Turning Merit Aid Into Donations

Pennsylvania State University is trying a new strategy to raise funds for student aid. The Associated Press reported that the university is sending an appeal to the parents of students who were admitted to the honors college (who get a $3,500 merit scholarship) and who didn't apply for need-based aid. The appeal notes that the bad economy has increased demand for need-based aid, and asks parents to donate back the merit scholarship. So far, Penn State officials have raised $228,000 through the appeal.