Published December 2012. Financial aid and student loan rules change often, so some details may be out of date. Ask us about your situation.
Many smaller private colleges have for years taken part in a process called "need-blind admission," in which students are accepted to schools regardless of their financial standings. Most colleges and universities that have historically been able to practice this form of admission are prestigious institutions with large endowments. These kinds of schools have the flexibility to be selective about their student body based upon what they bring to the table academically instead of how they will pay for a degree.
Following the "Great Recession," some of the richest schools in the nation saw their endowments plummet. Institutions like Harvard University, which had invested a large portion of its cash reserves in the stock market, lost a huge chunk of its finances when the market crashed in 2007. Williams College in Massachusetts, which depended on once vital contributions from illustrious alumni to fund financial aid programs, saw its assets essentially freeze when the national economy teetered on collapse.
Because of a tightening of the purse strings at the country's richest schools, admissions departments have been quickly putting the brakes on need-blind acceptance. Institutions like Wesleyan University in Connecticut, which had once provided grants to students with extreme fiscal constraints, are now heavily modifying their financial aid packages, forcing students to take out costly loans in place of financial gifts.
Many of the schools that had seen large portions of their endowments disappear because of the recession have been able to regain some of their finances or at least prevent further losses. However, the Department of Education reports that over the past year, cash reserves remained flat at colleges across the country, while government funding on the state and federal level has continued to shrink.
Because of the lack of gifts available to deserving students looking to attend an elite school, negotiating financial aid can be more difficult than ever. College Financing Group has experienced financial aid counselors on hand to help students and their families get the education they deserve at a price that works for them.