Free Republic

PHILADELPHIA — Students who are accepted into Penn State University's prestigious honors college get more than academic feathers in their caps. They get $3,500 annual merit scholarships. But given the tough economic times, the school is making an unusual request: Would parents consider donating that money back? The fundraising appeal for Schreyer Honors College leans on parents who have not applied for financial aid for their children, encouraging them to share their good fortune with needier students. It appears to be working. The first appeal to 75 families last year raised about $228,000.... Some schools and states have tightened criteria...

AUSTIN, Texas — The University of Texas at Austin is pulling out of the National Merit Scholarship Program to focus on needs-based financial assistance. The university — second only to Harvard in the number of merit scholars enrolled — said budget pressures were causing it to end its participation in the merit-based program, which awards scholarships to top high school achievers. Colleges nationwide are struggling to meet higher demand for financial aid amid fewer resources from states and their own endowed scholarship funds. “The financial constraints brought about by the economy on families and the university require the redirection of...