What Are Scholarships?
Most people would agree that attending college is considered necessary
today if you want to become more competitive in the job market and also
accelerate your earning potential. In the United States, people have
been attending colleges and universities since the 17
th
century (Harvard is the oldest university in America, founded in 1636).
Other Ivy League schools such as Princeton, Yale, and Cornell also have
very early founding dates. Once considered a privilege for wealthy
families only, college attendance has increased more than 50 percent
over the last 50 years.
What has been the driving force behind this surge? One reason is the
tremendous increase over the years in the number of institutions.
According to the Association of American Colleges and Universities,
there are now over 2,600 accredited four-year colleges and universities
in the U.S. Another reason is cost variance. While ivy league schools
can run well over $50,000 per year for tuition, room and board, students
can choose private institutions at a cost of around $30,000 or public
schools that offer four year degrees at a more affordable $12,000.
But there is a problem. Tuition is rising higher and faster than
inflation. Last year, inflation rose about 3.6% while tuition at
American public colleges increased over 8%. In addition, the number of
colleges whose tuition rose above $50,000 in 2011-2012 increased 23%.
How does that compare to the national average for wages in America? The
national average is $42,000. So, Americans are facing a rising dilemma
on how they can afford to attend college.
Scholarships vs. Loans and Grants
Financial aid is available in the form of student loans, grants and
scholarships. Harvard was the first university to offer a student loan
program in 1940. Government loans began to appear in the 1930's.
Although student loans offer low interest, they must be repaid. This is
becoming more difficult in the present economy. Grants are forms of free
money that does not have to be repaid. Most are need based and take
into consideration the cost of tuition along with how much the family
can contribute. They are available at the federal and state level and
are primarily designed to help disadvantaged students attend college.
Scholarships are gifts of money awarded to students who demonstrate
outstanding academic or athletic ability. They are based on merit.
Whether a student is applying for an academic, athletic or artistic
scholarships, they must be exceptional in order to be considered. A
student applying for an academic scholarship, for example, would need to
be in the top five or ten percent of his or her class. Maintaining a
high G.P.A (Grade Point Average) in high school is crucial along with
achieving high scores on pre-college testing such as ACT or SAT. But
grades may not be the only factor that determines whether or not a
scholarship will be awarded.
Since scholarships are based on merit, they are designed to attract a
higher caliber of student. Merit refers to overall excellence.
Therefore, it includes not only academic performance but also
accomplishments, leadership capabilities, and contributions to society.
Schools are looking for leaders, students whom they believe will not
only do well in college but also become outstanding performers in their
chosen field and contributing members of society.
Colleges offer scholarships because it draws the cream of the crop to
their institutions. It is a good investment in the future strength of
our society and also a positive reflection on the institution to have a
legacy of famous performers, statesmen or scientists whose careers
began at their school. Barack Obama earned his law degree from Harvard
and his undergraduate degree from Columbia University, Bill Clinton
studied government at University College, Oxford, on a Rhodes
scholarship, Brad Pitt attended University of Missouri, James Earl Jones
attended the University of Michigan, and famous novelist John Grisham
actually received an accounting degree from Mississippi State
University. Even Madonna was an excellent student who earned a dance
scholarship to the University of Michigan, and Tiger Woods received a
golf scholarship to Stanford University.
Scholarship Benefits
Most families depend upon some type of financial aid to send their
children to college. A typical financial aid package consists of loans,
grants, work study and scholarships. Scholarships are unique. They are
based on academic merit, so high school students can work towards this
goal by getting good grades in school and being involved in activities
related to their field of study. A student planning on a pre-med course,
for example, would want to maintain a high G.P.A. in the courses
required by medical schools like chemistry, biology, physics, math and
English.
There are many benefits to high school students to plan for
scholarships. It is an incentive to get good grades. Good grades means
they have a shot at getting into a better school. Graduating from a
better school looks good on their resume and increases their chance at
landing a better job. So, it definitely has long-lasting benefits. It is
also free money that does not have to be repaid. The more they can get
in scholarships, the less they have to depend upon a student loan.
Colleges offering scholarships benefit by drawing better students which
increases their ranking among other schools. The higher their ranking,
the more prestigious they are, so they can continue to enroll the best
students and command a higher tuition. It also increases their endowment
funds which are donations of money that enable colleges to offer more
scholarships, competitive programs and better facilities. Harvard, for
example, has the largest endowment fund of any college in the world.
Types of Scholarships
Scholarships are not just offered by colleges and universities.
Scholarships are also available from federal and state governments and
private corporations. Most federal and state scholarships are need
based. Corporate sponsored scholarships can be offered at the national
or local level. The broader they are, the more competition there will be
in applying for these scholarships. Its a good investment for
corporations. It helps ensure their industry remains vibrant and
competitive by attracting the best minds, and it is excellent for public
relations. The big benefit for students is the wide variety of
corporate scholarships available to help them pay for college. Fortune
500 companies in particular have plenty of money to offer scholarships.
The top ten Fortune 500 companies offering scholarships include
Wal-Mart, AT&T, Ford, General Motors, United Health, State Farm,
Microsoft, Dell, Lowe's and Best Buy.
Some corporate scholarships focus on a particular career field, such as
accounting, engineering, health and medicine, nursing, teaching or
social work. This is helpful to students in searching for scholarship
money and also increases their chances of getting a scholarship by
narrowing the field. In addition, there are scholarships for minorities
such as African American, Hispanic, Asian, Native American and women
which are funded by private organizations and corporations. There are
specific scholarships for disabled students, those in the military,
older students, and students with severe medical conditions. There are
even scholarships available for people who are left handed, twins, and
tall—5'10” for women and 6'2” for men.
Future of Scholarships
Scholarships represent an important factor for many in determining
whether or not they can attend college. This will continue to be the
situation as Americans struggle in the present economy. Most families do
not have the financial means to pay for college themselves and must
rely on assistance from other sources. Students and parents are
reluctant to be stuck with large student loans to pay off after college.
Defaults on student loans are rising sharply, from 7 percent in 2009 to
8.8 percent in 2010 according to the U.S. Department of Education. As
college attendance continues to increase, so will the need for
scholarships. Whether they are need based or academic, scholarships are
key sources of money needed to help thousands of students receive a
college education.
