Cost of Free Money
"Administrators at Long Island University, a private university in New York with multiple campuses, had to make budget cuts and are dealing with faculty pushback after the financial aid awarded by one of the college's two main campuses exceeded the budgeted amount," Inside Higher Ed reports. "Administrators overspent in an effort to meet enrollment targets and meet demonstrated need. ...Long Island is one of several institutions in recent years to over-award financial aid while trying to build a certain class profile. The University of Louisville’s law school announced in July that it had awarded $1.39 million in scholarships for its incoming class this fall to the incoming class after budgeting only $550,000. In 2010, over-awarding of financial aid was a large component of Birmingham-Southern College’s budget troubles. ...Representatives from the National Association of Student Financial Aid Administrators said overspending on financial aid is not a common occurrence, and that they have no evidence that there is a trend."
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