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Originally Posted by SoLiDUS

Scholarships should be based on one thing only: intellectual ability. To pretend that community service and other assorted feel-good requirements are important and necessary pre-requisites is... dumb.

The current system works better for universities own gains. Think about it, if they know someone will work hard, graduate from their university, continue working hard and donate lots of money back to them, they are gonna want them. Intellectual ability, while it does show the university that you could succeed, it doesn't prove that you will succeed, they don't know if you are a hard worker or if you even care about working. So it's more beneficial to a college/university to give scholarships to people who they know are gonna get them money.