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...most scholarships reserved for members of an ethnic minority or gender are illegal according to Titles VI and IX of the Higher Education Act of 1965. |
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Financial Aid and Affirmative Action on Campuses Submitted by Dave Sheridan Less than one percent of all financial aid nationwide is based on the recipient's race. (Sorry, I don't recall the source or the exact figures, but as I recall, it's even less than one-quarter of one percent). Nevertheless, the Bush Administration has decided to come down hard against affirmative action on college campuses, including the use of race or gender as a basis for awarding aid. The well-publicized University of Michigan admission policy is the case driving the issue, but it extends into all aspects of higher education. As pointed out in NASFAA's Fall Training a few months ago, most scholarships reserved for members of an ethnic minority or gender are illegal according to Titles VI and IX of the Higher Education Act of 1965 (HEA), as are any awarding policies favoring such groups. And these laws do not only apply to federal aid or federal aid recipients. Institutional funds cannot be distributed on those bases either. The real irony is that civil rights were at the root of the HEA. The goal of that piece of historic legislation was to provide better access to higher education for those who had been under-represented at campuses across the country. But do we have a level playing surface yet? There's considerable evidence based on what has happened in some states that threw admissions affirmative action out the window that we don't. And if the argument is that affirmative action hasn't worked, then what do we replace it with? Those questions are beyond what can be covered in one newsletter article. What does the financial aid pragmatist do in the meantime? If you have any such scholarships on your campus, whether they are awarded by the Financial Aid Office or elsewhere, you'll want to make sure that you're in compliance with the law. There are exceptions, such as institutionally administered scholarships in which a will or bequest specifies the donor's intention for selection criteria or athletic scholarships for gender-specific teams or sports. Aid awarded by outside entities can use race as a criteria, or at least if they do anything wrong, the school shouldn't be liable if they were not involved in the selection process. The University of Michigan will wind up in the Supreme Court, and although it is not a financial aid case, the outcome there could impact race or gender-based scholarships or aid distribution. Staff members at NASFAA can provide regulatory guidance, but if you have any programs that you have any questions about, it's advisable to speak to your institution's legal counsel.
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