Need blind admissions policy…..merit aid…..academic scholarships. Can you hear the sound of the cash register in the background?

The University of Pennsylvania announced that it will pay for tuition, room and board for all students from families with incomes of up to $50,000. Those moves in turn followed pledges to eliminate loans and parental contributions at Harvard University (announced in 2004, with a $40,000 income limit) and the elimination of loans even earlier at Princeton University (in 2001).

Want a great education at no or little cost, be a GREAT student. Get admitted to schools like the ones above which are committed to satisfying 100% of financial need with GRANTS. Even for families with incomes great than $50,000, academic achievement will lead to more mert aid irrespective of financial need. Plus, you will have more options and schools from which to choose.

Should students and their families still save? ABSOLUTELY! Savings is a backup for not gaining admissions into these schools. Further, tax free withdrawls are available when a beneficiary earns a scholarship. Finally, The beneficiary can be changed to another family member or the savings can be applied to graduate school.

See Upping the Ante Š

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The tale of two athletes

I was a recruited scholar athlete coming out of high school. Fortunately, I played football, the sport which provides the largest number of scholarships (currently 85 athletic scholarships, or 3.9 scholarships per starter at DI schools). I received many full scholarship offers. I did not realize until later that the number of scholarships offers had more to do with the sport that I played than with athletic talent.

My daughter plays high school soccer and is recruited scholar athlete. She is likely a more accomplished athlete than her dad! Even if she is considered one of the best soccer players in the nation and is recruited by the very best women’s soccer programs, it is improbable that she will be offered a full athletic scholarship. Women Soccer Coaches have only 1.1 athletic scholarships per starter at most to distribute among freshman, sophomore, junior and senior recruits. Only partial athletic scholarships (e.g., one quarter scholarship) are generally available for ”˜non-revenue producing sports’ like soccer as coaches attempt to stretch their scholarship budgets as much as possible.

The NCAA establishes the maximum number of athletic scholarships available per sport (see below table). For sports with more than two scholarships per starter (e.g., basketball, football and hockey), full scholarships are generally available to student athletes for these ”˜revenue producing sports’. However, for sports with less than two scholarships per starter (e.g., baseball, field hockey, lacrosse and soccer), only partial scholarships (e.g., one quarter scholarship) are generally available for these ”˜non-revenue producing sports’. Please note that maximum amount is not what is actually available at every school. In most cases, very few schools will be able to offer the maximum amount of scholarships for all the sports that they support for cost and Title IX reasons. In addition, Division 3 and Ivy League Schools have elected not to offer athletic scholarships.

If your child has the ability and commitment to play on the intercollegiate level, one must be realistic about the full athletic scholarship potential even from Division 1 schools. This is a very important consideration in developing an Educational Savings Plan (ESP). Prudent parents will plan and save accordingly.

For instance, should a family prudently save for their child’s education in a state sponsored 529 plan and their child receives a full athletic scholarship, these funds may be withdrawn from the 529 plan without penalty. These funds could be applied to another child’s education, the parent’s retirement, etc. Therefore, it is all upside with no downside for families who implement an Educational Savings Plan (ESP).

Author: Bob Lally

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The Department of Education last week announced a new formula for calculating eligibility for college financial aid, a move that will eliminate the federal Pell Grant scholarships for an estimated 80,000 to 90,000 low-income students and force a modest scaling back of other types of state and federal assistance to broader categories of undergraduates.

All I have to say is this is a shame, but not a surprise. Not that I believe in the motivations of any politician, but the words of one senator seemed on point - “For those working to get ahead, this is a scene from ‘The Grinch who stole my education’.”

The numbers game is pointless because most of us don’t have a true grasp on global and political economics. Nevertheless, I find it curious that the expected government “savings” of $300 million in the 2005-2006 academic year passes through Congress with ease, while we spend billions on wars, above and beyond budget and reason. Truly, our priorities are out of place, but then again, can we honestly say that they ever were in line with what is best for the U.S. or the world?

Wouldn’t it at least make sense to phase in such cuts over a 4-year span, so that current students have a chance to adjust their financial plans? Can anyone who voted for this bill relate to or truly comprehend the impact of such immediate cuts?

Terry Hartle, senior vice president of the American Council of Education, said “I don’t think it means they won’t go to school. But they will borrow more money on credit cards, work longer hours or take fewer classes.” Well, all this does is increase the odds of ever achieving peace of mind or true contentment, while strengthening the shackles of government (work longer hours, more taxes to government) and banks (more credit cards, more fees) on our lives. How long can we stand for such mass control and hypocrisy?

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