College policies rescinding or cutting funding because of outside scholarships “takes away a reward that the student earned through hard work and concentrated effort,” according to a report to be released this month or in April by the National Scholarship Providers Association.
NSPA Recommendations
“There is no net financial gain to a student despite winning a private scholarship, and therefore no additional improvement to his or her ability to pay for college,” the authors wrote in a draft version provided to Bloomberg.
The Boulder, Colorado-based group, whose 320 members include Gates, the Coca-Cola Scholars Foundation, Michael & Susan Dell Foundation and Walmart Foundation, is recommending schools waive minimum contributions and summer work expectations for low-income students.
At Barnard, students must fill a summer savings requirement ahead of each school year, averaging about $2,200 annually, according to Nanette DiLauro, director of financial aid. Students can either earn the money through a job or take out a loan to cover the cost. As at Boston College, Barnard says it wants to be consistent in its aid policy and can’t waive the requirement for some students, she said.
Aid ‘Displacement’
“It’s not fair to do it for a Gates recipient,” DiLauro said. “We do our best to really work with our students, especially our low-income students.”
In some cases, students with outside scholarships find their colleges reducing the grant they had been awarded. The colleges say the practice, called displacement, lets them give financial aid to other needy students.
Amherst, Cornell University and Dartmouth College displace institutional aid, according to the schools.
At Amherst -- where the school’s average aid package was about $44,000 in 2011-2012 -- outside scholarships are applied to a student’s $1,800 work expectation during the school year, and can be used to buy a computer. Leftover funds then replace the school’s direct aid, said Parker, the admissions dean.