Archive for ‘merit aid’

September 16, 2014

Posse Foundation boasts a 90% graduation rate

by Grace

The Posse Foundation makes college more accessible for students who may be overlooked by top schools because they do not meet their traditional admissions measures.  Although the program does not screen based on need, many Posse Scholars come from low-income areas.  Students are chosen based on a rigorous selection method, and graduate from college at a 90% rate.

What Is Posse? Posse is a college access and youth leadership development program that identifies, recruits and selects student leaders from public high schools and sends them in groups called Posses to some of the top colleges and universities in the country. A Posse is a multicultural team made up of 10 students. It acts as a support system to ensure that each Posse Scholar succeeds and graduates from college. Posse Scholars receive four-year, full-tuition leadership scholarships from Posse partner colleges and universities.

How Did Posse Get Its Name? In 1989, Posse Founder and President Deborah Bial was working with talented urban young people. She watched these students go off to college, only to see them return within a semester having dropped out. Knowing that these students were bright and capable, she couldn’t understand what was making them leave college. When she asked them what happened, one student replied, “If I only had my posse with me, I never would have dropped out.” That simple idea, of sending a group—or posse—of students together so they could “back each other up,” became the impetus for a program that today has sent hundreds of students to top colleges and universities throughout the United States.

Why Posse? The Posse Foundation has three goals: 1) to expand the pool from which top colleges and universities can recruit outstanding young leaders from diverse backgrounds; 2) to help these institutions build more interactive campus environments so that they can become more welcoming institutions for students from all backgrounds; 3) to ensure that Posse Scholars persist in their academic studies and graduate so that they can take on leadership positions in the workforce.

Does Posse Work? Since 1989, Posse has recruited and trained 4,884 students who have won $577 million in leadership scholarships from Posse partner colleges and universities. More than 70 percent of Scholars have either founded or become leaders of campus organizations. Scholars act as change agents on campus, significantly contributing to the influence and longevity of student organizations. Most important, Posse Scholars persist and graduate at a rate of 90 percent. Posses help the retention of non-Posse students who are not part of the majority culture by fostering an inclusive campus community.

Posse recruits students from Atlanta, Boston, Chicago, Houston, Los Angeles, Miami, New Orleans, New York, and Washington, D.C.  It works with 51 partner colleges and universities across the country.

August 18, 2014

Are you eligible for a college tuition discount?

by Grace

How do you know if a particular college is likely to offer you a discount on their tuition price?  Before you even apply, you can get an estimate by running your specific profile data through a Net Price Calculator (NPC), a tool that can be found on every college’s website.

Forbes ran a Net Price Calculation for five schools using several hypothetical scenarios.  The results show discount rates (financial aid) that would be awarded given specified parameters.

… two types of students, one from a family with an annual income of $300,000 and another from a single-earner family making a mere $12,000 a year. We tested two different academic scenarios: a supersmart kid scoring 1540 on his SAT, with a 4.0 GPA and in the top 10% of his class, and a “B” student scoring 1250 on the SAT, with a GPA of 3.0 and in the top 50% of her graduating class.

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The biggest surprise is that RPI gives more financial aid to English majors than to engineering students.

As you can see all the top institutions except well-endowed Amherst offer discounts or “merit” aid. Only Rensselaer Polytechnic Institute (RPI) differentiates its aid on its calculator by the student’s intended major as well as by income and ability. RPI clearly wants more poets and is willing to pay for them. President Nixon’s alma mater, Whittier College in southern California, clearly isn’t eager to attract lower-income students. In our test it offered an additional grant of only $1,334 to the low-income overachiever. Even after its ample discount, the needy student’s family still has to come up with half the cost of attendance.

This illustration is a reminder that a Net Price Calculator can help guide your college search.

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Lucie Lapovsky, “What’s Your Tuition Discount?”, Forbes, 7/30/2014.

July 16, 2014

Don’t fall in love with a college you can’t afford

by Grace

Should I apply to colleges I don’t think I can afford?

Michelle Kretzschmar of Do It Yourself College Rankings answers that question.

No–with a big assumption. The assumption is that you already know approximately how much you can afford and how much financial aid a college is likely to give you. That means that you have already used a calculator such as the FAFS4caster to estimate your expected family contribution (EFC) and the college’s net price calculator.

Searching for merit money could be a reason to apply to colleges that are otherwise unaffordable.

There is a situation where you might apply to colleges that you don’t think you can afford. These are lessor known colleges where your test scores put you in the top 25% of applicants and makes you a candidate for substantial merit money.

But you have to stand firm.  Don’t fall in love with a school you can’t afford.

However, this still requires that you have firmly established what you can afford and be willing to turn down those schools that don’t become affordable even after merit money is awarded. Definitely, do not fall in love with a school you if you don’t know you can afford it.

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Michelle Kretzschmar, “Should I apply to colleges I don’t think I can afford?”, Do It Yourself College Rankings, October 22, 2012.

May 21, 2014

Apply now for the New York State STEM full-tuition scholarship

by Grace

The deadline to apply for the newly introduced New York State STEM scholarship is August 14.

The NYS STEM Incentive Program provides a full SUNY or CUNY tuition scholarship for the top 10 percent of students in each New York State high school if they pursue a STEM degree in an associates or bachelor degree program and agree to work in a STEM field in New York State for 5 years after graduation.

The dual goals of the program include helping students pursue STEM careers and promoting the state’s economy.

Innovative programs like the STEM Incentive Awards will help students compete in academic fields essential to the future of our state and nation,” said CUNY Interim Chancellor William P. Kelly.

“Through this program, New York State is helping to foster a connection between a student’s interest in STEM and their ability to successfully pursue a STEM career,” said Elsa Magee, Acting President of New York State Higher Education Services Corporation (HESC), the state agency that will administer the program. “These awards will encourage more of our most talented students to pursue their love of science, technology, engineering and math in New York State, which benefits our State economy directly and the global economy, generally.”

Failing to fulfill the program requirements can result in significant penalties.  For example, if a recipient does not complete the STEM degree or does not follow through after graduation on the requirement to work “full-time for five years in the fields of science, technology, engineering, or math in New York State, while maintaining residency within the State”, he must pay back the award.

The full list of approved occupations includes farmers, computer programmers, web developers, actuaries, cartographers, engineers, and secondary and postsecondary science teachers.

There does seem to be some flexibility in the choice of occupations.

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Related:  “Free tuition at New York state universities for top STEM students?” (Cost of College)

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 Sarah Darville, “State launches STEM scholarship for SUNY, CUNY-bound grads”, Chalkbeat New York, May 6, 2014.

April 9, 2014

Want to appeal your college financial aid?  Go for it

by Grace

Ron Lieber in the New York Times has some tips for students hoping to appeal their college financial aid packages before making the final decision on where to enroll in the fall.

A change in a your financial situation holds the best chances for a successful appeal.

Your best shot with an appeal will come from a change in your family’s financial circumstances since you applied for aid. Possibilities include job loss or other reduction in income, new health expenses, death of a parent, disability of a family member, nursing home costs, natural disasters or parental credit woes that make borrowing impossible.

Adjusting need-based aid may be a more straightforward proposition, but that’s not always true since need-based awards are often based on a ‘student’s academic merit’.

Some tips:

Some schools automatically match offers from similar schools.

Cornell instantly corrects itself if you’ve got higher need-based aid offers from other Ivy League schools or M.I.T., Duke and Stanford; it will match that offer, no questions asked.

Carnegie Mellon appears to be acting similarly, noting on its site that the university has “been open about our willingness to review financial aid awards to compete with certain private institutions for students admitted under the regular decision plan.” …

Go for it.
Based on some feedback from colleges, Lieber seems to suggest that the odds are not bad that an appeal will result in increased aid.

The worst that can happen is that the financial aid office says no …

Related:  Will colleges negotiate financial aid packages? (Cost of College)

March 24, 2014

Need-based college financial aid often based on ‘student’s academic merit’

by Grace

When some colleges award financial aid, ‘even “need-based” grants aren’t based solely on need: The size of the grants also depends on a student’s academic merit’.

While families do not usually know the details of how financial aid is disbursed, colleges have access to comprehensive, detailed information about applicants in what amounts to “a massive information imbalance”.

Most colleges offer “vague and superficial” disclosures about how they allocate their financial-aid dollars, said Mark Kantrowitz, a financial-aid expert with Edvisors, which publishes websites about paying for college. “They don’t give details about the actual formulas they use.”

Schools use “financial aid leveraging” to attract stronger students.

While universities don’t want to disclose the details, they have become increasingly strategic in recent years about how they use their aid and which students get it. Aid isn’t just given to students in need, it’s also used now for what schools call “financial aid leveraging” — often to entice high-scoring students who will help a school’s ranking or to give a small, feel-good discount to attract out-of-state students who will still end up paying a higher price.

Boston University is unusually candid about its strategy of using need-based financial aid to attract stronger applicants.

If you are an incoming student, your application for a need-based BU grant award will be considered based on several factors. These include calculated financial eligibility, academic achievement, and the availability of funds for your program of study.

BU publishes informative student profiles showing average aid awards.  I ran some simplified* Net Price Calculations that further illustrate how their financial aid works.  Given the same financial need, the stronger student is would receive more need-based financial aid.

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The Straight-A Student is estimated to receive $35,500 in grants and scholarships, compared to only $12,00 for the Solid B Student.  Remember, this is need-based financial aid.  Merit scholarships may be awarded in addition to these amounts.

* In these examples, total earned income was $80,000/year.

Marian Wang,  “How Exactly Do Colleges Allocate Their Financial Aid? They Won’t Say”, ProPublica, Feb. 25, 2014

Related:  Psst – one of Duke’s so-called merit scholarships is actually need-based (Cost of College)

March 12, 2014

Public universities want more ‘smart students who can pay’

by Grace

Public colleges and universities have shifted their financial aid priorities away from need-based to merit-based awards.  Low-income students are feeling the brunt of this change, but pressure on schools to admit only college-ready students and to raise revenue will probably cause this trend to continue.

Public colleges are turning away from their mission to offer access to an affordable college education for all students.

A ProPublica analysis of new data from the U.S. Department of Education shows that, from 1996 through 2012, public colleges and universities gave a declining portion of grants—as measured by both the number of grants and the dollar amounts—to students in the lowest quartile of family income. That trend continued even though the recession hit those in lower income brackets the hardest.

Universities feel the dual pressures of raising their revenues and ratings.

Why have public universities across the nation shifted their aid?

“For some schools, they’re trying to climb to the top of the rankings. For other schools, it’s more about revenue generation,” said Donald R. Hossler, a professor of educational leadership and policy studies at Indiana University at Bloomington.

To achieve those goals, colleges use their aid to draw wealthier students—especially those from out of state, who will pay more in tuition—or higher-achieving students, whose scores will give the colleges a boost in the rankings.

Private colleges have been using such tactics aggressively for some time. But in recent years, many public colleges have sought to catch up, doing what the industry calls “financial-aid leveraging.”

The math can work like this: Instead of offering, say, $12,000 to an especially needy student, a college might choose to leverage its aid by giving $3,000 discounts to four students with less need, each of whom scored high on the SAT and who together will bring in more tuition dollars than the needier student will.

Those discounts are often offered to prospective students as “merit aid.”

The student profiled in the Chronicle of Higher Ed article offered a clue to the reason many low-income students are losing out.  They are academically unprepared for college-level work.

Ms. Epps had a combined SAT score of 820 on mathematics and critical reading…

That score is below the College Board SAT College and Career Readiness Benchmark, indicating a lack of “skills and knowledge that research demonstrates are critical to college and career readiness”.  The same low SAT scores that disqualify some students for merit aid also signal they are at high risk for dropping out of college.

Problem should be addressed before the college years.

The answer is not to give more need-based aid to students who are not prepared for college, but to do a better job of educating students to be college and career ready.  That is the job of K-12 education and community colleges.

Related:  Increasing college merit aid decreases enrollment of minority and low-income students (Cost of College)

February 18, 2014

Free tuition at New York state universities for top STEM students?

by Grace

The proposed New York State budget includes a provision to offer free tuition to top students who choose to major in STEM fields.

“New this year under the governor’s budget proposal, some students at the top of their classes will have a chance to skip tuition payments entirely. Those who plan to major in a field related to the STEM (Science, Technology, Engineering and Math) subjects would receive free tuition to any SUNY or CUNY institution, as long as they remain in the state for five years after graduation to pursue their careers. The $8 million budget line is intended to help reverse the “brain drain” of the best and brightest from New York State.”

Students must graduate in the top ten percent of their high school class to qualify for the scholarships.

Details must be worked out.

Final budget approval is expected this spring.  Questions have been raised about how the requirement to stay in the state for five years after graduation would affect students who wish to attend graduate school.  One estimate predicts funding is only sufficient for 166 four-year scholarships, so it is possible that demand will be greater than supply.

Related:

January 22, 2014

The risk of promising your child that “we’ll find a way to pay” for college

by Grace

Don’t make promises you cannot keep.

In the college search and selection process, parents should think very carefully before assuring their child that “we’ll find a way to pay for it.”  That promise could be the cause of deep disappointment or crushing student debt.

In answering the question, “Should Students Apply to Reach Schools?“, Do It Yourself College Rankings discusses the pitfalls of applying to colleges that are financial reaches.

The simple answer is not to apply to any college that you can’t afford to attend.

The more detailed answer would be that it’s fine to apply to a financial reach school if everyone clearly understands that only significant financial aid would make matriculation possible should the student be accepted.  But to avoid unnecessary disappointment and stress in making the final decision where to attend, one recommendation is to get a sense about the likelihood of receiving financial aid by running the Net Price Calculator tool very early in the process.  Also consider the realistic chances of merit aid, which is often not included in the NPC estimate.

For more insight on what makes sense for your family when deciding whether to apply to a financial reach, check out the complete DIY Rankings answer.

Related:

October 21, 2013

Even with a full scholarship there’s no free lunch

by Grace

Even college students awarded a full scholarship sometimes get socked with thousands of dollars in bills.

In reality, a full college scholarship does not usually cover the full cost of attendance.  Most schools require a student to contribute at least a few thousand dollars, either from employment income or from a loan.

Colleges usually require a “minimum student contribution” when calculating financial aid.  They want students to have some skin in the game.

… This payment is often referred to as a “minimum student contribution,” which is a flat payment typically between $1,500 and $4,000 a year. The dollar amount is usually the cheapest for freshmen and the most expensive for seniors. Some schools refer to it as a “summer earnings expectation,” saying that they expect their students to work during the summer and to contribute a certain dollar amount from that income to their education costs….

… schools are encouraged to charge students. For years, the College Board has suggested a minimum student contribution, and specified a recommended dollar amount — currently $1,800 for first-year students and $2,450 for dependent upperclassmen—for many colleges to charge….

Outside scholarships are not usually allowed to replace the student contribution.

When a student gets private scholarships—from a corporation or community group, say—some schools will actually scale back their own aid offering. In other cases, even when aid is enough to cover every penny of financial need, some schools require students to still pay a portion of the college bill out of their own pockets….

Harsh impact on low-income students who are awarded full-need financial aid

The policy is a major hardship for students who can barely earn this amount or who don’t have family to help them cover this cost. When students cannot pay, many colleges suggest they sign up for student loans.

Critics say the policy also underscores how the system is stacked against poorer students: Most colleges will accept a check from any other external source, like a student’s wealthy uncle, for this required payment, but they will not allow a private scholarship to pay this bill, even though the end result for the schools is that they still get paid the same amount. For some students who receive scholarships through the UNCF’s Gates Millennium Scholars program, these contribution requirements equal 5% to 22% of their families’ annual income, says Larry Griffith, senior vice president at the UNCF.

Low-income students may scramble to pay the required student contribution.

Beatriz Barros, a freshman at Cornell, thought her family would only be required to pay $1,400 for her college bills, which was the EFC figure the federal government had determined. But shortly before the school year began, Barros says, Cornell sent her a bill, which showed that her family would be required to pay $5,500 for the year and she would have to pay a separate $2,600 for her summer earnings expectation. Meanwhile, Barros had been awarded a scholarship from the Gates Millennium Scholars program that was large enough to cover her summer earnings expectation, but she says the school’s financial aid office declined to accept it, saying it was a required payment that she would have to make on her own. To pay for her and her family’s extra costs, Barros signed up for federal student loans, abstained from flying home for Thanksgiving, and cut back on her meal plan. “I definitely didn’t expect the bill to be that large—you hear about getting the Gates scholarship and you say, ‘Cool, I don’t have to graduate in debt.’ And then you find out you won’t get to do that and it’s a bit heartbreaking,” she says.

These students sometimes have to forego non-paid internships in order to get a paying summer job.  This puts them at a disadvantage when it comes time to find a job after graduation.

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