Booming merit scholarship program strained relations among Temple's leaders
The dispute that led to the ouster of Temple University's top two leaders in the last month is rooted in a merit scholarship program that grew too quickly and raised questions about how much aid not based on need should a state-supported university hand out.
The dispute that led to the ouster of Temple University's top two leaders in the last month is rooted in a merit scholarship program that grew too quickly and raised questions about how much aid not based on need should a state-supported university hand out.
For decades, Temple has provided merit aid to lure top students to its North Philadelphia campus. But under president Neil D. Theobald and provost Hai-Lung Dai, qualifications were changed so that students who scored above a certain grade point average and SAT result automatically qualified for merit aid.
"Programs prior to that, admissions would evaluate applications," said Ken Kaiser, Temple's chief financial officer.
The first year of the new program, Kaiser said, only 350 students qualified for the top levels of merit scholarships, which cover tuition, not room and board. By fall 2015, as guidance counselors and students became more aware of the program, 450 got the aid, he said.
This fall, even though the SAT requirement was raised, Kaiser said, more than 700 students qualified. That led to a $22 million deficit, which Theobald and Dai sparred over.
"The bottom line is, the program was way more successful than anticipated, and as a result changes had to be made, and they're being implemented for fall of 2017," Kaiser said.
For the fall 2016 class, students needed at least a 3.0 GPA and an 1150 out of 1600 on their reading and math SATs to receive some merit aid. Those with a 3.8 GPA or above and a 1420 SAT or above got the highest amount.
For next fall, the thresholds will be raised, Kaiser said, and the number of scholarships will be capped. In other words, there's no guarantee that a student who hits the threshold will get the aid.
The university closed the deficit by cutting administrative budgets and putting off some expenses, he said.
"Going forward, we'll stay in the financial parameters we've set," he said.
Many private and public universities use merit aid to bring in top students, but critics worry that programs take money away from students in need.
"We've just known for ages it's generally not a good thing to do if you're concerned about equity," said Sara Goldrick-Rab, a professor in educational policy studies and sociology who left the University of Wisconsin-Madison to start work at Temple this month.
But she said she understands the need to help middle-class families that may not qualify for Pell grants afford college.
Still, she wrote in a blog post: "If the goal is to help price-sensitive students . . . then use a lottery to distribute it. That introduces far more fairness to the process than the use of merit, which is a stacked deck."
Kaiser said most students who qualify for merit aid also have financial need. The university gave out $100 million in financial aid last school year, and three-quarters was based on need, he said.
Mark Kantrowitz, a financial-aid expert, said more state schools are using merit aid to attract high-quality students. He said any school that cannot meet the demonstrated need of every student should not give merit aid.
"Merit-based aid is a luxury. Need-based is a necessity. You do what you need before you do what you want," he said.
Kaiser, however, said the program had helped to make Temple's student body more diverse and create a better learning environment. About 40 percent of the incoming class will get some merit aid, he said. That includes about 15 international students, who typically have to pay full price.
"Just because it's called merit doesn't mean it's strictly only merit for rich kids from the suburbs who we're trying to lure here," Kaiser said. "The whole merit program has done wonders for diversity. It's allowed us to get kids from underrepresented minority populations who will now come to Temple because they can get a scholarship here. So it's had great benefits for the university."
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