Funding Socioeconomic Diversity at High Performing Colleges and Universities

Abstract

At America’s 270 four-year public and private not-for-profit colleges and universities with graduation rates consistently above 70 percent, only 22 percent of students received Pell grants in academic year 2013-2014. By contrast, nearly 38 percent of students enrolled at all other four-year public and non-profit private schools receive Pell grants. This disparity is not driven by differences in student ability. With finite budgets and multiple priorities, institutions limit the funds they allocate to need based aid and other programs that support low- and moderate-income students. Yet even with those constraints, there are top-performing colleges and universities that have enhanced their commitment to serving these students and have found the financial means to do so. This paper profiles five of those institutions, focusing on their strategies for allocating funding to increase opportunities for low- and moderate-income students.