Financial Aid From Schools: Colleges Offer Diverse Financial Help to Students

Colleges and universities are a great source of financial help for students. Rather than being driven by government policy, they are motivated to attract a diverse body of students to their institutions. To that end, they typically offer some combination of grants, scholarships, work-study and loans to the students who need financial help. For the highest academic achievers, there is frequently the opportunity to receive a full tuition scholarship. Graduate school programs may offer fellowships in addition to the other types of aid. Grants and scholarships, which do not need to be repaid, are the most common type of aid offered. A recent trend is for schools to offer “no-loan” or “loan-cap” financial aid packages which eliminate or minimize the amount of money students need to borrow.

What types of grants and scholarships are offered?

Schools may offer needs-based grants and scholarships, merit-based scholarships, athletic scholarships and scholarships based on various and diverse criteria such as degree program, ethnicity, heritage, residence or specific talents, among others. Many of these specific scholarships have a merit requirement as well. Grants and scholarships are funded from various endowments that are financed by alumni, corporations, and foundations. Most schools have some significant general needs-based and merit-based grants and scholarships while many schools also offer scholarships with very specific requirements.

Although the number and specificity of scholarships at some schools can be overwhelming, it can prove worthwhile to read through all the scholarships available to look for a match in eligibility criteria. The examples below illustrate how diverse and narrowly targeted some scholarships can be:

• Students who have a parent who is a Methodist minister.
• Students who score highest on an examination of ancient Greek civilization.
• Residents of the town of LaGrange, Maine.
• Native American or Alaska Native students who intend to pursue a career in health care or tribal public policy.
• Descendents of Foster Blake, Sr.

What about Athletic Scholarships?

About $1 billion in athletic scholarships are given every year in the U.S. with most of the money going to major sports such as football and basketball. Some schools also give scholarships for less popular sports like fencing, golf, field hockey and just about any sport there is. However, scholarships for these less popular sports tend to be for smaller amounts. Academic achievement is becoming a more important factor in the awarding of athletic scholarships.

How does a student apply for school-based scholarships and other aid?

Most school-based aid will require a minimum of the Free Application for Federal Student Aid (FAFSA) and many also require the College Board’s CSS/PROFILE® application be submitted. Some programs require no additional steps; students are automatically considered for programs based on these applications. Other programs may require a separate application and possibly an essay, recommendations or other additional information. Applicants need to be careful of deadlines as they may be different for the various programs, even at the same school. The school’s website or financial aid office will provide specific information for each program. Those interested in athletic scholarships should contact the athletic department directly.

Do these aid programs continue after the first year?

School scholarships and grants are typically renewed each year as long as the student meets the renewal criteria. A minimum GPA will be set for each grant and scholarship that must be maintained to continue receiving the award. There are sometimes other requirements such as maintaining an on-campus residence. Often there is no action necessary on the part of students, but they should check with their financial aid office to verify this.

What are no-loan and loan-cap programs?

As school costs have escalated, the amount of money students are borrowing has been growing so large that many cannot afford their loan payments once they graduate. To alleviate this problem, some schools have instituted no-loan or loan-cap financial aid packages to eliminate or minimize the amount of money students needs to borrow. These schools will offer grants, scholarships and work-study to replace federal loans in the financial aid package. Some programs have income maximum eligibility requirements while others do not. Schools with large endowments are much more likely to offer these types of financial aid packages.