Money makes the world go round

The University of California system admitted more in-state applicants this year, almost certainly because the state paid it to. This one hits home for me because I’m from California, though I live in Virginia now, and my parents went to UC Berkeley.

Colleges are self-interested. One of their aims is revenue. The UC system previously disadvantaged Californian applicants, because they paid less tuition.

Here’s what the California state auditor had to say about it:

“This report concludes that over the past several years, the university has undermined its commitment to resident students. Specifically, in response to reduced state funding, the university made substantial efforts to enroll nonresident students who pay significantly more tuition than residents.”

And further:

“…the university admitted nearly 16,000 nonresidents whose scores fell below the median scores for admitted residents at the same campus on every academic test score and grade point average that we evaluated.”

We don’t like to think about higher education being a business, but of course it is. Professors expect their paychecks at the end of the month. The pizza in the dining halls doesn’t make itself.

What does that mean for applicants, including your child?

The obvious answer is that donors’ kids get a big leg up. Here are a few unsettling things that surfaced in the Harvard litigation.

First, an email from the development office to the dean of admissions:

“[Redacted] was a devoted chair and a generous donor. His latter years were quite challenging based on having [redacted]. Going forward, I don’t see a significant opportunity for further major gifts. Had an art collection which conceivably could come our way, more probably it will go to the [redacted] museum.”

And a tidbit from the same dean’s deposition:

Q: So is admitting the children and relatives of large donors important to you and others at Harvard?

A: It is important for the long-term strength of the institution that we have the resources we need to.

The next obvious answer is that kids whose parents can pay tuition get a boost too. Here’s what an anonymous dean of admissions in a 2011 survey had to say:

“The last thing we look at is money—whether the student has the money to pay—because we are a tuition-driven institution. This probably applies to 10-15% of the applicant pool. Also, although this question remains till the end, it can determine a student’s acceptance.”

What if your family doesn’t fall into either of those categories? How can your kid bring dollars in the door for a college?

One option is to be a good athlete, particularly in the most lucrative sports: men’s basketball and football. If your kid is good enough to be a recruited athlete (ask the high school coach for his or her candid views, if you’re wondering), then pursue that path in with all your might. It’s a golden ticket.

Here’s part of a memoir from a former Duke admissions officer:

“‘I need you to read this football player for me.’

‘It’s May,’ I respond. ‘Didn’t anyone tell him that applications were due in January?’

‘Oh, he’s already been admitted. But he just sent in the completed application, and now it has to be read.’

‘Does it occur to anyone that this system is a little backward?’

But for the revenue sports, football and basketball, that’s how it works. Get admitted, make a commitment, then apply.”

And if your kid isn’t an athlete?

He or she can indirectly bring dollars in the door by getting good grades and test scores, which will buoy a college up the US News and World Report rankings. Then the richer kids, whose parents can fund a library or pay full tuition, will be likelier to find that school appealing.

That’s why colleges give merit aid; they’re just buying high test scores and grades. It’s not charity.

In sum:

1.    Colleges’ need for money drives admission decision making.

2.    If your family can donate millions, you’ll get a big boost.

3.    If your family can pay full tuition, you’ll get a moderate boost at many schools.

4.    Regardless of your family’s wealth, if your kid is an excellent athlete, he or she can make money for a college with that skill. Colleges, therefore, open a very broad path in for recruited athletes.

5.    Regardless of your family’s wealth, if your kid has excellent test scores and grades, he or she indirectly attract dollars by boosting the school up the rankings. So, he or she faces better admission chances, and at some schools, prospects for merit aid.

What are the most effective and least painful ways to earn an impressive transcript and get the best possible test scores?

My online seminars on academics and standardized testing offer clear, actionable advice that answers your questions directly. You can sign up here.

If you want more personalized advice, including about athletic recruiting, you can sign up for a one-on-one consultation here.