Adding yet another layer of complexity to the process of selecting colleges, U.S. colleges are now redefining their policies on need-blind and need-aware admissions. Typically, certain schools maintain a policy where every student they admit will be able to attend the school without taking on too much debt (less than $5,000/4 years). This policy requires to offer grants to admitted students who cannot pay for the cost of attendance on their own.
However, this policy can get expensive if the school admits too many financially “needy” students. This is because the school is forced to pay for the students irrespective of whether the school can afford it that year. To prevent budget deficits, some schools will refuse to admit too many financially “needy” students, even if those students are perfectly qualified applicants. These schools are considered “need-aware” in admissions because financial need plays a factor in their admissions decision.
Conversely, schools that are “need-blind” do not factor financial need into the admissions decision. “Need-blind” schools will admit students based solely on merit and only later figure out the financial aid package for each admitted student. Sometimes, these “need-blind” schools will not be able to ensure that every admitted student can attend without taking on student debt. Even worse, some students who claim to be “need-blind” actually end up admitting much less financial “needy” students than “need-aware” schools.