It may be this year's "dream school," with a record 33,683 applications, but NYU is still losing recruitment wars with the Ivy League. So following the lead of its (for now) richer Ivy competitors, the university is boosting undergraduate scholarship aid.

NYU plans to raise about $650 million for aid in the next three years as part of a $2.5 billion capital campaign. Much of the scholarship money will help talented but underprivileged kids, including first-generation college goers. In time, say university officials, NYU will offer aid packages without loans, just as Princeton does.

No doubt, NYU is on a roll. But can it really compete with the Ivies for the best and brightest students? Probably not. It's currently ranked 32nd by U.S. News (tied with Brandeis and Wisconsin-Madison), so the top 10 remains a long way off. But money will make a difference, so watch for a steady, if not dramatic, climb.