Click here to go to the NEW College Discussion Forum

There's been some discussion of this topic in the Divorced Parents thread, but I think it merits its own topic. A month or two ago, 28 top schools signed a deal to standardize their aid policies.

The schools put a positive spin on it, stating that at most schools more aid would end up being distributed, and that more aid would reach students with financial need.

Outside observers, including this writer, see other motives - specifically, reducing competition between schools for the best students.

I'm interested to see what others think - is this deal a good thing or a bad thing? Will middle class families have reduced negotiating leverage with these schools? Will the Justice Department get involved, as they did once before when they stopped the Ivies and MIT from coordinating their aid offers to individual students?

By GFI on Friday, October 05, 2001 - 04:11 pm: Edit

I don't understand how colleges and universities can get together to, in essence, agree on pricing. If a group of tire makers got together to agree on how they were going to sell tires to auto companies, they'd be sued and indicted.

In this case, the consumer will apparently have fewer choices as a result of this agreement. Aid packages that might have differed more in the past are likely to be more uniform. Even if some students benefit, the negative impact on other would appear to make this agreement an illegal one.

By J. Johnstone on Friday, October 05, 2001 - 07:45 pm: Edit

I predict that this charade won't last very long before the government acts against it. First, IMO, it's totally anti-consumer. Second, no matter how you spin it, it's racketeering. You have an organized group conspiring to maximize cash flow at the expense of those least likely to be able to afford it. Don't worry, America, the "Gang of 28" will be history soon. BTW, I wonder what law firm is counseling these guys. They should be disbarred en masse.

By Dadster on Saturday, October 06, 2001 - 08:49 am: Edit

I agree that it looks pretty questionable. The other thread here had a link to an article that originated at Northwestern. An administrator there actually talked about preventing bidding wars. This certainly should cause Justice Dept. ears to perk up. If you are going to participate in a conspiracy, you should really have better security and make sure everyone gets the story straight...

By AnonEMoose on Sunday, October 07, 2001 - 11:47 am: Edit

Is it true that the deal eliminates the distinction between parent assets and student assets, and counts them all at the lower rate? That would be a good thing, in my book.

By George Meany on Sunday, October 07, 2001 - 12:39 pm: Edit

>>That would be a good thing, in my book.<<

Are you writing a book about the 28-school group, AEM? If so, when will it be out?

By California Mom on Sunday, October 07, 2001 - 03:56 pm: Edit

I've heard some talk about eliminating that distinction, but I don't think the colleges can make an agreement that affects FAFSA calculations, and I believe that the FAFSA number provides the bottom line as to federal loan eligibility.

I agree that it would be good to eliminate that distinction, but I don't think it's something that's part of the 28-school plan.

By AnonEMoose on Monday, October 08, 2001 - 11:49 am: Edit

When my book is published, GM, I'll be sure to include some of your brilliant witticisms. ;-)

By GFI on Monday, November 05, 2001 - 03:23 pm: Edit

I like the part about how "in most cases the deal will result in more aid being awarded". No doubt that's why all the signing colleges and universities got on board, they had too much money that they couldn't figure out how to give away fast enough...

By burningman on Monday, June 17, 2002 - 08:42 pm: Edit

Whatever happened with this deal - was it in effect for this year's crop of financial aid offers, and, if so, was there any noticeable difference?