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Time of India
a day ago
- Business
- Time of India
Explained: The history of legacy admissions in the US and why Stanford's latest move is raising eyebrows
Stanford University has prompted renewed debate over legacy admissions after announcing it will no longer participate in California's state-funded student aid programmes. The move allows the university to continue factoring in applicants' familial ties to alumni and donors when selecting its undergraduate class for autumn 2026, bypassing new state law aimed at limiting the influence of such connections in admissions. According to Higher Ed Dive , the law, effective September 1, restricts private nonprofit colleges that receive state-funded aid from considering legacy or donor status in their admissions decisions. Institutions that ignore the law while accepting aid must publicly disclose detailed admissions data. By stepping away from state-funded programmes, Stanford sidesteps these reporting requirements and the associated scrutiny. The university will instead rely on its own institutional scholarship funds to maintain financial support for students. According to Stanford's data cited by Higher Ed Dive , 13.6% of admitted undergraduates in autumn 2023 had alumni or donor connections. That year, the university's overall acceptance rate hovered just under 4%, underscoring the exclusivity of the process. Stanford assures that students previously receiving state aid will see no reduction in support; families earning below $100,000 annually pay no tuition, room, or board, while households under $150,000 are exempt from tuition fees. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Find your car's value online in minutes. Spinny Click Here Undo A historical perspective Legacy admissions, a practice that gives preferential treatment to applicants with familial ties to alumni, have been part of U.S. higher education for over a century. Introduced in the 1920s at elite institutions, these policies aimed to preserve selectivity and maintain the demographic makeup of prestigious universities. At the time, the concern was growing enrollment of Jewish, Catholic, and Asian students, and legacy policies helped ensure continued enrollment of White Anglo-Saxon Protestant students. Over time, the practice became entrenched, particularly at private, highly selective institutions such as Harvard, Yale, Princeton, and Stanford. The advantage granted by legacy status varies: some schools limit it to children of alumni, while others extend it to siblings, grandchildren, nieces, and nephews of both undergraduate and graduate alumni. A 2005 study of 19 selective schools found that, for applicants with similar SAT scores, legacy status increased the likelihood of admission by nearly 20 percentage points. Criticism and equity concerns Legacy admissions have long drawn scrutiny for perpetuating historical inequalities. Under the Equal Protection Clause of the 14th Amendment, all individuals are meant to enjoy equal protection under the law — a principle critics argue is undermined by legacy preferences. By favoring predominantly white, affluent applicants, legacy admissions are seen as institutionalized privilege, running counter to meritocracy and diversity goals, according to the Institute for Higher Education Policy. Several universities have phased out legacy preferences in recent years. Johns Hopkins University eliminated the policy in 2014, Pomona College in 2017, Amherst College in 2021, and Wesleyan University in 2023. At the state level, Colorado became the first to prohibit public universities from considering legacy status in 2021, followed by Virginia in 2022. The Supreme Court and changing legal landscape The U.S. Supreme Court's 2023 ruling overturning race-conscious affirmative action added a new dimension to the debate. The decision, which struck down race-based admissions at Harvard University and the University of North Carolina, has prompted several public universities, including the University of California, the University of Georgia, and Texas A&M — to reconsider or eliminate legacy preferences. While affirmative action sought to correct historical inequities, legacy admissions do the opposite, entrenching privilege at elite institutions like Stanford. In the 2021–2022 academic year, approximately one-third of selective four-year colleges in the U.S. still considered legacy status for first-time students, according to the Institute for Higher Education Policy . Private nonprofit colleges were most likely to uphold the practice, with 42% factoring in family ties, while 15% of selective public institutions continued to do so. In total, around 2.1 million undergraduate students attended colleges that used legacy status as part of the admissions process. A widening debate Stanford's decision has reignited debate over fairness and access in U.S. higher education. Civil rights groups and policymakers have questioned the continued use of legacy preferences, particularly after the end of race-conscious admissions. Maintaining legacy admissions at elite institutions reinforces systemic inequities, giving an advantage to students who are already privileged in other ways. The road ahead Stanford's move highlights a persistent tension in American admissions: Balancing institutional tradition with growing demands for equity. While some institutions are abandoning legacy preferences, others are finding ways to preserve them. As colleges navigate changing legal and societal expectations, the future of legacy admissions remains uncertain, raising fundamental questions about access, privilege, and the meaning of merit in U.S. higher education. TOI Education is on WhatsApp now. Follow us here. Ready to navigate global policies? 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Time of India
a day ago
- Business
- Time of India
Stanford chooses legacy admissions over state funding: Here's why wealthy connections still trump California's ban
Legacy admissions continue at Stanford as university opts out of state funding. (AI Image) Stanford University has announced it will no longer participate in California's state-funded student aid programmes in order to maintain its practice of considering legacy and donor connections during undergraduate admissions. The move allows the university to bypass a new state law aimed at limiting the influence of alumni and donor ties in admissions decisions. The law, which takes effect on September 1, restricts private nonprofit colleges that receive state-funded student aid from using legacy or donor status as a factor in admissions. Institutions that continue the practice while accepting such aid are required to publicly disclose detailed admissions data. Stanford's decision ensures it avoids these reporting requirements and associated public scrutiny. Stanford confirms continuation of legacy and donor admissions Stanford stated it will continue to factor in applicants' ties to alumni and donors when selecting its undergraduate class for autumn 2026, according to reporting by Higher Ed Dive. The university explained that its withdrawal from state-funded aid is "in order to comply with recent California legislation." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Secure Your Child's Future with Strong English Fluency Planet Spark Learn More Undo Stanford will instead use its own institutional scholarship funds to replace the state aid. As per institutional data cited by Higher Ed Dive, 13.6% of Stanford's admitted undergraduate class in autumn 2023 had donor or alumni connections. That year, the university's overall undergraduate acceptance rate stood at just under 4%. California law limits but does not prohibit legacy admissions The legislation, signed into law by Governor Gavin Newsom, was originally introduced by former California Assemblymember Phil Ting following the US Supreme Court's 2023 ruling that ended race-conscious admissions. Ting's proposal initially aimed to impose financial penalties by cutting access to the Cal Grant — a state financial aid programme for students from low- and middle-income families — for institutions that continued legacy and donor admissions. However, as Higher Ed Dive reported, the final version of the law did not include financial penalties. Instead, it requires schools to disclose demographic and admissions data for applicants with and without legacy or donor ties. It also allows the California Department of Justice to publish a list of noncompliant institutions on its website, implementing a name-and-shame approach rather than direct funding cuts. Stanford students will not see financial aid reduction Stanford confirmed that current and incoming students who were receiving aid from state programmes will not experience a decrease in financial assistance. "Students do not need to take any action," the university stated in a press release issued on July 29, as reported by Higher Ed Dive. Stanford continues to offer significant internal aid. Students from families earning below $100,000 annually pay no tuition, room, or board, while those from households making under $150,000 are exempt from tuition fees. TOI Education is on WhatsApp now. Follow us here . Ready to navigate global policies? Secure your overseas future. Get expert guidance now!
Time of India
06-08-2025
- Business
- Time of India
Pennsylvania universities are resorting to layoffs: Here is why
Universities across Pennsylvania are increasingly resorting to layoffs, campus closures, and mergers: a direct result of declining enrollment, stagnant public funding, and rising operational costs. According to a report by the National Center for Education Statistics, enrollment at US institutions of higher education dropped by 15% between 2010 and 2021, placing long-term pressure on college finances. This trend has been compounded by cuts in federal funding for higher education and research, as well as staffing reductions at the US Department of Education, which have created delays and uncertainty in financial aid processing. Temple University announces job cuts amid budget pressures In July 2025, Temple University confirmed the elimination of 190 positions, including approximately 50 layoffs, as part of a cost-cutting plan to reduce a $60 million deficit to $27 million. According to Temple's June 2025 budget update, the university has lost around 10,000 students since 2017, resulting in a revenue decline of about $200 million. The university also cited the upcoming changes to federal student loan and Pell Grant programs set to take effect in the 2026–27 academic year as an additional financial burden. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Woman sells ring given by ex, then jeweler tells her 'This can't be true' Daily Sport X Undo Penn State to close seven regional campuses In May, the Board of Trustees at Pennsylvania State University approved the closure of seven campuses: DuBois, Fayette, Mont Alto, New Kensington, Shenango, Wilkes-Barre, and York. These campuses, facing enrollment declines of up to 30%, will shut down after the 2026–27 academic year, leaving 13 campuses operational. The university has also implemented staff and operational cost reductions. Closures and mergers escalate According to Higher Ed Dive, which tracks college closures and consolidations, ten Pennsylvania colleges have either merged or closed since 2016. In 2024 alone: The University of the Arts in Philadelphia closed abruptly due to declining enrollment and financial instability. Pittsburgh Technical College shut down in August 2024. Clarks Summit University, located in Lackawanna County, ceased operations in July 2024. Mergers have become a popular alternative to full closure. In recent months: Rosemont College announced a merger with Villanova University. Lackawanna College merged with Pierce College in Philadelphia. Drexel University completed a federally approved merger with Salus University in July 2025, aimed at consolidating healthcare education and research infrastructure. Private colleges use shared services to cut costs The Association of Independent Colleges & Universities of Pennsylvania (AICUP) — representing over 80 institutions — has implemented 39 cost-saving programs that collectively generate tens of millions of dollars in annual savings. This includes joint purchasing of software, insurance, energy, and retirement fund management, helping small private institutions remain competitive despite limited direct government funding. HBCUs and state-related institutions face added uncertainty Lincoln University, a historically Black university (HBCU) and state-related institution, continues to operate without layoffs but is navigating severe budget constraints. Around 98% of Lincoln's students depend on federal financial aid, and delays caused by staff reductions in regional financial aid offices have added pressure. Lincoln receives approximately 25% of its budget from the state, which remains unresolved due to delays in the state budget process as of mid-2025. Impact beyond the campus The Federal Reserve Bank of Philadelphia, in a 2024 report, noted that college closures, mergers, and financial distress can have serious ripple effects on local economies, particularly in communities where universities act as major employers and economic drivers. In Philadelphia alone, institutions such as Drexel, Temple, Penn, and Jefferson play critical roles in both education and healthcare delivery. According to the same report, higher education and hospital 'anchor institutions' contribute $1.7 trillion to the US economy and support 18 million jobs — or 9% of the national workforce. The higher education sector alone contributes $700 billion annually, with a total student enrollment of 25 million and employment for 3 million people. State response and outlook for 2025–26 In response to the ongoing crisis, Governor Josh Shapiro's proposed 2025–26 state budget includes: $13 million for community colleges, $40 million for state-owned universities, and $60 million in performance-based funding for state-related universities like Penn State, Lincoln, Temple, and the University of Pittsburgh. Still, many experts warn that these increases may not be sufficient to reverse the financial distress already in motion. According to a 2025 report by Fitch Ratings, higher education institutions are expected to continue facing mergers, closures, and restructurings, with revenue growth unlikely to match the pace of rising labor costs and capital demands. TOI Education is on WhatsApp now. Follow us here . Ready to navigate global policies? Secure your overseas future. Get expert guidance now!
Yahoo
18-07-2025
- Business
- Yahoo
Fitch: Private nonprofits see lowest operating margins in a decade
This story was originally published on Higher Ed Dive. To receive daily news and insights, subscribe to our free daily Higher Ed Dive newsletter. Dive Brief: Operating margins at private nonprofit colleges have plummeted to their lowest levels in over a decade due to growing financial challenges, especially for tuition-dependent institutions, according to a new Fitch Ratings analysis. The median adjusted operating margin, which includes endowment funds for operations, fell to -2.0% in fiscal 2024 for the 56 private nonprofit colleges in Fitch's portfolio. Despite the median margin sitting squarely in negative territory, the highest-rated colleges still enjoyed positive operating margins. Fitch analysts expect the credit environment for the U.S. higher education sector to deteriorate in 2025 year over year, with federal policy shifts likely to increase pressure on operations and revenue. Dive Insight: The Fitch analysis reflects the challenging financial environment that private nonprofit colleges are navigating. The litany of problems includes continued inflation, threats to federal funding and an expected decline in the number of high school graduates starting next year. Amid these challenges, adjusted operating margins shrank for all types of colleges. That includes the three private nonprofits with AAA ratings from Fitch — the highest one given by the credit rating agency, signaling an institution at very low risk of default. Their median adjusted operating margins declined to 8.4% in fiscal 2024. While 'still strong,' that's down from double-digit highs seen during the coronavirus pandemic, according to Fitch. Colleges with AA ratings showed a median adjusted operating margin of 2.3%, while those with ratings below AA had negative margins, a continuation of a yearslong trend. Lower-rated colleges tend to rely on tuition as their primary revenue source, while higher-rated colleges are more likely to get large contributions from their healthcare operations or investment returns, according to analysts. 'This growing credit differentiation within the sector highlights mounting financial challenges for less selective, tuition-dependent institutions,' they wrote. Despite numerous challenges, private nonprofits brought in more tuition and fee revenue in fiscal 2024 than the year before. On average, AA-rated colleges and below saw this revenue stream increase between 1.2 and 3.8%, while institutions with AAA ratings saw a 0.1% decline. However, this year has brought even more financial turbulence. 'Operating margins and financial flexibility will remain narrow in 2025, as further increases in tuition, if any, will likely be offset by losses in other revenue streams and are unlikely to be sufficient to preserve margins,' analysts wrote. Financial challenges are not new to much of the higher education sector. But many well-known private research universities are also starting to feel the pressure due to massive drops in federal research funding under the second Trump administration. The National Science Foundation, for instance, approved only $989 million in new grant funding from Jan. 1 through May 21, according to a recent analysis from The New York Times. That's a massive 51% decline from the 10-year average over the same time period. On top of the slowdown in new grant approvals, NSF has so far terminated some 1,600 active grants, totaling $1.5 billion in research funding. Major research universities across the nation — from the University of Southern California to Brown University, in Rhode Island — have signaled they will have to turn to layoffs to grapple with these declines. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-06-2025
- Business
- Yahoo
University of Connecticut eyes workforce cuts to manage funding shortfalls
This story was originally published on Higher Ed Dive. To receive daily news and insights, subscribe to our free daily Higher Ed Dive newsletter. The University of Connecticut's top leaders indicated that workforce cuts and other austerity measures lie ahead as the public institution manages significant state and federal funding shortfalls. In a community message on Monday, the leaders said UConn and its health system are facing a combined $134 million budget gap in fiscal 2026. Driving the deficit are state appropriations set to fall over $110 million short from the previous year and some $95 million less in federal research funding due to lower awards and canceled grants. Officials plan to pare down the university's deficit in part through workforce reductions, starting with a review of temporary employees, as well as heavy hiring restrictions and a potential pause on candidate searches for open jobs. UConn's trustees plan to vote on the institution's fiscal 2026 budget Wednesday after the board's finance committee approved it Tuesday. The budget measures outlined Monday follow 'intensive efforts to build our plans to mitigate the significant fiscal setbacks we are facing,' said President Radenka Maric, Provost and Executive Vice President for Academic Affairs Anne D'Alleva, and Pamir Alpay, vice president for research, innovation and entrepreneurship, in their message Along with workforce reductions, officials said UConn will restrict employee travel, review service contracts, increase its use of foundation funds and search for new revenue. Even those measures won't be enough. UConn plans to use one-time funds — held in hundreds of accounts and budget lines throughout the university — to 'get us to the next year,' leaders said. But those funds will not remedy the university's structural budget deficit. And there are additional risks. State funding could fall below even the levels factored in for fiscal 2026 as the state manages its own budget throughout the year. In a financial presentation for the board, UConn officials also pointed to potential federal policy changes such as reduced student aid, additional tariffs, and Medicaid and Medicare cuts. On the brighter side, UConn anticipates added tuition revenue from enrollment growth in addition to increased pledges in its fundraising efforts, both of which would add to its revenue pot and offset some of the declines in public funding. As the top leaders pointed out, UConn is hardly alone in its budget woes and the cuts being employed to address them. Just in recent weeks, Temple University, University of Nebraska, Northwestern University, University of Minnesota and many others have announced or proposed significant measures, such as job cuts and tuition hikes, to cope with funding shortfalls in a turbulent financial environment for higher education. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
