Vol. 22 No. 7 March 2008

Colleges Revamp College Aid
AS CONGRESS hammers out the details of the reauthorization of the federal Higher Education Act, colleges look to themselves to increase financial aid to college students. Some are pulling funds from record endowments; others are attempting to reduce the debt load of students. Here is a roundup of recent college actions.

Bowdoin Eliminates Loans. Beginning the 2008-09 academic year, Bowdoin C. in Maine will eliminate loans for all new and current students who receive financial aid. It will replace the loans with grants.

About 13 percent of Bowdoin students currently receive Pell grants, making it one of the more economically diverse liberal arts colleges in the nation. About 40 percent of its 1,710 students receive financial aid, with the average aid package approaching $30,000. Tuition, room, board and fees at Bowdoin totaled $46,200 this year. Currently, students graduate with an average loan obligation of $21,000.

Bowdoin president Barry Mills said, "While eliminating loans for our students on financial aid will be expensive, Bowdoin will not abandon its commitment to educate the poorest in our society in order to fund this new initiative."

Bowdoin is the first "need-blind" college with an endowment of less than $1 billion to eliminate loans. (Its endowment is $828 million.)

Some of the schools with more than $1 billion endowments that have replaced loans with grants are, (with endowments in parenthesis): Harvard U. ($34.6 billion), Yale U. ($22.5 billion), Princeton U. ($15.8 billion), Williams C. ($2.0 billion), Pomona C. ($1.8 billion), Amherst C. ($1.7 billion) and Swarthmore C. ($1.4 billion). Davidson C. also has eliminated loans and Haverford C. will eliminate them for incoming students.

Carnegie Mellon U. Creates Tiered Tuition. To reduce the impact of tuition increases on current students, Carnegie Mellon will stagger tuition increases next fall. For new students, there is a 6 percent increase to $39,150. But for students who enrolled in 2003-05, tuition will be $35,780, for students entering in 2006, $37,000, and in 2007, $38,430.

Colby C. Also Eliminates Loans. A day after Bowdoin made its announcement, Colby C. in Maine also eliminated loans for its students. Colby's comprehensive fee this year is $46,100. Its average aid package is $30,585. Typically, that package includes loans from $3,450 to $3,750. Students are currently graduating with up to $14,400 in debt.

"We don't want any student not to come to Colby because of concerns about paying off student loans," said Colby president William D. Adams.

Cornell U. Drops Loans. "Building on a long history of need-blind admissions and need-based aid," Cornell U. in New York joined the list of Ivy League colleges giving new financial aid breaks to its students. To help students graduate "debt free," Cornell has replaced loans with grants for students from families earning less than $75,000 a year. It will also cap annual loans at $3,000 for students with incomes between $75,000 and $120,000.

Cornell president David J. Skorton said the move will "strengthen the institution's founding mission to provide a superb liberal arts education across the full range of disciplines to the best and brightest students from all walks of life, regardless of their resources."

Meanwhile, Cornell's Board of Trustees also approved a tuition increase of 4.9 percent for undergraduates of the university's endowed colleges.

Dartmouth's New Aid Initiative. In late January, Dartmouth C. announced its new financial aid initiative. It will offer free tuition for students who come from families with annual incomes below $75,000; replace loans with scholarships; offer need-blind admissions to international students, who typically represent about 7 percent of each incoming class; and offer a junior year leave term for internships with no earnings expectation.

Dartmouth president James Wright said the new initiative builds "on our more than three-fold increase in financial aid since 1998 we seek to keep Dartmouth affordable and to enroll the most talented students from around the world."

Currently, 13 percent of Dartmouth students are the first in their families to attend college and 14 percent are recipients of Pell Grants. Nearly 48 percent of the school's 4,300 undergraduate students receive need-based aid, with scholarships averaging $30,400.

George Washington U. Announces Affordability Plan. GWU, created by an Act of Congress in 1821, has launched a comprehensive plan that will provide $118 million in financial assistance for undergraduates in 2008, a $6 million increase for incoming freshmen. Tuition will increase 3 percent to reflect the current rate of inflation, to $40,392, but be locked in for up to five years under its fixed-tuition program. Siblings receive a 50 percent discount. And the cost of housing will be reduced on 1,000 beds by 19 percent for students demonstrating financial need. The plan also reduces the debt burden at graduation from $29,000 to $20,000.

Northwestern U. Offers New Grants. Northwestern U. also joined the rush to relieve students from low- and middle-income families. It is replacing loans with grants for students with high need levels. Most of those students will be from families with incomes under $55,000. But Northwestern will calculate eligibility based on need, not just an income level.

Stanford U. Ups Financial Aid. Students with parents earning less that $100,000 will no longer pay tuition at Stanford U. Parents earning less than $60,000 will also not be expected to pay room and board. The new program eliminates student loans "for lower- and middle-income families."

Washington U. Eliminates Loans. Beginning fall 2008, entering freshmen and returning full-time undergraduate students with parental incomes of less than $60,000 will not need to take out loans to attend Washington U. in St. Louis. Students will receive grants. The children of parents with incomes higher than $60,000 may also receive "student loan relief" based on need.

Wellesley C. Adopts New Plan. In February, Wellesley announced its new financial aid plan that "boosts grants and reduces or eliminates loans." Students from families with calculated incomes of $60,000 and below will only receive grants. Those with incomes between $60,000 and $100,000 will have loans capped at $8,600 for four years. And students from families making more than $100,000 will have their loans capped at $12,825 for four years. The policy will apply to all future and current students beginning the next academic year. International students who receive financial aid will have all their loans reduced or eliminated.

Wellesley provides aid to more than 55 percent of its students, with an average aid package of $30,845. "This plan will bolster aid to students and families who need it the most, those who are least able to repay loans," said Wellesley's president H. Kim Bottomly.

Yale Expanding Aid. Yale U. will increase its endowment payout by more than one-third next academic year to benefit students and researchers. Due to "exceptionally strong investment returns," Yale will target "additional financial aid for students, support for efforts to recruit students of modest means for college and possibly expand the size of Yale's undergraduate student body," said president Richard C. Levin.

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NEWS FLASH NEWS FLASH
Student Loan Crunch
FOLLOWING on the heels of the loan crisis in the housing mortgage industry, the student loan industry is facing its own crisis.

Nationally, Sallie Mae, the nation's largest private lender of student loans, announced it was going to begin restricting the loans it makes. The College Loan Corp, the eighth largest federal loan originator, announced it would no longer make such loans as of March 1. And Nelnet Inc. said it would "be more selective" in the loans it makes.

Meanwhile, states from Iowa to Connecticut have likewise announced recent pullbacks from providing student loans because of the credit crunch.

The North Carolina State Education Assistance Authority, which administers $3.3 billion in student loans, was forced to look for new financing to refinance its debt after traditional means of credit dried up. The agency said that current loan agreements are not affected, but the agency needs to raise about $600 million to cover student loans for the 2008-09 school year. And the Michigan Higher Education Student Loan Authority announced in February that it would suspend one of its lending programs.

Members of the U.S. House of Repre_sentatives have urged Secretary of the Treasury Henry M. Paulson, Jr. and Secretary of Education Margaret Spellings to take action to ensure that students can obtain needed loans to access higher education opportunities.

Financial aid experts are advising families to file their FAFSA forms as soon as possible.

Meanwhile, the direct loans save taxpayers. The decade long debate over the direct-loan program in which the government loans money directly to students through their college versus the bank-based Federal Family Education Loan (FFEL) program heated up recently with a new report from the U.S. Treasury Department. The report concluded that in the 2007 fiscal year, the direct-loan program returned $500 million to the U.S. Treasury. The bank-based program cost taxpayers about $4.9 billion. The long-term taxpayer cost of the direct-lending program was $8.8 billion versus $50.8 billion for the bank-based guaranteed-loan program.

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THE COUNSELOR'S CORNER
Inside Admissions Offices
"Who Gets Financial Aid?" "Who Has Merit Scholarships?" Here's what some colleges reported in CB's Annual Survey.

WHAT PERCENT OF STUDENTS RECEIVE FINANCIAL AID (AND WHAT IS THE AVERAGE AID PACKAGE?)
Brandeis U. (48 percent/$23,816), Case Western Reserve U. (93 percent/$26,989), Claremont McKenna C. (60 percent/$28,500), Colgate U. (39 percent/$33,573), Cornell C. (97 percent/$19,825), C. of Mount St. Joseph (80 percent/$14,486), Creighton U. (83 percent /$8,000), DePauw U. (53 percent/$24.065), Duke U. (45 percent/$29,850 median), Elizabethtown C. (90 percent), Grinnell (90 percent/$20,000), Hampden-Sydney C. (97 percent/$20,700), Harvey Mudd C. (81 percent/$27,609), Lawrence U. (85 percent /$23,000), Muhlenberg C. (74 percent/$17,574), Oberlin C. (60 percent/$24,255), Ohio U. (77 percent/$8,438), Pomona C. (52 percent/$33,500), Reed C. (55 percent/$30,000), Scripps C. (55 percent/$29,642), St. Lawrence U. (83 percent/$27,225), U. of California, Davis (64 percent/$11,697) and Valparaiso U. (90 percent/$18,000).

WHO IS NEED-BLIND IN ADMISSIONS?
Aquinas C., Augustana C., Babson C., Baldwin-Wallace C., Barry U., Binghamton U. SUNY, Bucknell U., Carleton C., Carlow U., Carnegie Mellon U., Claremont McKenna C., Clearwater Christian C., Clemson U., College of Mount St. Joseph, Cornell C., Creighton U., Dartmouth C., DePauw U., Duquesne U., Elon U., Embry-Riddle Aeronautical U.-Daytona Beach, Embry-Riddle Aeronautical U.-Prescott AZ, Evergreen State U., Flagler C., Florida Institute of Technology and Florida State U.

Also: Franciscan U., Georgia Southern U., Hampden-Sydney C., Harris-Stowe U., Harvey Mudd C. (for U.S. citizens and permanent residents), Hood C., Husson C., Ithaca C., James Madison U., Kalamazoo C., Keene State C., Lafayette C. (this past year we were need blind with the exception of the final 1 percent of our admission decisions), Lawrence U., Lehigh U., Linfield C., Longwood U., Louisiana State U., Marygrove C., Marymount Manhattan C., Marywood U., Monmouth C., Moravian C., Mount Mercy C., Nazareth C., Ohio U. and Oregon State U.

And more: Philadelphia Biblical U., Pomona C., Providence C., Purdue U., Quincy U., St. Bonaventure U., Sacred Heart U., Saint Michael's C., Santa Clara U., Sweet Briar C., U. of Arizona, U. of the Arts, U. of Colorado at Boulder, U. of Dayton, U. of Idaho, U. of Iowa, U. of North Carolina-Chapel Hill, U. of North Dakota, U. of North Florida, U. of Notre Dame, U. of Oklahoma, U. of Rochester, Valparaiso U., Vassar C., Virginia Tech U., Wabash C. (we meet 100 percent of demonstrated need, too), Wartburg C., Webber C., Whitman C. and Wilson C.

SCHOOLS WITH NEW MERIT SCHOLARSHIPS
Babson C. Weismann Scholarship.

Claremont McKenna C. Seaver Leadership Scholarship; Interdisciplinary Science Scholarship.

Elon U. Fellow Scholarships ($2,000-$8,000); Susan Scholarship for Women ($12,000).

Lehigh U. Several endowed scholarships added.

Louisiana State U. LSU National Scholars.

Mount Mercy C. alumni, legacy and athletic scholarships.

Nazareth C. Rochester City School District Scholarship with ten awards of $10,000 annually to regularly admitted students from the Rochester, New York, city school district.

Northeastern U. Torch Scholars. First year students may compete for a number of merit based scholarship opportunities, including the Carl S. Ell, Ralph J. Bunche, Boston Public High School and Torch scholarships which award full tuition, room and board to a limited number of the most talented incoming freshmen. Northeastern also offers a number of scholarships, such as the Reggie Lewis Scholarship which offers full tuition, and partial scholarships.

Wabash C. Awards for students ranking in the top 10 percent and top 20 percent of their high school graduating classes, if they participate in a Visit Day program, apply and are admitted.

Wartburg C. Communication Arts Scholarship.

AWARDS TO INTERNATIONAL STUDENTS?
(WITH ANY RESTRICTIONS)
Adelphi U. (only merit scholarship), American U. (based on academics and leadership potential), College of Mount St. Joseph (scholarships only), Creighton U. (academic ability and demonstrated need), Elon U. (merit scholarship only), Hampden-Sydney C. (merit-based), Harris-Stowe U. (scholarships), Harvey Mudd C. (limited resources), Hood C. (merit aid only), James Madison U. (international students can receive scholarships, but if they do not possess a green card, they cannot receive state or federal aid), Johns Hopkins U. (no federal money), Lafayette C. (there is limited funding, so competition for aid among international students is keen), Marymount Manhattan C. (few merit scholarships), Ohio Wesleyan U. (mostly merit-based), Pomona C. (limited number of scholarships), Providence C. (merit-based scholarships only for international students; not need-based), Reed C. (25 freshman packages offered per year), St. Bonaventure U. (merit-based only), St. Lawrence U. (very competitive), Sweet Briar C. (only merit aid), U. of Arizona (merit-based scholarships only), U. of the Arts (merit only), U. of Dayton (merit only), U. of Rochester (Canadian and Mexican only for need, all for merit), Valparaiso U. (merit only), Vassar C. (no need-based), Virginia Tech U. (limited aid is available), Wartburg C. (to receive maximum amount, they must live on campus).

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SCHOLARSHIP SCOOPS
Alzheimer's Teen Scholarship. The Alzheimer's Foundation of America (AFA) has begun awarding one $5,000 college scholarship for teen's who have had to cope with the disease in their families. The winner comes from high school juniors or seniors who complete a 1,200 word essay. Visit www.afateens.org for more information.

Brown U.'s New African Scholarship. Brown U. has launched a new "Advancing Africa Scholarship Fund." With a gift of $5,750,000 from businessman Idan Ofer, chairman of the Israel Corporation, Brown will immediately begin offering scholarships to students from the Sub-Saharan African nations. They will be known as "Advancing Africa Scholars," and will be expected to return home for at least two years after their study to apply their new knowledge and skills. They will also receive financial assistance upon their return to Africa.

Brown's president Ruth J. Simmons said, "As educators, we have the responsibility to reach out to developing nations to provide the necessary tools to a wider-cross section of students." Simmons has made internationalism a strategic priority at Brown to ensure that students are prepared to participate in the new global community.

Kids Who Care. Since 2001, more than 7,000 students, ages six through 18, who are youth volunteers have received over $1.5 million in prizes from the Kohl's Kid's Who Care ® Scholarship Program sponsored by Kohl's the department store chain. The awards are in recognition "of their selfless acts." To nominate a worthy young person, visit www.kolhskidswhocare.com. But hurry. Deadline this year is March 15.

New NASA Aeronautics Scholarships. Last month, NASA announced it is awarding up to $15,000 per year for two years to undergraduates to "attract highly-motivated students to aeronautics and related fields." Students must be admitted into a "suitable aeronautical program or related field of study at an accredited U.S. university by fall of 2008 and be a U.S. citizen." For details see www.asee.org/nasaasp.

Ronald McDonald House. Graduating seniors from Southern California may be eligible to receive $2,000 scholarships from the Ronald McDonald House Charities of Southern California. The March 14 deadline is also fast approaching. Go to: www.mcdonaldssocial.com.

New Scholarship for African American Students. The Sallie Mae Fund and BET Networks announced they are collaborating on two new initiatives to generate awareness of scholarships and other college-funding resources. In December, BET launched a program to promote scholarship awareness and awarded $25,000 in a competition. In addition, The Sallie Mae Fund and BET have sponsored a free comprehensive listing of more than 300 scholarships designed for African American students. The publication, "Black College Dollars," is produced by the Pell Institute for the Study of Opportunity in Higher Education. Information on both the print edition and searchable online format can be found at www.blackcollegedollars.org.

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International Affairs
Secure Borders/Opens Doors. According to a recent Kipplinger Letter, the declining value of the dollar should make the U.S. a prime destination for international students. Yet travel to the U. S. declined by 17 percent from 2000 through 2006. Meanwhile, travel to India from Britain, for example, grew by 102 percent.

And while the number of international students who study in the U.S. has finally climbed back to the pre-September 11 levels, the U.S. has lost many potential students to other nations.

To address these and other problems, the U.S. Department of State and the Department of Homeland Security created The Secure Borders and Open Doors Advisory Committee to make recommendations so that the U.S. again becomes "an international beacon of freedom and economic opportunity" to "international business people, students, researchers and tourists."

That group recently issued its report with 44 recommendations of relevance to students and scholars. In particular, "The Department of State should expand its use of management practices related to visa processing" and improve "efficiency, effectiveness and consumer friendliness of visa application and adjudication."

Singapore Sings "Come Work & Study." Singapore's Ministry of Manpower is inviting students to come and live in the Pacific island nation as part of its new Work Holiday Program. Holiday internship opportunities are being offered in the hospitality and services sector, banking and finance, communications and media, electronics, pre-engineering, chemicals and info-communications technology.

Students from accredited U.S. colleges and universities, plus those who have gained admission but have yet to enroll, are eligible. Successful applicants will be issued a six-month work pass. Find a list of WHP employer partners at www.contactsingapore.org.sg/whpsingapore.

Study Abroad Grants. CEA, a top study abroad organization founded in 1996 with university partnerships in 14 nations, has announced a new set of grants to "democratize" study abroad. Ten scholarships are being awarded on the basis of academic achievement, potential for leadership and their investment in their communities. To find out more go to: www.gowithcea.com/financing/scholarships.html.

Top TOEFL Scores. In response to requests from readers, CB's annual survey asked colleges what the "average or middle 50 percent" TOEFL scores were for their incoming international freshman class last fall. Here are a few schools and the test results: Bucknell-621 paper, 267 computer, 106 internet; Claremont McKenna-270 paper, 90 electronic; Dickinson-623 paper, 256 computer, 105 internet; Purdue-Greater than 79 on the internet; St. Olaf-600 paper, 250 computer; U. of Colorado-582 paper.

P.S. Financial Resources for International Students. Christopher S. Penn, producer of the Financial Aid Podcast, recently made these suggestions for financial aid resources for international students: www.International
Student.com; www.InternationalScholarships.com; www.IEFA.org; and www.InternationalStudentLoan.com.

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More Results From CB's Survey
Admissions stats about the 2007 first-year class continued to arrive at CB's editorial offices last month. Here are a few highlights:

U. of California, Santa Cruz. UCSC received 24,461 applications, more than in 2006. It admitted 20,063, also more than the previous year. With close to a 19 percent yield, it fielded a first-year class of 3,718 students, 55 percent of whom were female. The average high school grade-point average of new students was 3.5. About 46 percent received financial aid, averaging $14,422.

U. of Central Florida. UCF received 23,000 applications, more than in 2006. It admitted 10,000, about the same as the previous year. With a 44 percent yield, it attracted a first-year class of 6,600 students, 53 percent of whom were female. The average high school grade-point average of new students was 3.72. About 67 percent of its students received financial aid. Its most popular majors are business, engineering and psychology.

U. of Illinois at Urbana-Champaign. UIUC received 21,645 applications, fewer than in 2006. It admitted 15,361, more than the previous year. With a 69 percent yield, it fielded a first-year class of 6,940 students, 48 percent of whom were female. The average scores of new students were combined SAT 1287; ACT, 28. About 42 percent received financial aid averaging $10,418.

U. of Maryland. UM received over 23,000 applications, more than in 2006. It admitted 10,488, also more than the previous year. With a 44 percent yield, UM fielded a first-year class of 4,200 students. The average high school grade-point average of new students was 3.96. About 70 percent received financial aid. Among the most popular majors are business, English and journalism.

LAST WORD: Colleges Seeking Students. What special talents or skills are colleges seeking among the 2008 applicants? Last month, CB reported on what some admissions officers said in CB's annual survey. Here is what a few more said:

Northeastern U. "The admissions committee comprehensively considers the applicant's personal background and academic preparation in the context of the opportunities available to him/her. We give special consideration to applicants who have chosen to challenge themselves in honors, Advanced Placement, International Baccalaureate and college-level courses. Our community values traits such as creativity, diversity, engagement, global perspective, leadership and resiliency, so they are reflected in our evaluation process."

Oberlin C. "Strong academic preparation and desire to learn."

Reed C. "Passion for learning."

St. Olaf C. "'Oles' are multi-talented musicians and athletes, scholars and entrepreneurs, and researchers and service leaders."

Sacred Heart U. "Participated in community service."

Saint Michael's C. "Commitment to service is big here."

U. of the Arts. "Creativity and a high level of personal motivation."

U. of Colorado at Boulder. "Good citizens with strong academics."

U. of North Carolina-Chapel Hill. "We seek a well-rounded class, not necessarily well-rounded applicants."

Wabash C. "Work ethic, intellectual curiosity, confidence and students who are willing to get involved and engaged."

Wartburg C. "Leadership, service, community engagement, interest in undergrad research, especially in the natural sciences, mathematics, computer science and social sciences."

Webber C. "Seeking more non-athletes."

Whitman C. "We offer talent money in art, debate, music and theater."

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COLLEGE BOUND's Publisher/Editor: R. Craig Sautter, DePaul University; Chief Operating Officer: Sally Reed; Assistant Editor: Emma Schwartz; Illustration: Louis Coronel; Board of Advisors: Lisa Burnham, Edina High School, Minnesota; Claire D. Friedlander, Bedford (N.Y.) Central School District; Howard Greene and Matthew Greene, authors, The Greenes' Guides to Educational Planning Series; Frank C. Leana, Ph.D., educational counselor; M. Fredric Volkmann, Washington University in St. Louis; Mary Ann Willis, Bayside Academy (Daphne, Ala.).

In This Issue

Feature Articles
Colleges Revamp College Aid

NEWS FLASH NEWS FLASH
Student Loan Crunch

THE COUNSELOR'S
CORNER
Inside Admissions Offices

SCHOLARSHIP SCOOPS
-Alzheimer's Teen Scholarship
-Brown U.'s New African Scholarship
-Kids Who Care
-New NASA Aeronautics Scholarships
-Ronald McDonald House
-New Scholarship for African American Students

International Affairs

More Results From CB's Survey

COMING UP:
News from the states, new curricula in schools and the latest admissions stats.

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