$5.3 Billion goes to students who do not demonstrate financial need, government says
Universities and colleges are giving $5.3 billion in aid this year to students who the federal government says don’t need financial help, according to figures from the College Board.
An additional $4 billion in federal tuition tax credits went to families making $100,000 to $180,000 — at least double the median income for U. S. households.
The schools use the money — more than 20% of all U.S. financial aid — to compete for applicants who have high grade-point averages and SAT scores. Some discounts serve another purpose: They lure high-income families that can write a check for the rest of the tuition.
The strategy is not unlike department stores and other retailers that use discounts to encourage customers to spend. Continue reading