<p>Yes, 1966, the system is set up at many private colleges so that the kids who just barely get admitted and who come from relatively affluent families pay full sticker price, along with the international students. Almost everyone else gets some form of discount, which can average 30 to 50% at many colleges. Merit aid also becomes an ego boost for many students and parents. Some need-based aid is actually hidden as merit aid. </p>
<p>When a private college asks to know the names of other colleges where you have applied, it can sometimes impact aid offers. The goal is usually to list several private colleges that they consider prime competitors and some in-state publics, but not too many or too few.</p>