Kentucky's Need-Based Aid Gamble

January 24, 2017
  • Industry News

It’s a rare move for a state flagship university: the University of Kentucky is stepping back from the merit-aid rat race.

The university recently said it will seek a dramatic shift in its split between what it calls institutional merit aid -- also called non-need-based aid -- and need-based aid. That split is currently 90 percent in favor of non-need-based aid. By 2021, the university hopes to skew it largely the other way, to be 65 percent need-based aid.

That move would be a break from trends among many institutions, particularly state flagships, which in recent years have typically thrown financial aid dollars at top students who are viewed as likely to graduate and to bring impressive test scores that may boost ratings -- but are often more likely to be able to afford college on their own. UK’s administration lists various reasons for the change, including that it better serves the needs of Kentucky’s population and that as a land-grant institution, the university should prioritize access for students who need financial assistance.

But leaders also tout data-driven reasoning behind their goal. They’ve found that their students become much more likely to drop out if they have $5,000 or more in unmet financial need. By focusing on reducing students’ unmet need, they hope to drastically boost retention.

Read more at Inside Higher Ed: https://www.insidehighered.com/news/2017/01/24/university-kentucky-moving-away-merit-aid