Do I really mean it when I say to never turn down a full ride?

One of my earliest blog posts—and still one on the most popular—was “Don’t pass up a full ride.” You can probably tell the main idea from the title: you should not pass up a full ride. If you apply to a school and they offer you a full scholarship, go to that school.

Last week I got an email from a parent asking me if I still stand by that advice. His daughter won an honors scholarship—a full ride—at her state’s public flagship university, where she “didn’t know full rides existed until she was invited to interview.” She was also accepted to Washington University in St. Louis, a smaller private college with acceptance rates under 15%. And this is the problem, a problem I’ve heard before:

“Our heads say one thing and our hearts another, in part because the small school with huge endowment and beautiful campus is definitely appealing, but probably mostly seduced by this notion that an elite university is a sign of winning and will validate her hard work and make her feel as rewarded as her classmates who managed to get into some Ivies.”

My response was more sympathetic than you might expect.

“The short answer to your question is yes, I do think there are sometimes exceptions to my "never pass up a full ride" rule, and those exceptions are usually situations similar to yours. Though vague and unquantifiable, there is a value--in terms of professional networks, recruiting, social connections, and prestige--to the most elite colleges that can make them more valuable than the full ride at a safety. I would absolutely encourage a student to pass up a full ride elsewhere for Harvard, MIT, or Stanford if they could afford it. WashU probably fits into that category as well. No one can reasonably assume they'll be accepted at WashU, and she applied to her safety not knowing that a full ride was a possibility, so it can be reasonable to pass up the scholarship (which you weren't expecting) for the elite private college (which you weren't expecting to accept you). I would not think your daughter made a "bad" choice if she decides on WashU. 

It sounds like what it comes down to is an emotional decision--prestige, allure, falling in love--versus a rational one--major, money. Personally, I'm more of an emotional, intuitive person. Professionally, I work to be neutral. Either are valid, as long as she understands the choices.

If she were my client, I would make sure she's thinking through both options and communicating with her family. I'd tell her it's her own decision to make and that I would understand and support either decision. I would also really hope she takes the scholarship.”

So for me, the “prestige value” exception only applies to a tiny number of colleges: MIT, Harvard, and Stanford. While I’m very conservative in that list, I can see someone using the same logic for a longer number of schools, including WashU. The trick is that the list can’t be too long. You can’t stretch the vague, unquantifiable value so thin that you get yourself into a “the more prestigious school is aways worth more than a full ride the less prestigious school.” It’s just not true.

There are a few other exceptions to the “never turn down a full ride” advice.

Unsolicited scholarships. How do you respond if a school just, out of the blue, offers you a full scholarship even if you didn't apply or have never heard of it? Yes, this actually happens sometimes. Evaluate that school just as you would any other school, without taking into mind the price. If it meets your criteria and is a place you'd apply, then you're done. Congratulations! If the school doesn't make it into your top twenty and isn't a place you would want to apply, then you can comfortably say No Thanks. 

Financially troubled colleges. A full scholarship to a college may not be worth much if the college closes before you’re about to graduate. And colleges are closing at a rate of about one a week right now. It’s not always easy to know if a school is in financial distress—they probably won’t tell you as part of their marketing materials. But there are some signs to look for. If you’re accepting a good deal from a financially troubled college, even if it’s not a full ride, you’re taking a big risk. But that doesn’t necessarily mean you must always avoid the risk: a year or two of free college might be worth it even if you end up having to transfer elsewhere to finish college. But there’s no shame in turning down a full scholarship from a college that isn’t really able to afford it.

Thanks for reading! If you enjoyed this post, here are three easy things you can do:

1. Share it on your social media feeds so your friends and colleagues can see it too.

2. Read these related posts:

   Not all merit aid is the same

   Colleges don’t give you money

   Five key ideas about paying for college

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Apply with Sanity doesn’t have ads or annoying pop-ups. It doesn’t share user data, sell user data, or even track personal data. It doesn’t do anything to “monetize” you. You’re nothing but a reader to me, and that means everything to me.

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Not all merit aid is the same

It’s generally understood that there are two types of financial aid: need-based aid and merit aid. Need-based aid is relatively straightforward. Your family submits financial documents (mostly income tax forms) so your Expected Family Contribution, how much you and your family might be expected to pay, can be determined. The difference between the price of a college and your EFC is considered need. Need-based aid, loans that have to be repaid and/or grants that don’t have to be repaid, is awarded to help you cover that need.

Merit aid, on the other hand, isn’t based on financial need. Merit aid—scholarships and grants—is what colleges offer to students trying to entice them to choose their school over other schools. It’s a tool universities use to make sure they get enough students to enroll and to get the student they really want.

(There is a lot of overlap between need-based and merit aid. If a college is really interested in a student, they may find a way to reduce their EFC and therefore get more need-based aid. Also, being able to meet full need and not gap a student on aid is definitely a way to entice students. But let’s ignore the overlap today and focus on pure merit aid.)

What’s less generally understood is that there is a wide variety of merit aid. To get an idea of the spectrum of merit aid, let’s look at two examples from my home in Houston.

When you look at the scholarship page on the University of Houston’s website, you get a lot of information. There are so many different scholarships, both funded by the university and outside sources, that they have a special navigation tool to help you search through all of them. Each scholarship has a name, a description, and instructions for how to apply. You can spend a lot of time looking through the scholarships and see exactly what you may be eligible for. It’s overwhelming at first, but it’s transparent.

Screenshot of the Scholarship Universe page at the University of Houston website.

For comparison, have a look at the Rice University merit scholarships page.

All admitted freshman applicants are automatically considered for merit-based scholarships so that no separate application forms or interviews are necessary. The Office of Admission notifies scholarship winners at the time of admission to the university.

That’s it. There aren’t individual scholarships you can apply for, nor are there descriptions or requirements. It’s the scholarship version of “don’t call us, we’ll call you.”

Screenshot of the Merit Scholarship page at Rice University’s website.

These are two extremes. On one end is U of H, which is basically a list of individual scholarships that require extra applications on your part. On the other end is Rice, where merit aid is not separately applied for, but is just part of your overall application. One is limited, but transparent. One is open-ended, but opaque.

Merit aid at most colleges is somewhere in between. There are named and defined scholarships for which you can apply, but there are also “merit aid” tuition discounts that just…appear. It helps to remember that while need-based aid is all about you and your particular circumstances, merit aid is all about the school and the funds they have to try to entice students to apply and enroll. Some schools have limited funds to hand out merit aid, and some schools have tons.

These two extreme examples remind us of several key ideas when it comes to merit aid:

Not all merit aid is the same. There’s the specified and limited kind like you see on the University of Houston website, and then there’s the mysterious kind you see on the Rice website. When I talk to students, they’re usually thinking of the UH kind. They’re talking about scholarships for which they can apply. When I talk to college admission professionals, they’re usually thinking of the Rice kind. They’re talking about the tuition discounts that are offered out of the blue by algorithmic calculations the college makes to decide how much to offer you to entice you to enroll. When you’re thinking about applying to a college, spend time on their financial aid sites to see where they fall in their approach. You don’t want to miss an opportunity to apply for a scholarship, nor do you want to assume that there’s no merit aid if there is. But you should know what the school offers.

Merit aid is often out of your control. It’s all about them enticing you for their enrollment needs, not necessarily you earning something through a competition. There are all sorts of reasons a university may want to entice you, and you often don’t know what it may be. Maybe the college is trying to improve the stats of their incoming class and therefore their ranking, so they want to lure students with higher test scores and higher GPAs. Maybe they’re trying to improve diversity, so they want to lure students from different parts of the country or with different experiences than those who typically applied in the past. Maybe they’re trying to fill up a new major they offer or revitalize a declining program, so they want to lure bright students with a particular course of study in mind. Maybe they want to lure wealthy students who can pay cash, so they flatter them by giving them a merit-based scholarship and a small discount to get them to come and pay most of the tuition. So think of merit aid as “acceptance plus.” You’ve been accepted to the college, plus they want to give you a discount in order to really lure you in. Some schools give very few applicants this kind of bonus, and some schools give most—or even all—their applicants some kind of bonus.

Generally speaking, expect more transparency from public institutions. It’s not surprising that University of Houston has the navigable list of specific scholarships. Public institutions, which are subsidized by tax dollars and overseen by public boards, tend to have more regulations in place for transparency. Private colleges are more likely to use the un-announced, un-applied-for type of merit aid. To be clear, I’m not saying that public universities are more or less likely to give you merit aid, just more likely to tell you upfront what it might be, and to make you apply for it separately.

Generally speaking, expect less merit aid the more selective an institution is. Remember that merit aid is meant to entice you to apply to their college, and to enroll if accepted. So it makes sense that the lower the acceptance rate of a college, the less merit aid you might expect. They already have enough applications; they don’t need to entice more. That’s how a private university with a low acceptance rate like Rice can be so nonchalant about merit aid. And it’s how the schools with the very lowest acceptance rates, like Harvard and Stanford, don’t give merit aid at all.

With each school you apply to, know what their merit aid landscape looks like and what you need to do. If you’re considering applying to a school, make sure you check out their website to learn more about their merit aid program. Is it more like the one at the University of Houston, or more like the one at Rice University? If you want to know even more details about aid, look up the Common Data Set for the college. Just do a web search for “[name of school] common data set”. Most colleges have this information available, and you can scroll through the spreadsheet to find all kinds of financial information. It takes some searching, but it’s there.

You can’t assume you will get merit aid. Whichever type of merit aid you’re thinking of, there’s no guarantee you’ll get any. If you meet certain qualifications to get automatic merit aid at a particular college (being a National Merit finalist, for example, or having really high standardized test scores), that doesn’t necessarily mean you’ll get that automatic aid from other schools. Each sets their own policies, and—as we’ve seen—not all of them even tell you what those policies are.

Thanks for reading! If you enjoyed this post, here are three easy things you can do:

1. Share it on your social media feeds so your friends and colleagues can see it too.

2. Read these related posts:

   Schools can, and should, teach college affordability

   Three things parents should stop saying to their children

   Don’t pass up a full ride

   Asking for more financial aid

3. Ask a question—or share other resources—in the comments section.

Apply with Sanity doesn’t have ads or annoying pop-ups. It doesn’t share user data, sell user data, or even track personal data. It doesn’t do anything to “monetize” you. You’re nothing but a reader to me, and that means everything to me.

Photo by Angela Elisabeth.

Apply with Sanity is a registered trademark of Apply with Sanity, LLC. All rights reserved.