The growing use of financial awards to students regardless of demonstrated need has aroused much debate. Small private colleges with more limited curricular offerings in heavy competition for students are those using no-need awards most in an attempt to solve their problems of enrollment and academic stature. However, large public and private institutions are also using these kinds of awards to attract a cadre of outstanding students. The implications of such heavy competition for students are outlined. A discussion of the arguments pro and con on no-need awards is presented touching on such topics as: raising the academic profile of an institution; use as a cost discounting procedure; enrollment incentives and inducements; use as competitive enticement against low tuition institutions; increased access to students; use as award for academic excellence; and the institution's right to financial independence and determination of priorities. The College Scholarship Service (CSS) policy statement on the use of no-need scholarships is included. The recommendation for adoption recognizes that such awards are ineffective in accomplishing their stated goals and that scarce institutional funds should be combined with increased state, federal, and institutional grant programs to enable needy students to choose freely among all postsecondary opportunities available to them. (JMF)