Stanford chooses legacy admissions over state funding: Here's why wealthy connections still trump California's ban

Stanford University has announced it will no longer participate in California's state-funded student aid programmes in order to maintain its practice of considering legacy and donor connections during undergraduate admissions.

The move allows the university to bypass a new state law aimed at limiting the influence of alumni and donor ties in admissions decisions.The law, which takes effect on September 1, restricts private nonprofit colleges that receive state-funded student aid from using legacy or donor status as a factor in admissions. Institutions that continue the practice while accepting such aid are required to publicly disclose detailed admissions data.

Stanford's decision ensures it avoids these reporting requirements and associated public scrutiny.Stanford confirms continuation of legacy and donor admissionsStanford stated it will continue to factor in applicants' ties to alumni and donors when selecting its undergraduate class for autumn 2026, according to reporting by Higher Ed Dive. The university explained that its withdrawal from state-funded aid is "in order to comply with recent California legislation."

Stanford will instead use its own institutional scholarship funds to replace the state aid.As per institutional data cited by Higher Ed Dive, 13.6% of Stanford's admitted undergraduate class in autumn 2023 had donor or alumni connections. That year, the university's overall undergraduate acceptance rate stood at just under 4%.California law limits but does not prohibit legacy admissionsThe legislation, signed into law by Governor Gavin Newsom, was originally introduced by former California Assemblymember Phil Ting following the US Supreme Court's 2023 ruling that ended race-conscious admissions.

Ting's proposal initially aimed to impose financial penalties by cutting access to the Cal Grant — a state financial aid programme for students from low- and middle-income families — for institutions that continued legacy and donor admissions.However, as Higher Ed Dive reported, the final version of the law did not include financial penalties. Instead, it requires schools to disclose demographic and admissions data for applicants with and without legacy or donor ties.

It also allows the California Department of Justice to publish a list of noncompliant institutions on its website, implementing a name-and-shame approach rather than direct funding cuts.Stanford students will not see financial aid reductionStanford confirmed that current and incoming students who were receiving aid from state programmes will not experience a decrease in financial assistance. "Students do not need to take any action," the university stated in a press release issued on July 29, as reported by Higher Ed Dive.Stanford continues to offer significant internal aid. Students from families earning below $100,000 annually pay no tuition, room, or board, while those from households making under $150,000 are exempt from tuition fees.TOI Education is on WhatsApp now. Follow us here.