Virginia universities face pressure
to compete with Ivy financial aid deals
Yale University is one of several elite schools that are increasing financial aid packages.
(AP Image)
Virginia universities might take a second look at their financial aid packages based on the recent initiatives of a few highly competitive schools.
The aid extensions are results of congressional pressure on universities with large endowments to spend more money on reducing student costs.
On Jan. 14, Yale University announced that it would dip into its $22.5 billion endowment to increase financial aid for a broader student pool, including families earning up to $200,000 a year.
Harvard University announced a similar aid extension plan in December, taking money from its $35 billion endowment to increase aid for those earning $120,000 to $180,000 annually, according to a press release.
John DeCourcy, director of financial aid at W&L, said a $100 million gift last year will double the size of the university's previous merit-based grants. But, he said, W&L has followed a no-loans policy for five to six years. In other words, student aid packages no longer include loans that have to be paid back after graduation.
"We were in this financial aid groove a while ago," said DeCourcy. "We just haven't been beating our chests about it." W&L has recently seen its endowment increase to more than $1 billion.
Many other colleges are joining the rush to reduce costs for middle class families. Dartmouth College, Colby College and Bowdoin College have all recently announced that they will replace loans with grants for all eligible students.
The University of Virginia's Financial Aid Office has not said whether it will increase its financial aid. The university has a $4.5 billion endowment, the largest per capita endowment of any national public university. The university is already annually committed to $20 million of need-based grants through its Access UVA program.
Most of the nation's private colleges have endowments that are far smaller than Harvard's or Yale's. Still, DeCourcy says the recent announcements could have widespread impact.
"Once Harvard does something, you can bet it's going to have a ripple effect across the country," he said. "But it's only going to go so far because some of those schools don't have the endowments."
Some critics believe that the pressure on colleges to follow Harvard's and Yale's lead in accommodating the middle class will actually have a negative impact.
In an essay for The New York Times, Andrew Delbanco, director of American studies at Columbia University, said that colleges with smaller budgets could wind up taking away aid from relatively poor students in order to give more to relatively wealthy ones.
In turn, Delbanco said it will become even harder for low-income students to attend competitive colleges, causing counterproductive results.
But DeCourcy said that every college feels the need to stay in line with national trends.
"If you want the best kids," DeCourcy said, "you've got to compete."
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