Counting on full-ride scholarship isn’t realistic
reality — or debt.
Only 0.2 percent of students got $25,000 or more in scholarships per year, based on the 2015-16 National Postsecondary Student Aid Study, the most recent data available, according to Mark Kantrowitz, publisher and vice president of research for savingforcollege.com.
In analyzing the scholarship figures, Kantrowitz notes that $6.1 billion in scholarships were awarded to 1.58 million recipients. That’s 8.1 percent of students and an average of $3,852 per recipient. If you limit the data to students who are enrolled in bachelor’s degree programs, the figures are 12.7 percent (1 in 8 students) and $4,202 per recipient.
My eldest child was in the top 5 percent of her high school class and was an AP scholar, a status awarded by the College Board to students who receive scores of 3 or higher on three or more AP exams. We were through the roof with happiness when she got a $20,000 presidential scholarship from the University of Maryland. However, divided over four years, it was $2,500 a semester. We had to make up the difference of about $60,000 with our savings and investment returns built up over 18 years in a 529 plan.
“Parents have a tendency to overestimate eligibility for merit-based aid and underestimate eligibility for need-based aid,” Kantrowitz said. “I often hear from parents who think their child will get a free ride because they are their high school valedictorian or salutatorian. But there are more than 80,000 valedictorians and salutatorians each year, so that doesn’t really distinguish them from other students. Thousands of students get perfect SAT or ACT test scores. With rampant grade inflation, hundreds of thousands of students get a 4.0 GPA each year.”
Still dreaming that your child will slam-dunk an athletic scholarship?
Only 2.3 percent of students in bachelor’s degree programs received athletic scholarships; the average was $11,914, based on the 2015-16 figures.
So this is yet another reminder to fill out the Free Application for Federal Student Aid form. Whether your child will apply for early admission to college or is a returning student, complete the form sooner rather than later. With limited funds, schools often hand out scholarships on a first-come, first-served basis. Even if you’re a high-income family, fill out the FAFSA.