A bunch of private colleges have been in a financial aid arms race for years now, offering bigger and bigger merit scholarships to lure the best students. This is nice for the students who get big merit scholarships. But it's not so nice for everybody else. Colleges have to come up with the money for those merit scholarships somehow — and they've done it in part, by jacking up tuition. (We did a story on this last year.)
"This is not a healthy situation if what we are trying to do is utilize the limited resources that we have to educate students," S. Georgia Nugent, president of Kenyon College, told me today.