Stanford preserves legacy admissions by pulling out of Cal Grant aid program

San Francisco Chronicle​

15 hours ago

With three weeks to go before California's ban on legacy admissions takes effect at private universities that receive state funding, Stanford has made a stunning decision: To preserve that perk, it's pulling out of the Cal Grant program that benefits hundreds of low-income students at the pricey campus.
By declining Cal Grants, Stanford can continue giving admissions preference to hundreds of students who are related to alumni or whose relatives have given money to the university. The statewide ban on such legacy and donor-driven admissions takes effect Sept. 1 under Assembly Bill 1780, which was signed into law last year.
Stanford officials say they will cover the canceled aid with university money, and that it will cost just $4 million a year.
'The university will continue to study the consideration of legacy status in admissions and opt out of state financial aid funding in order to comply with recent California legislation,' university officials said in a statement posted on their website over the summer. The statement noted that such admits need to be academically qualified to be considered.
'I was genuinely shocked to see Stanford make this decision. I was surprised that Stanford decided that they would rather put the thumb on the scale for the richest students than take Cal Grant money,' said James Murphy, director of postsecondary policy at Education Reform Now, a think tank that opposes legacy admissions.
Stanford is one of six California private schools that last year reported giving preferential admissions to the children of alumni or wealthy donors. Stanford said it admitted 295 students this way in fall 2023, or 13.6% of all undergraduates admitted that year. The other private schools that relied on the practice were Santa Clara University, the University of Southern California, Northeastern University Oakland (formerly Mills College), Claremont McKenna College and Harvey Mudd College. None has said it was pulling out of the Cal Grant program.
A wave of opposition to legacy and donor admissions emerged after the 2019 nationwide admissions bribery scandal known as Varsity Blues, in which it was revealed that wealthy parents, including celebrities, had cheated to get their children into Stanford, the University of Southern California, UCLA, UC Berkeley and other prestigious schools across the country.
Opposition to legacy admissions strengthened in 2023, after the U.S. Supreme Court outlawed affirmative action in higher education. That ruling made it illegal for universities across the country to consider the race of applicants in admissions decisions.
Then-Assemblymember Phil Ting, D-S.F., who last year authored California's ban on legacy admissions, called the practice 'affirmative action for the wealthiest Americans.'
Another critic, Stanford alumnus Ryan Cieslikowski, who has pushed for similar bans across the country, said Tuesday that 'by clinging to legacy preferences,' the university is sending the message that 'the children of wealthy alumni and donors come first.'
Stanford says that no one who would have received state aid will be able to tell the difference, and they need to take no action.
'Stanford will substitute university scholarship funding for California student financial assistance programs, including the Cal Grant program,' the university told the Chronicle in an email Tuesday.
Stanford already pays $486 million a year to fully cover the $67,731 tuition plus room and board for students from families with annual income of less than $100,000.
Pulling out of the state aid program will cost the university about $4 million a year to make up the difference, campus officials said Tuesday, noting that about 440 Stanford undergraduates and 60 graduate students received Cal Grants or Golden State Teacher Grants last year. This year's maximum Cal Grant for private school attendance is $9,708.
Yet the decision to spend more to preserve legacy and donor admissions comes as Stanford is preparing to permanently lay off or eliminate 363 staff jobs in October to reduce its budget by an unspecified amount in the face or rising costs driven in part by federal policy changes. This includes a new 8% tax on its endowment — up from 1.4% — that is expected to cost Stanford $200 million this year.