Do University Scholarships Matter?

“The rapid growth in merit scholarships has been controversial: Many institutions (public and private) say that the awards allow them to better shape their classes and to attract talented applicants who might otherwise go elsewhere. Yields — the percentage of accepted applicants who enroll — go up. Critics have said that merit scholarships may help institutions, but don’t truly help students (most recipients of merit scholarships have many options) or broad social needs in higher education (the merit awards divert attention and funds from the needs of low-income students).”