henrikherb

Here are some trends in higher education worth noting: tuition prices are rising, applicant pools are skyrocketing, acceptance rates at top schools are dwindling, and for “lower-tier schools”, enrollment numbers are decreasing. These trends reflect an increasing competitiveness in the marketplace, and other than the top 30-40 of them, colleges and universities nationwide are trying to increase their yield and applicant pool simultaneously.

So how do they do this?

For the past half-century or so, ‘merit-aid’ has been the primary strategy, or at least the one that’s garnered the most attention. Colleges will offer “merit scholarships” and “grants” to acceptees in the hopes they’ll choose their school over others. This has shown to be an effective strategy to keep schools afloat financially, and especially so lately, now that tuition prices are at peak highs. But because ‘merit-aid’ is essentially a sales pitch, the term ‘merit’ is misleading – calling it a ‘discount’ would be more accurate. Sure, merit has something to do with it, given that by and large high-performing students are receiving these discounts in the first place. But why then are ‘B’ students also being offered ‘merit-aid’ at the same schools?

The answer to this is a bit complex, so before I give it, I’ll speak to how competitive – and how granular – marketing strategies have become since ‘the Internet’. Admissions Offices have a whole new branch now called “Enrollment Management”, where consultants and data analysts are hired to craft customized, attractive and targeted acceptance letters to each acceptee. Algorithms and marketing strategy, along with money of course, are poured into the wording of the letter, to the timing of its delivery, and even into the precise amount of ‘merit-aid’ to offer, down the dollar. Giving the scholarship a name seems to also help close the deal (thinking on it now, if I was offered the ‘Orson B Hatherford Scholarship for the Academically Gifted’, written out in Roman numerals and classical font, I would be swayed).

In effect, these scholarships most often target high-scoring students, because an incoming class with top SAT scores and GPAs leads to higher rankings. Giving good deals lures high value clients away from competitors. But because the cost of faculty and administrator salaries is so high for any given school, not to mention the upkeep of amenities and facilities, colleges can’t give merit-aid to everyone. Tuition is higher education’s main source of revenue, after all. And in effect, a ‘B’ student at an otherwise ‘A’ school might be offered a 25% discount, because they’re more likely to accept than many ‘A’ students who, even with a 50% discount, have offers from elsewhere.

What plays out, in effect, is a balancing act of offering just the right amount to any given student. Price tags are determined by the algorithms of “Enrollment Management”, and the billion-dollar consulting industry behind it. They crunch numbers based on previous test scores sold by the College Board, personal website browsing history and activity (down to how long you spend on each page on their website), and other data. The result is a heavily orchestrated advertising campaign, catering to behavioral probability. Unfortunately, this balancing act tends to favor the wealthy over the less wealthy, but I’ll save the effort to unpack that for another time.

It’s tempting to get cynical here, and assume that contemporary admissions is about numbers only – a crapshoot. But in my opinion, such a reaction would be knee-jerk, albeit with a shade of truth. Merit-aid is actually partly responsible for why admissions essays – the most non-quantifiable aspect of the college application – are increasingly important these days. Admissions officers are still passionate about finding real humans behind the dehumanizing sea of numbers, and creating well-rounded student bodies, similar to what we all experienced in college. In my next blog post, I’ll explain how the college essay fits into this story.

To read more on what Merit-Aid means for parents and students, and how to use this information to one’s advantage (no matter what your academic or financial situation is), wait for my next blog post, Merit-Aid Part 2.

When a parent asks me “what’s the best number of schools for my kid to apply to?”, I often respond with a well-rehearsed, “anywhere between 8 to 12”. But as high as that number is, most parents aren’t surprised – it’s a number they’ve heard from other parents and in-school guidance counselors. And there are several reasons for this. But frankly, I wish for the students’ sake that I could say no more than 4.

I wish this because I remember my own experience as a high school senior, applying to a baker’s dozen of colleges and universities – it was my first encounter with the feeling of madness. Anyone reading this who applied to even 6+ schools at that age can probably relate. Granted, the Common App makes applying to 10+ colleges a lot easier, but we can’t forget all the extra work that goes into supplement essays and preparing for interviews. On top of a healthy, senior-level course load, applying for college is not easy.

In my work, I’ve found that most college-bound seniors (and their parents) are overwhelmed with so many applications (the essays especially). While there are many ways to simplify the process (again…especially with the essays), I nevertheless recommend that most students apply to no fewer than 8 schools. For the majority of students, it’s a wise strategy. Here are the reasons why:

Applying to at least 2 desirable ‘safety schools’ – schools with a high likelihood of acceptance – ensures that your son or daughter will land somewhere. If you’re working with a good college counselor, you’ll find a host of excellent and reputable safety schools that excite and inspire your kid.
Applying to at least 4 ‘reach’ schools, meanwhile, increases a student’s odds of being accepted to a very selective school (and all the benefits that come with that). The number is higher here, because the top 75-100 schools in the country can be quite unpredictable. Ambitious students often choose more.
Applying to at least 2 ‘target’ schools – schools that are likely to accept, but not guaranteed – is like having a backup for the ‘reach’ schools. Again, a good college counselor will show you great target schools that are great fits for your kid.
Lastly, applying to many schools has the surprising effect of increasing the likelihood of receiving “merit aid”, which may make tuition much more affordable for your family.

But what is a ‘merit scholarship’, and why does applying to so many schools increase your odds of receiving one?

Merit-aid is different from need-based aid, but to say that it’s solely about merit is a stretch. The best way to look at it is as a ‘discount’ – in fact, most admissions officers and college administrators look at it this way. Why are colleges offering discounts? Because they’re trying to increase their yield (# of students who enroll/# of students who are accepted), it’s a viable strategy to prevent one student from enrolling at a more selective school. Offering a discount in a “merit scholarship” box can convince families that our college (compared to those other colleges) is worth the price.

You might be asking yourself: how could an admissions office possibly know the price tag that will persuade me to choose their college over another? And how could they know the number of schools my son or daughter is applying to, let alone which schools?

The way that these ‘gift packages’ are doled out is complicated and fascinating. The short answer is: predictive modeling, data analytics, and a billion dollar consulting industry. For now, all you need to know is this: the more colleges you apply to, the better your chances of getting a great ‘discount’, (*ahem*), “merit scholarship”.

To better understand how merit aid scholarships work, and what the implications are for the college application process, see my next blog post.

Author: henrikherb

What are Merit Aid Scholarships? Part 1

How Many Schools to Apply to?