The recent study of Eduventures revealed that the lines are blurring between need based and merit based financial aid because of the intense competition among students seeking financial aid to support their college education.
And with steep competition, even institutions who are offering need based awards tend to screen students based on their talents and not just purely financial incapabilities. Need-based aid is sometime utilized as a recruiting tactic to attract higher profile academic students.
The recent research also showed that families from the lowest income bracket spend 58% of their income on tuition as compared with only 12% for families in the top income brackets. And that student from the top family income bracket receives approximately three times the non-need-based award as students from the bottom family income quartile.
To read the complete report of Eduventures study, please click here.