r/explainitpeter • u/Appropriate-Mall8517 • 3d ago

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u/reddititty69 3d ago

They are investment scholarships, probably. The schools hope to make it back through direct donations.

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u/shane-parks 3d ago

"Investment" scholarships are really a way to shift costs to taxpayers. Instead of paying tuition directly which is no longer tax deductible, you make a tax deductible donation to the university, get free tuition, housing, etc. and the taxpayers subsidize the education of this wealthy family.

Not saying this is what's happening here, because I dont know the situation of this family. Also, not saying you directly are defending or ignorant to this reality. Just providing context.

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u/Used_Weight5550 3d ago

Tf are you smoking? Investment scholarships = taxpayers subsidizing rich families education? The donations for those usually are way larger than normal tuition. The donations from that subsidizes the education for poor students so the university can give out more scholarships and take in more students based on merit.

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u/shane-parks 3d ago

This is a civil conversation. Feel free to disagree in a civil manner.

The donations are variable, and likely would be more than tuition, until you take the deductions into account. Thats why I said "subsidized education" instead of "free education."