Financial aid programs that are simple and transparent are most effective for low-income students when it comes to not only getting those students to apply for the aid, but getting them enrolled in college at all, according to a scholarly paper released this week.

In a review of more than a dozen studies looking at how to make college more affordable and attainable to the neediest students, the paper “Into College, Out of Poverty? Policies to Increase the Postsecondary Attainment of the Poor” from the National Bureau of Economic Research looked at the effectiveness of a variety of programs, including popular federal and private scholarships, Pell Grants and subsidized student loans. The paper concluded that the easier it is for students to apply, the more likely they will be to apply, and the more likely they’ll be going to college as they wouldn’t have the funding to do so without applying.

The information that students are intimidated by paperwork and financial aid information isn’t surprising. A recent blog post showed the results of a recent study on how professional assistance while filling out the FAFSA boosts the number of students filling out the financial aid application and receiving generous funding. What was more surprising this time around was that certain programs lauded for their assistance of low-income students could be doing better, according to the paper.

An article in Inside Higher Ed today describes the authors’ position on the Pell Grant in particular. While the program is effective in targeting low-income students who may not have had the opportunity to attend college otherwise, the amount of paperwork required to receive an award makes the program not as accessible as it could - and should - be. A piece of a recent bill passed in the House and now awaiting Senate action ( the Student Aid and Fiscal Responsibility Act of 2009) would simplify the financial aid application process and potentially make low-income students more comfortable with the process.

The paper also concluded that programs tied to academic performance and that have a broad base when it comes to who can apply - even if the awards are not specifically tied to a student’s financial need - are more desirable to low-income students. Why would the neediest students want to compete against a larger pool of applicants for merit-based scholarships? Perhaps the applications for these awards are less time-consuming or easier to manage. Inside Higher Ed gives the example of Georgia’s HOPE program, which awards free public tuition to any student with a 3.0 GPA in high school.

The paper was written by David Deming of Harvard University and Susan Dynarski of the University of Michigan, with support from the Robin Hood Foundation. The Robin Hood Foundation is preparing to release a book on the topic: Targeting Investments in Children: Fighting Poverty When Resources are Limited. For more information on financial aid application strategies, including tips on filling out the FAFSA, browse through our site so that you’re prepared when it’s time to find money for college.

Posted: under College News, Financial Aid, High School News.
Tags: college news, Financial Aid, merit-based, need-based

Comments (0) Sep 30 2009

A new study out today shows that it literally pays off to ask for help if you’re feeling lost while filling out your FAFSA. The National Bureau of Economic Research has found that low- and moderate-income financial aid applicants who received help from professional tax preparers when filling out their FAFSAs not only received more generous aid packages, but were more likely to apply for aid compared to those navigating the process independently.

The FAFSA can be daunting, and it isn’t surprising to hear many students are intimidated by the process or skeptical that they will  receive any need-based aid at all. Still, it’s rare to see data on such anecdotal topics. The study was based on results from three groups. One group received help from several H&R Block tax professionals; the second received some financial aid advice, but did not receive personalized assistance; the third received no help in completing their FAFSAs. The results showed that it isn’t enough to tell students to fill out the FAFSA and give them the form. The group with the most personalized assistance fared best in terms of how much funding they were approved for, and more generally, whether they would be going to college at all.

The federal government and higher education advocates have been working for years to come up with ways to simplify the financial aid application process. The Student Aid and Fiscal Responsibility Act of 2009 that recently passed in the House of Representatives includes a clause that would streamline the application and make it easier to understand for students. The study suggests that students who have trouble filling out applications or who avoid the financial aid process altogether for one reason or another are significantly less likely to go to college. Often the financial aid students receive is a determining factor in the campus they’ll find themselves come fall, and if you don’t apply for the need-based aid, no one is going to hand you any or often even urge you to fill out that FAFSA application.

Researchers from the study hope the results will lead to programming and services where students are not only told to fill out the applications as part of the college admissions process, but receive automatic assistance in completing their FAFSAs. If you’re nervous about doing it on your own come Jan. 1 when the applications first become available for processing, ask for help. Browse through our site to find tips on landing the most free money and filling out the application correctly, as the smallest mistake can lead to delays in not only the processing of your FAFSA, but in the awarding of scholarships, grants and student loans that you’re relying on to pay for that college degree.

Posted: under FAFSA, Financial Aid, Tips.
Tags: FAFSA, Financial Aid, need-based

Comments (0) Sep 23 2009

Although need-based financial aid has remained steady at most colleges, some schools are looking at their merit-based scholarship programs as the next place to cut if budgets continue to shrink. Merit-based scholarships, which do not usually consider need, rely on GPA and standardized test scores as measures of students’ academic achievement and potential for excellence on the college level.

A criticism has been that the awards go disproportionately to students of wealthy families who may have the resources to better prepare for tests and assistance outside of the classroom. However, cuts in merit-based scholarship programs may also affect the middle class, a group of students who may receive some funding, but due to their parents’ combined incomes will receive far more in student loans than scholarships and grants compared to lower-income applicants. Perhaps that’s how it should work, but middle-class families with steady incomes don’t always have the resources left over to contribute much to college savings accounts like 529 Plans, especially in a tough economy.

Should merit-based scholarships then also consider some degree of need before disbursement? An article this week in The Chronicle of Higher Education described several schools looking to trim their merit-based scholarship programs, especially those that rely on state funding to exist. In Florida, the Bright Futures Scholarship Program will stop funding full public-college tuition in favor of a set amount based on credit hours. In West Virginia, Promise Scholarship awards will max out at $4,750 rather than the former full rides. In Michigan, a state that has been hit particularly hard in this economy, their own Promise Scholarship program may be cut entirely. The University of Texas recently announced it would no longer be sponsoring National Merit, a popular national scholarship program that students qualify for based on standardized test scores. Students there had been able to receive $13,000 over four years. The university promises an increase in need-based financial aid to assist those students who had been receiving National Merit aid but who also qualified for many of the federal need-based financial aid programs.

With a limited amount of funding coming from both the state and federal level, schools have to decide how best to approach financial aid. The trend has been to place a higher importance on need, as the rationale is that many students who had been receiving merit-based scholarships would be able to afford college anyway, or be eligible for outside academic scholarships. And those who would have applied for need-based financial aid before the recession are only in need of more aid today.

One school is taking the Good Samaritan approach. At Pennsylvania State University’s Schreyer Honors College, parents and the college bound who did not fill out financial aid forms but received the school’s $3,500 merit-based scholarships for gaining admittance to the honors college are being asked to consider allocating that money instead to accepted students with a higher level financial need. In short, the money goes to students who really need it. Should it be more complicated than that?

Posted: under College Costs, College and the Economy, Scholarships.
Tags: College and the Economy, College Costs, merit-based, need-based

Comments (0) Sep 22 2009

The Families of Freedom Scholarship Fund will provide $8.4 million in college scholarships this coming school year to the children, spouses and domestic partners of those who lost their lives in the September 11th terrorist attacks.

About half of that total has already been distributed for the fall semester to 520 students in mainly the New York and New Jersey region. The rest will go out in December for semesters starting in January. The needs-based fund, managed by Scholarship America, was created shortly after the terrorists attacks in 2001 thanks to an initial $1 million pledge from the Lumina Foundation for Education and the outpouring of donations that followed. Colleges and universities, organizations, and individuals across the country led by fundraising campaign co-chairs President Bill Clinton and U.S. Senator Bob Dole eventually raised about $125 million, with more in the years that followed. More than $46 million has been awarded since January 2002 to about 1,400 students, and the fund is set to continue giving out scholarships through 2030.

The average award this year was about $16,000, with everyone receiving at least $1,000 and one top award of $40,000. Those who were left permanently disabled in the attacks are also eligible. The fund’s organizers claim there are still more than 5,400 students eligible for the scholarships. About $7.4 million was awarded for the last school year, and if this year’s disbursement is any indicator, the scholarship amounts are only expected to rise.

Several companies and organizations set up scholarship funds for the families of victims in the September 11th terrorists attacks, including the National Law Enforcement And Firefighters Childrens Foundation Scholarship, which awards scholarships to children of law enforcement and firefighting personnel who were lost in the line of duty, and the Cantor Fitzgerald Relief Fund, which provides emergency short-term financial assistance and emotional and mental health support to those who lost loved ones in not only the terrorist attacks, but other disasters and emergencies.

Posted: under College News, Scholarships.
Tags: college scholarships, need-based, scholarship winners, september 11

Comments (0) Sep 11 2009

Penn State University’s Schreyer Honors College offers admitted students $3,500 per year merit scholarships, a common practice among state colleges that want to entice the best students to attend.  Students at Penn State and their parents are doing something unique with these scholarship awards, though: they’re giving them to other Schreyer students.

Parents of scholarship recipients who did not apply for need-based financial aid receive a letter asking them to consider making a donation in the amount of the scholarship their children received.  The letter, penned by the parents of other Schreyer students, emphasizes the amount of unmet financial need some of their children’s classmates face and asks them to consider whether they need the extra $3,500 in order to pay their tuition bill.  If not, they are asked to give the money to students for whom the extra money could make the difference between attending college at Penn State and staying home.

The university stresses that students are not being asked to give up their academic scholarships in this campaign. Rather, they ask that parents who can spare the extra money because their child received a scholarship would consider donating to help other deserving students who last year had more than $1 million in unmet financial need.

Honors colleges, even at large state universities, tend to be relatively close-knit communities of top-performing students who are engaged in their studies and their campus communities.  It’s not surprising, then, that parents of Schreyer Honors College students hit upon an idea to help their children’s struggling classmates last year when the economy first began to sink into recession.  The campaign was initiated by parents and supported by the university, which sends the letters on the parents’ behalf.

Last year’s appeal raised around $228,000, with over $120,000 of that going directly to 34 students who needed help paying for school.  The remaining $100,000 went towards establishing an endowed trust to ensure that this effort continues helping students in the future.  So far this year, the campaign has raised $13,000 from 11 donors.

Posted: under College News, College and the Economy, Financial Aid, Scholarships.
Tags: academic scholarships, College and the Economy, college news, college scholarships, Financial Aid, merit-based, need-based, Pennsylvania scholarships, Scholarships

Comments (0) Sep 09 2009

The University of Texas has announced plans to withdraw as a sponsor of National Merit, a popular national scholarship program that students qualify for based on standardized test scores.  In an effort to focus on providing need-based financial aid, the university will no longer offer scholarships specifically for National Merit Scholars.  The University of Texas, which was second only to Harvard University in the number of National Merit Finalists it enrolled, offered qualifying students awards worth up to $13,000 over the course of four years.

Texas is not the first major university system to choose to cease participating in National Merit, a program that offers $2,500 scholarships to high school juniors who do well on the PSAT, with the potential for honorees to receive much larger scholarship awards from partner companies and universities.  Other institutions, including the University of California system, have previously chosen to withdraw sponsorship of National Merit, while many other schools have chosen not to offer awards specifically for National Merit winners.

National Merit has previously drawn criticism for its strong emphasis on high PSAT scores (other application materials are considered in selecting finalists, but semifinalists are chosen solely based on test scores).  Students from wealthier families who have access to the best high schools and a variety of test preparation resources typically do best on standardized tests, such as the PSAT, which results in scholarship awards like National Merit skewing towards affluent students who need less assistance paying for college.

A University of Texas official cited similar reasoning in the university’s decision to stop awarding National Merit Scholarships, stating that only one fourth of students receiving the scholarships typically bothered to apply for federal student financial aid, indicating the vast majority had access to other means of covering their college costs.  The students who are most likely to be hurt by the loss of this scholarship opportunity will likely be helped by the increase in need-based financial aid that the university is promising.

University officials stressed that applicants who would have been eligible for this award will still be able to compete for other academic scholarships, and the undergraduate students currently receiving this award will continue to do so for their full four years of eligibility.  Still, this announcement is likely to upset some students and to fuel the fires of the ongoing debate over merit-based versus need-based financial aid in colleges and universities.

Posted: under College Costs, College News, Financial Aid, High School, Scholarships.
Tags: academic scholarships, college news, college scholarships, Financial Aid, high school students, merit-based, need-based, PSAT, state colleges

Comments (0) Sep 02 2009

Over the course of the last year, a number of colleges and universities have begun to offer scholarship opportunities for people who have found themselves out of work and in need of further education or job training.  Yesterday, U.S. News profiled several newer community college programs, including several full-tuition scholarships, but even more awards are out there.  Here’s a run-down of some of the scholarships for displaced workers that we’ve found.

Community College Scholarships

Scholarships for recently unemployed students offered by community colleges are the most common.  Colleges in several states are offering free tuition for one to two semesters, or even more, for displaced workers.  Some, such as Oakton Community College in Illinois and the Community College of Allegheny County in Pennsylvania stipulate certain degree or certificate programs for their tuition benefits, and others, like several community colleges in New Jersey, will allow students to enroll in any course with empty seats.  Others are offering partial tuition discounts, such as Anoka-Ramsey Community College in Minnesota.

Michigan has launched a state-wide No Worker Left Behind program, which provides up to two years of free tuition for unemployed and underemployed workers at state community colleges.  Students can also apply the credits towards an undergraduate degree at a state college or university.  To qualify, students must be pursuing degrees that will lead to employment in high-demand occupations.

Undergraduate Scholarships

This summer, DeVry began offering scholarships to students who have enrolled at one of the seven schools owned by DeVry and who have lost their jobs in the last 12 months.  As one example, the Employment Gap Scholarship gives students $1,000 per semester towards their tuition at DeVry.

Many other four-year schools have also launched generous aid programs, or even offered full-tuition scholarships, for new and returning students who are facing economic difficulties.  A number of these scholarships and grants may be available to displaced workers, especially if you now qualify for a Federal Pell Grant after losing your job.

Scholarships for adult students are also worth looking into. While only a few are specifically for the recently unemployed, several are designed to generously aid adults who are enrolling in undergraduate programs.

Graduate Scholarships

In addition to offering free career center services, several universities are also aiding their alumni through tuition discounts on graduate programs and additional certification and training.  Manchester College in Indiana will allow students who fail to find a job or a graduate program within six months of graduation a year of free coursework.  Similarly, St. John’s University in New York allows laid off alumni to attend its graduate programs for half price.

Government Benefits

Recently, the Obama administration began a national push for states to grant full unemployment benefits to recipients who choose to enroll in a college degree program, as incentive for unemployed workers to attend college.  Additionally, financial aid adminstrators have been instructed to use greater lattitude in dealing with financial aid appeals from students who have lost their jobs, which could result in more federal grant money for returning students.

Posted: under College News, College and the Economy, Financial Aid, Scholarships.
Tags: College and the Economy, College Costs, College Grants, college news, college scholarships, community college, Financial Aid, full-tuition scholarships, graduate student scholarships, local scholarships, need-based, returning students, Scholarship Search, Scholarships, Tips

Comments (0) Aug 20 2009

Students who have faced and overcome obstacles and remain committed to the goal of receiving a four-year degree can receive a substantial amount of help towards their goal with this week’s Scholarship of the Week.  The Horatio Alger National Scholarship Program will award 104 scholarships in the amount of $20,000 to high school seniors from low-income backgrounds who are planning to pursue bachelor’s degrees.  Ideal candidates will demonstrate a commitment to use their college degrees in service to others.

Prize:

$20,000 national scholarships, plus additional state and local scholarships.

Eligibility:

Posted: under High School, Scholarship of the Week, Scholarships.
Tags: college scholarships, high school student scholarships, high school students, need-based, Scholarship of the Week, Scholarships

Comments (0) Aug 17 2009

This week’s Scholarship of the Week is one of those rare scholarship opportunities that reward students for doing something they quite possibly already wanted to do.  The Zinch Ammunition for Tuition $25,000 Scholarship is a scholarship award for high school students who complete a profile on Zinch.com.  Applicants are judged based on both merit and need, as determined by the information they include in their Zinch student profiles.

So why is this something you might already want to do?  A profile on Zinch not only allows you to compete for a sizable amount of scholarship money, but also allows you to find colleges that cater to your interests and get in touch with recruiters from colleges you want to attend.  It’s not often you find a scholarship competition that not only helps you pay for college, but helps you find a college, as well.

Prize:

$25,000

Eligibility:

Posted: under High School, Scholarship of the Week, Scholarships.
Tags: college scholarships, high school students, merit-based, need-based, Scholarship of the Week, Scholarships

Comments (0) Feb 02 2009

The University of California system’s board of regents is considering a proposal to extend financial aid covering full tuition to families earning under $60,000 per year.  The change, suggested by University of California President Mark Yudof, is still under review and will likely be voted on next month.

The concerns that motivate this move are becoming more pressing and are shared by many figures in higher education.  The University of California, like other state university systems, is facing budget cuts and plans to increase tuition in response.  California is also one of the states hardest hit by the recession, especially the collapse of the housing market.  There is widespread concern that these factors may put a college education out of reach for many.  The University of California system also serves a relatively large number of low-income and moderate-income students, so Yudof’s proposal could potentially benefit a substantial portion of the student body.

Despite economic hardship and shrinking endowments, California is not alone in considering increases to college scholarships and grants for students struggling the most financially.  A number of prestigious schools have eliminated student loans for less affluent students in recent years.  These significant financial aid packages may be becoming more of a draw students this year, as many of the most prestigious and most generous schools are reporting double-digit increases in applications for the 2009-2010 academic year.

Posted: under College News, College and the Economy, Financial Aid.
Tags: College Grants, college news, Financial Aid, full-tuition scholarships, need-based, Scholarships

Comments (0) Jan 23 2009