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If my DD's college (within the same state) were to offer 1000 "presidential" scholarships (full tuition) annually instead of the 65 that it does offer, I would feel no differently about the relative value of that award.
Does 1000 students per year represent the entire student body, or would this represent merit scholarships?

Is the anticipated effect one of increasing the number of students who would strive and earn the merit scholarship... or would the effect be a disincentive to achieve due to possibly rewarding a lack of skills equally with acquisition of skills?

How would the tuition be funded, in order to be free at point of service?