Roundup: News You Need to Know, Thurs., Dec. 14th

Colleges Offering a Wider Variety of Early Admissions Options

Most colleges are not following the lead of Harvard, Princeton, and the University of Virginia in ending binding early admissions. According to a Wall Street Journal article, many colleges are actually expanding their early admissions options in order to gain a competitive edge and have more control over the makeup of their student bodies. Increasingly colleges are adopting new admissions alternatives such as: "instant decision" (students are informed almost immediately); "fast track" (schools promise faster decisions to students who express interest in the school); "early decision II" (between early decision and regular decision); and "snap apps" (students receive an unsolicited, partially filled-out application with no application fee and no official deadline). Some colleges believe they are making the process more "customer-friendly" by offering a wide variety of admissions tracks. Higher Ed Watch thinks theyre hurting students.

Anti-Affirmative Action Campaigns Considered in 9 States

Former University of California Regent Ward Connerlys American Civil Rights Coalition has set up exploratory committees in nine states to consider ballot measures to ban affirmative action. Connerly is planning on trying to get the measures on ballots for the 2008 elections, and will decide which states have the best "resources" before starting new campaigns. The nine states being considered are Arizona, Colorado, Missouri, Nebraska, Nevada, Oregon, South Dakota, Utah and Wyoming. Connerly is optimistic about the possibility of bans in these states, because the ballot initiative in Michigan was opposed by most of the political and business establishment and still passed. Connerly "doesnt think there will ever be a state that is as difficult as Michigan."

Requirements for Federal Grant Programs Restrict Access to Funds

Two student grant programs created by the federal government last year are being under-utilized, and financial aid officials say it is because of the extensive requirements for eligibility. The Academic Competitiveness Grant (ACG) and National Science and Mathematics Access to Retaining Talent (SMART) Grant were designed to support high achieving, low-income students who major in high-demand science, technology, and language fields. In order to qualify for the grants, students must: hold American citizenship, have completed a rigorous high school curriculum, attend college full-time right out of high school, maintain a 3.0 grade point average in college, and for the SMART grant, be enrolled in a particular major. The Department of Education has estimated that 480,000 students will have received $686 million in grants by the end of fiscal year 2007less than the $790 million appropriation projected to benefit 500,000 students. Financial aid officials are complaining that very few students on their campuses actually meet all of the requirements, and argue that the money could be better distributed to benefit low-income students.

College Endowments Post High Returns, Gap Grows Between Wealthy and Strapped Universities

The gap between wealthy, elite universities and less well-endowed colleges is growing, according to preliminary data from a survey by the National Association of College and University Business Officers. Overall, college endowments posted strong returns in Fiscal Year 2006 with an average rate of return of 10.7 percent, up from 9.3 percent in fiscal year 2005. High returns resulted from the diversification of endowment funds out of stocks and into alternative investments such as hedge funds, private equity, real estate, and commodities. The largest endowments had a much larger average rate of return than the smallest endowments: endowments of more than $1 billion posted a 15.2 percent increase, while those of less than $25 million only grew 7.8 percent. Wealthier institutions have access to more experienced managers and can afford to take risks associated with higher-return investments.