Historically, officials from 15 NE colleges with selective admissions policies and high tuition met each spring to compare financial aid packages for more than 10,000 common applicants. These meetings were designed to eliminate any differences in the financial aid packages offered by the various colleges. What would be the effect of the net price(tuition less financial aid) paid by applicants to the colleges participating in the meeting? Are there any factors that would work to undermine the ongoing viability of the prcatice? If so, what are these factors?
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The effect of the net price paid by applicants to the colleges participating in the meeting would likely be a more consistent and equal financial burden across those colleges. By comparing financial aid packages, the officials would aim to ensure that each college offers a similar level of financial support to common applicants. This would minimize any disparities in the net price paid by students, making the cost of attending these colleges more equitable.
However, there are several factors that could potentially undermine the ongoing viability of this practice:
1. Changing financial resources: If some colleges experience changes in their financial resources, such as decreased endowment or reduced government funding, they may not be able to provide the same level of financial aid. This could lead to discrepancies in the net price paid by applicants.
2. Varying institutional priorities: Each college may have different priorities in terms of allocating financial aid. Some colleges may prioritize supporting low-income students, while others may focus on attracting academically gifted students. These varying priorities could result in differences in the aid packages offered, leading to disparities in net prices.
3. Competitive pressures: Colleges operate in a competitive environment, and in order to attract students, they may use financial aid as a tool to differentiate themselves. This could lead some colleges to offer higher financial aid packages than others, resulting in different net prices for applicants.
4. Legal restrictions: Colleges must adhere to various legal regulations and policies when awarding financial aid. If there are changes to these regulations, it could impact the uniformity of the aid packages offered, potentially leading to differences in net prices.
Overall, while the meetings among officials aim to eliminate differences in financial aid packages, external factors such as changing resources, institutional priorities, competitive pressures, and legal restrictions can work to undermine the ongoing viability of the practice.