NASFAA Director for Research and Policy Analysis Kenneth Redd was a featured guest on the National Public Radio show "Talk of the Nation" on the afternoon of May 2. Redd, along with representatives from two NASFAA Member institutions, discussed the growth of merit-based versus need-based institutional and state aid programs. Members of the public were able to call-in to the show, making for a lively 30 minutes.
Those interested in hearing the program can access an archived audio file of the segment on-line (Click on the "Listen" icon to begin the broadcast).
"The fact of the matter is that merit aid funding has more than tripled," Redd said. "Back in 1990 it was around $600 million. Today, for a lot of different reasons, the amount of merit funding has exceeded $6 billion." In comparison, Redd noted that the need-based Pell Grant program increased at a much slower rate--from $9 billion to $13 billion over the same time period.
Representatives from two higher education institutions participated in the debate on the pros and cons of merit-based financial aid.
"I think this whole notion of merit aid is a misnomer," said Robert Massa, vice president for enrollment and college relations at Dickinson College in Carlisle, PA. "Even when state governments--such as Georgia, for example--offer merit-based aid, the intent really is not to reward high school students for the wonderful job that they have done, but rather to keep enrollments in the state. Or--in the case of private colleges--[the intent is to] compete against one another."
"The rise in competition through non-need based aid has created a bidding war that in my judgment commodifies higher education and turns it into the same kind of negotiation process as buying a car," Massa added.
Nancy McDuff, director of undergraduate admissions and enrollment management for the University of Georgia in Athens, spoke in favor of merit awards and outlined the benefits and accomplishments of Georgia's HOPE Scholarship program.
"I think it takes a combination [of types of aid] to meet all students' needs," said McDuff, noting that the HOPE scholarship provides "a very equal footing for students to attend college throughout the state."
By Elizabeth B. Guerard
NASFAA Assistant Director for Communications
Posted May 4, 2005 on www.NASFAA.org, the Web Site of the
National Association of Student Financial Aid Administrators (NASFAA).
Copyright 2005. Redistribution to non-NASFAA institutions is prohibited
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