Based on our, (Please click here: recent research and analyses), the newly proposed College Affordability Rating (CAR) may not have significant impacts on top tier schools because federal funding or federal financial aid may not a big part of their revenue or income. However, for smaller schools, federal funding is about life-and-dead especially for low-income enrolled students. Needless to say that graduation rate (GR) which is one of the components in calculating the CAR is much lower at smaller colleges. On average, GR at the Ivy League institutions is well above 90% while smaller schools may have as low as 10%. It does not need to have a rocket scientist to figure out the reasons why. High achiever students will certainly prefer to attend top-tier schools, especially if they are lured with fat financial package.

Smaller school will have a harder time with the new CAR regulations. However, AAEA will help smaller schools to improve their graduation rate. To read the solution, please click here.

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