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<p>Ah, but now Swat’s diversity falls and luxury-segment buyers value diversity, so it’s harder to attract full-fare customers. On top of the fact, that the need-based aid policy means that we are already losing some of our wealthier customers to merit-aid schools. </p>
<p>We might be able to generate revenue by changing our need-based aid policy. For every Pell Grant type student we cut loose, we could offer two or three wealthy high-stat kids $10k each and make them Garnett Tide Scholars. That would probably keep the SATs up high enough to maintain the USNEWS ranking and incrementally increase our revenues. Diversity would take a hit which would change the character of the school and hurt us with the really wealthy customers.</p>