Two administrators appeared before the University Academic Senate to testify about Marquette’s aid practices. Reports allege that Marquette University is manipulating its financial aid program to boost its ranking.
Marquette University’s officials defend institution’s aid practices
Two members of Marquette University’s Office of Student Financial Aid appeared before the University Academic Senate on March 23. They were there to speak about a report that indicated that the university was pushing low-income families into high-risk loans.
New America published a report on February 23 on the subprime crisis at universities. Marquette University was one of the 41 universities listed to be fuelling the crisis. The report indicated that 23 selective private universities and 18 public flagship and research institutions appeared to steer families towards risky loans.
Instead of offering more money in scholarships to students with financial need, institutions offered money to wealthier students. This university allegedly did this to boost its ranking.
However, in order to fill the gap, it appeared Marquette was pushing lower-income families to take out parent PLUS loans. This is a federal loan option with no borrowing limits and minimal requirements, but higher interest rates.
The Marquette officers rejected the notion that the university indulged in such acts. The two officials at the Senate meeting defended the university.
Brian Troyer, vice president for enrollment management, said the report is not in line with what the university does.
“We actually take a couple additional steps to ensure that students—particularly low-income students—aren’t feeling like they’re being pressured into a particular decision,” he said.
Similarly, Zack Goodwin, assistant vice president of student financial aid, said that the university’s data indicated a contrary trend to New America’s report. He noted that Marquette has been able to meet 85% of the financial needs of enrolled students.
“Our least resourced families, on average, borrow about 40% less than our other families,” he also said.
New America report indicates unethical financial aid practices
Stephen Burd authored the New America’s report. The report indicates that 41 universities, mostly in the south, are engaging in unethical aid practices to boost their rankings.
According to the report, these institutions appear to be providing large tuition discounts to wealthier students. They also steer low-income families to Parent PLUS loan debt which they cannot afford.
It appears that these 41 universities spent $2.4 billion of their financial aid money on students who lacked financial need in 2023. About $2 of every $5 of these schools’ institutional aid went to non-needy students.
Over 32,000 families are still stuck with the PLUS loans after the recipient’s graduation. A potential subprime PLUS crisis is imminent due to the damage already done.