Collegiate Partners: Frequently Asked Questions
What are Collegiate Partners?
Collegiate Partners are colleges, universities and other accredited post-secondary institutions that demonstrate their commitment to the development of private sector student aid by supporting the mission of Scholarship America and its volunteer-operated Dollars for Scholars community scholarship foundations. All Collegiate Partner institutions have made commitments that Scholarship America-related scholarships will be used first to fill any unmet need remaining after the institutions initial financial aid package has been calculated. Institutions further agree that the first $1,000 in Scholarship America-related scholarships will not be used to reduce institutional grant assistance.
What are Matching Partners?
Matching Partners are institutions already enrolled in the Collegiate Partners program that make further commitments to students by agreeing to match scholarship awards coming to their campuses from Dollars for Scholars community scholarship foundations and other Scholarship America-managed corporate scholarship programs. These matching funds represent resources dedicated exclusively for this purpose and do not replace previously awarded institutional grants.
How do colleges calculate financial need and treat financial aid?
The following is an overview of the way financial need is calculated, and how financial aid typically fits in; below it, you'll find a guide to just how our Collegiate Partners Program helps:
I. What is Need?
| School Cost: |
$20,000 |
| Expected Family Contribution: |
$10,000 |
| NEED: |
$10,000 |
It is important to remember that scholarship awards are always applied to "need" and do not change the Expected Family Contribution amount determined by the FAFSA federal form or the individual institution.
II. What Do Colleges Do With Need?
| CASE A: FULL FUNDING |
CASE B: PARTIAL FUNDING |
| College Grant: |
$4,000 |
College Grant: |
$2,500 |
| Student Loan: |
$4,000 |
Student Loan: |
$4,000 |
| Work Study: |
$2,000 |
Work Study: |
$2,000 |
| Total Package: |
$10,000 |
Total Package: |
$8,500 |
| NEED: |
$10,000 |
NEED: |
$10,000 |
| UNMET NEED: |
$0 |
UNMET NEED: |
$1,500 |
III. Figuring In Your Dollars for Scholars Award
A. By law, the college must include outside aid resources, such as Dollars for Scholars awards, in their calculation. Thus, in Case A, your award will provide the student with aid in excess of the $10,000 in demonstrated need. Therefore, your award will result in some adjustments of the original $10,000 package.
B. In Case B, your award of up to $1,500 may go toward the student's remaining need, meaning that no adjustment will be made in the $8,500 package offered by the college, depending on the school's policy regarding treatment of outside awards.
IV. College Award Adjustments
The issue with college aid "adjustments" is not whether they will be made, but from where in the financial aid package they will be made. Let's see what would happen to a $1,000 Dollars for Scholars award at three institutions that fit Case A above:
Scenario 1: Self-Help Adjustment
| Original Package |
|
Adjusted Package |
| Grant: |
$4,000 |
|
Grant: |
$4,000 |
| Loan: |
$4,000 |
becomes |
Loan: |
$3,000 |
| Work: |
$2,000 |
|
Work: |
$2,000 |
| |
|
|
DFS Award: |
$1,000 |
| Total: |
$10,000 |
|
Total: |
$10,000 |
Scenario 2: Grant Adjustment
| Original Package |
|
Adjusted Package |
| Grant: |
$4,000 |
becomes |
Grant: |
$3,000 |
| Loan: |
$4,000 |
|
Loan: |
$4,000 |
| Work: |
$2,000 |
|
Work: |
$2,000 |
| |
|
|
DFS Award: |
$1,000 |
| Total: |
$10,000 |
|
Total: |
$10,000 |
Scenario 3: Split Adjustment
| Original Package |
|
Adjusted Package |
| Grant: |
$4,000 |
becomes |
Grant: |
$3,750 |
| Loan: |
$4,000 |
becomes |
Loan: |
$3,250 |
| Work: |
$2,000 |
|
Work: |
$2,000 |
| |
|
|
DFS Award: |
$1,000 |
| Total: |
$10,000 |
|
Total: |
$10,000 |
V. Understanding the System
Scenario 1 will offer the best result for both the chapter and the award winner. The student will graduate with $ 1,000 less debt. RECOMMENDATION: Make the full award.
Scenario 2 benefits the college by reducing its commitment of institutional resources to the student. The chapter's award will, in effect, be funding the college's financial aid budget.
RECOMMENDATION: Do not make an award. Consider an "honor" award for books of less than $200.
Scenario 3 reflects the policy of many institutions that have outside aid thresholds. In the example, the first $500 in outside aid will result in a loan adjustment. Any outside aid amount in excess of $500 will result in a 50/50 reduction of college grants and loans.
RECOMMENDATION: Limit award to the outside aid threshold level set by the college to avoid college grant reductions.
How do Collegiate Partners treat scholarships our chapters provide to students?
I. Special Help from Our Collegiate Partners:
A. All of our Collegiate Partners have agreed that the Dollars for Scholars awards will be used to fill any unmet need remaining after the financial aid package has been calculated. When unmet need no longer exists, Dollars for Scholars awards up to $1,000 will be used to adjust the self-help portion of the package, not grant aid (see Scenario I above).
B. About one third of our Collegiate Partners have gone a step further. They will match Dollars for Scholars awards, over and above what they previously committed to the student. Each Matching Partner sets limits on the amount of matching funds that it will provide to an individual student. Consult your Collegiate Partner Directory for details. No college can provide matching funds to a student whose need has already been fully met. That's why, generally, you'll only see schools with policies like those in CASE B above enrolled as Matching Partners.
II. Announcing Grants to Collegiate Partners:
A. Make your check out jointly to the college and the student. Making the check out to just one party will make it impossible for the financial aid office to track the grant.
B. For Collegiate Partners that do not match grants, send a cover letter with the check indicating that your chapter is a Dollars for Scholars affiliate. You may adapt the sample letter in the Master Manager or request a copy of this letter from the regional office.
C. For Matching Partners, complete the Matching Award Request Form and send it to the college as soon as your awards committee has decided on a grant. IMPORTANT: If your chapter does not issue checks for its scholarships until late summer or the beginning of the second semester, you should send the Request Form to the college as soon as possible. Don't wait until you issue the check, or the matching funds set aside by the school may no longer be available!
III. For More Information...
A. To find out if a college meets 100% of need: Peterson's guides publishes an annual survey of financial aid policies of every accredited 4-year institution in the nation called Paying Less for College. For 2-year colleges, call the financial aid office directly or ask the student for a copy of his/her financial aid award letter.
B. To find out if a school is enrolled in the Collegiate Partners Program consult your Collegiate Partners Directory. If you need a new copy, call the regional office at 800-335-4360.
C. To find out if schools not enrolled as Collegiate Partners will reduce their scholarships when you make an award to one of their students, consult the College Report (available from the regional office) or call the school's financial aid office directly.
Because College Doesn't Happen By Chance®.
