lawbreakers!

Sadly, too many of these parents see their self-worth linked tightly to their own childrens success. And they define success in quite cramped and pathetic terms: the wow factor of the college sweatshirt that their kids will be wearing when the college hunt is finished.

Here are some thoughts on this problem:

Colleges favor students born on third base.

No admission directors were implicated in the schemes. College coaches were the ones who got caught. That said, admission directors do favor the wealthy and privileged.

An eye-opening 2017 article in The New York times documented this favoritism.

The article discovered that 38 elite schools, including some caught up in the current scandal, have more students enrolled from the top one percent of the income scale than from the entire bottom 60 percent.

If you check out the article, you can type in the name of any state or private college and see how many one percenters attend any institution that interests you.

Here is a screenshot that show the schools that attract the most one percenters:

Here is something else the The New York Times discovered:

Roughly one in four of the students in households with the top 0.1 percent of income attend an elite college universities that typically cluster toward the top of annual U.S. News & World Report rankings.

In contrast, less than one-half of one percent of children from the bottom fifth of American families attend an elite college; less than half attend any college at all.

The allure of full pays.

People gripe about affirmative action, but affirmative action overwhelmingly favors rich teenagers. You dont have to be as accomplished if mom and dad makes a lot of money.

Schools love to attract what they call full pay (I.e. rich) students. Most colleges must give these children merit scholarships to attend their schools, but the most elite dont.

These schools arent dummies they know that parents are desperate to get their kids into the U.S. News darlings and they will pay any price.

The super rich can start at the development office.

A book published back in 2006, and still very much relevant, captured many ways rich students are treated preferentially. He revealed, for instance, that some wealthy parents simply start the admission process by heading to the development office with promises of a hefty donation.

You may want to check it out:

The Price of Admission: How America’s Ruling Class Buys Its Way into Elite Colleges–and who Gets Left Outside the Gates

The author is Dan Golden, a journalist who won a Pulitizer Prize on the subject for The Wall Street Journal.

In a recent article in the Washington Post, Golden remarked that some rich parents treated his book as a how-to-guide to game the college admission system!

News articles since the current scandal broke suggests that the donation required for an easy admission at some elite schools has risen. A $10 million donation might not be a guarantee at some elite schools.

The thirst for prestige is insatiable.

Harvard and a few others could charge $1 million a year for tuition and they would still turn away most applicants.

Test-optional practices favor affluent families.

When colleges roll out test-optional policies, they like to emphasize that this will boost the diversity of their campuses.

That’s because SAT and ACT scores are highly correlated with income. Teenagers with a household income of $200,000, for instance, will, on average, have higher test scores than students whose parents make $150,000 and on down the income ladder.

Peer-reviewed research by my friend Andrew Belasco, the CEO of College Transition, however, suggests that colleges tend to be no more diverse than before they roll out their test-optional policies.

The practice, however, does benefit colleges by increasing applications and boosting published test scores. The practice also favors high-income students, who can pay full price while keeping their mediocre test scores private.

Here is my blog post from back in 2014 when the research came out:

Who Is Benefiting From Test-Optional Admissions?

There is a reason why schools inquire about parents.

Ever wonder why the Common Application wants to know the identity of the parents occupation and the colleges they are attended?

A parent who got an MBA at Harvard University and is now a venture capitalist is going to be more attractive to a school than a parent who got an associate degree and is a dental hygienist.

And schools can discriminate against those who need help. Parents are understandably freaked out by a question on the Common Aopplication that asks if the family intends to apply for financial aid.

No school would admit that answering yes to the aid question will jeopardize admission chances, but it certainly happens.

Don’t expect anything positive to happen.

Some people are hoping that this scandal will encourage schools to examine their practices that are so heavily weighted towards helping those who dont need it.

In an article in The Chronicle of Higher Education, Todd Rinehart, the vice chancellor for enrollment at the University of Denver, said that after the scandal broke he was encouraged to see many of his peers double down on their promises to examine and remove barriers to low-income students.

I wish I could be encouraged, but Im not.

The wealthiest universities in the country that could end legacy admissions and accept more normal students havent done it.

These institutions have always catered to the powerful and the wealthy. Despite what they say, its their mission.

Stop stressing!

Rich parents need to stop thinking that they have failed as a parent if their children dont attend an elite research university.

Conveying this attitude towards a child, even if its unspoken, is toxic. And, yes, heart breaking.

This, by the way, is only a preoccupation of parents from very affluent communities.

Learn more

If you want to learn more about this topic, The Chronicle of Higher Education has gathered what its staff has written in a special report. Some of it is only for subscribers, but a lot is available to anyone.

Admission Through the Side Door

Fight Back!

Okay, so you don’t have millions to get the attention of some Harvard big-wig. Big deal.

The best way to level the college admission playing field is to take my course – The College Cost Lab. Join now and you’ll start becoming a smart college consumer IMMEDIATELY!

 

The post College Admission Scandal: Symptom of a Larger Problem appeared first on The College Solution.

By: Lynn O’Shaughnessy
Title: College Admission Scandal: Symptom of a Larger Problem
Sourced From: www.thecollegesolution.com/college-admission-scandal-symptom-of-a-larger-problem/
Published Date: Fri, 15 Mar 2019 20:05:34 +0000

Continue Reading
Advertisement Attention Stock Investors

Student Loans

I SOLD A.I. ART ON ETSY FOR 30 DAYS! – A.I SIDE HUSTLE RESULTS

Published

on

Continue Reading

Student Loans

Apply Online For Student Loans

Published

on

Apply Online For Student Loans

Applying online for student loans is a convenient and efficient way to secure funding for your education. Whether you are facing financial difficulties or simply want to keep your debts to a minimum, student loans can help alleviate the financial burden while you focus on your studies.

One of the main advantages of student loans is that they typically offer lower interest rates compared to other types of loans. Additionally, repayment is often deferred until after you graduate, giving you time to establish your career and increase your income potential.

By applying online, you have access to a wider range of lenders, allowing you to compare different loan offers and choose the one that best suits your needs. Look for lenders offering competitive interest rates, flexible repayment terms, and any additional incentives that may be available.

Student loans can be used to cover various expenses related to your education, including tuition fees, housing, course materials, and living expenses. While your personal bank may be willing to provide a student loan, applying online gives you more options and potentially better terms.

However, it’s important to remember that student loans are still loans, and you should borrow responsibly. It’s advisable to budget regularly and avoid unnecessary purchases or luxuries to ensure you can manage your loan repayments in the future.

Before applying for student loans, explore other options such as scholarships, grants, or parental funding. These resources can help reduce the amount you need to borrow and minimize your financial obligations.

Lastly, it’s crucial to have confidence in your ability to secure a salary that will enable you to meet your loan repayments after graduation. Work hard to achieve the grades and qualifications necessary for your desired career, as this will increase your chances of finding a well-paying job.

In conclusion, applying online for student loans can provide you with the financial support needed to pursue your education. However, it’s important to borrow responsibly, explore other funding options, and plan for a successful career to ensure you can manage your loan repayments effectively.

Continue Reading

Student Loans

Webinar Recap: How COVID-19 is Affecting Financial Aid

Published

on

Many families are facing new financial challenges in light of the coronavirus emergency, and College Confidential has fielded dozens of questions on this topic recently. To address those queries, we hosted a webinar on April 9 entitled “Paying for College Amid Changes Due to the Impact of COVID-19.”


During the event, moderated by Aaron Murphy, manager of learning and development with Inside Track, the following panelists offered their perspectives on the issue:

  • Denise Trusty, director of financial aid with Morehead State University
  • Laura Reisert Kalinkewicz, associate vice president of college partnerships with RaiseMe
  • Amy Nelson, director of sales at International Scholarship and Tuition Services
  • Charlie Javice, founder and CEO of Frank.

Check out the following topics that the panelists discussed, along with their views of how things may unfold amid the financial challenges brought on by the coronavirus outbreak.

Family Finances Changed? Contact Your Schools

If you plan to start college in the fall as a freshman — or return to school as an existing student — and your financial situation has changed since you applied for financial aid, you should contact the colleges on your list immediately. Financial aid departments can consider appeals for more money, but must base these decisions on each individual student’s situation, Trusty said.

“I know with Morehead State, where I work, we will be doing professional judgement calls on all students who say they’ve been affected,” she noted. “We will reach out to those students to see what we can do to help them maybe obtain additional funding, additional grants, scholarships, whatever they would be eligible for. We do professional judgment all the time for our students, because things happen all the time. This year will be an especially large amount of those, I’m sure, but those are up to individual schools to make that call for their students.”

In addition, she added, the Department of Education has set aside over $6 billion for additional grants and scholarships that the universities will be able to use. “Currently, I don’t know how that’s all going to play into this,” Trusty said. “So that will be up to each individual university on how they lay those out. I know it will be beneficial, I just don’t know how available that will be to each student.”

Keep in mind that schools are accustomed to reviewing financial aid appeals, and they all have processes in place for to do so. “It is really, really important to know that schools typically leave a budget from 10 percent to 20 percent or so of their financial aid dollars for what would be called a professional judgment bucket,”Javice said. “Therefore, there is additional money to be had, and it’s up to you to request it. You should approach your school as soon as you know you might need more money, and be prepared to show supporting documentation demonstrating how your finances are different from when you filed your FAFSA initially. This might require proof of a job loss, medical bills, a cut in pay or another such issue, Javice said.

In addition, if another school gave you a better financial offer, you can petition the school that gave you the lower offer for more money, Javice noted. “This typically works better for private institutions versus public state schools, given the fact that they have a little bit more discrepancy and more dollars to put to work in terms of a tuition discount,” she added. “This is solely up to the school on a case by case basis.” In some cases, the money is distributed on a first come, first serve timeline, so don’t wait if you know you need more aid.

Although financial aid can be a stressful topic, try not to be emotional when you request more money, Javice added. You’ll get a lot further by having organized documentation to present than you would by getting angry or upset, she noted.

Consider Outside Scholarships

The coronavirus situation has changed plans not only for incoming freshmen, but also for current college students, Nelson said. “Organizations are stepping up and trying to find ways to provide additional scholarship opportunities this year,” she noted. Students should be proactive in seeking those options.

Raise Me is offering new micro-scholarships for students who are seeking additional funding sources, Kalinkewicz said. In addition, she encourages students to ask colleges for more time to make decisions, even if the school hasn’t extended its deposit process. You can always try and request additional time to get your financial aid package right, she noted.

Finding more money is not relegated to younger students, Javice added. “Adult learners comprise the biggest group of people actually going to college today,” she noted. It’s very common for people to be seeking new types of skills and going back to college to gain additional degrees. Financial aid is available to adult learners, and they may even get aid to pay such costs as rent, she added. In addition, they can seek outside scholarships or employer-matching funds to pay for their educations.

Not Necessarily Too Late to File FAFSA

Students who didn’t file a FAFSA already should do that as soon as possible so you can get access to financial aid funds, Javice said. Federal FAFSA deadlines are usually in June, but states make their own deadlines for state aid. Some states, such as New Jersey, have moved their deadlines back for this year, so check to make sure you stay on top of your deadlines.

And if you file for financial aid and you decide you don’t want it, you can always decline the financial offer or portions of that offer, Nelson said. Your best bet is to apply so you can take what you need and decline any amounts you don’t need. Even if you don’t think you qualify for financial aid, you should apply anyway because you could be surprised at what you’re offered. “You really need to complete that [FAFSA] process every year,” Nelson said. “The process is very easy, and jobs can come and go. It’s your safety net and you want to make sure you’ve completed it. It makes it a whole lot easier when situations like this arise.”

Some colleges also have supplemental applications to fill out for particular types of aid, so always reach out to your financial aid office for information on which documentation you should be completing, Kalinkewicz said.

Could Families — Not Schools — Be in the Driver’s Seat?

Because many merit scholarships are based on test scores and GPAs, some high school juniors are concerned that they won’t have access to those in the coming year. With test dates being canceled and grades moving to pass/fail, they fear they won’t meet the criteria to earn such scholarships.

“It’s clear to me that colleges and universities know the extraordinary circumstances we’re under,” Nelson said. “All schools are leaning forward and considering all options as the situation develops. I would continue to encourage juniors to stay engaged and stay informed.” You should also watch to see what happens with test dates, she said. The ACT and SAT dates could change, and some schools may forego the need for a test score altogether, she added.

In addition, some merit scholarships that have traditionally been based on test scores may become test optional, Kalinkewicz noted.

Keep in mind that in many cases, families are in the driver’s seat rather than having the colleges be in charge, Javice said. Some schools have lost revenue and are very eager for students right now, “so if you are scared because you thought you could never get into a specific school from an admission criteria standpoint, this is your year to stretch, this is your year to think about the schools that are your reach category and go for it, because schools need the money and need the students. So the power that used to be in an admissions office is in you, the student or the family’s hands,” she said.

She also advises juniors to request application waivers from schools to save the $50 to $100 or so per application that they would normally pay. The schools may say no, but it won’t hurt to ask, she advised. “Persistence is key when dealing with schools,” Javice noted.

Federal Student Loans Payment Suspended

As many families are aware, payments on federal student loans are automatically suspended from March 13 through September 30, 2020 thanks to the government’s CARES Act. This is essential to keep in mind, particularly for families that have multiple children in various stages of the college process.

“You will stop paying your loans and you will have zero interest from now until September 30, and that’s important for parents to know,” Nelson said regarding existing federal student loans. “If you had an auto draft, the auto draft has been shut off and will not continue. You can, however, continue to make those payments if you’d like, and any interest you had before March 13, once that interest is paid up, all your payments will go directly toward your principal.” She advises families with federally-backed loans to check with their loan servicing agents, because they have a lot of information for both parent and student borrowers on how the CARES Act will impact payments for the next six months.

Student Job Gone? Colleges Might Help

For students who expect to earn money via part-time or full-time work to pay for college, but can’t do so due to the coronavirus, colleges may have resources to help. “There are many colleges and universities that have put together emergency grants for students to cover expenses that they were maybe not expecting because of COVID-19,” Nelson said. “They are making accommodations to try and make up for that lost income for students.”

Trusty said Morehead State is continuing to pay students who were on federal work-study. “If they had a job, we are still paying them right now as if they were working, although they are not. In the summer, those funds will be flipped over to emergency grant funds. So we will make sure that our students are covered and can live as if they were employed with the work-study position.”

Some colleges have even made remote work available to students, Kalinkewicz added. Therefore, contact your financial aid office to determine if any accommodations are available to make up for lost student income whenever possible.

Consider Other Options to Save

If you are seeking ways to save money on college, you should also consider other resources, whether that means less expensive colleges, in-state options or potentially transferring down the road, Janice said. You can also save money by taking classes at a community college to pay a lower cost for your credits that can be transferred to a four-year college later.

“If you have that target institution in mind — maybe you’ve already been admitted there but your family has determined a year of community college will really help stretch things further — work on articulation agreements or a plan so you are taking the right classes that actually have the ability to transfer toward the degree you want at your target institution, not necessarily just as credit,” Kalinkewicz said.

In addition, many colleges offer merit aid for transfer students, she added. So always look for every potential financial aid and scholarship resource to best maximize your package and allow your dollars to stretch as far as possible.

Resource: To review the entire hour-long webinar, you can watch the replay here.

Share Your Thoughts

We’d love to hear your thoughts on this topic. Check out our forum to contribute to the conversation!

By: Torrey Kim
Title: Webinar Recap: How COVID-19 is Affecting Financial Aid
Sourced From: insights.collegeconfidential.com/financial-aid-amid-covid-19
Published Date: Fri, 10 Apr 2020 15:22:20 +0000

Did you miss our previous article…
https://getinvestmentadvise.com/student-loans/former-georgetown-ao-demystifies-elite-admissions-in-new-book/

Continue Reading

Trending