The Next Financial Blow - No Scholarships

     Students and their parents are learning the market meltdown has once again hit them in the college funding pocket.  The endowments of many colleges have taken such severe hits that many are being forced to reduce and cut scholarships for the coming 2009-2010 school year.

     A survey from the nonprofit Commonfund Institute of Wilton, Conn., found that college endowments across the nation lost an average of 24% --  one fourth -- of their value by Dec. 31, 2008.  That means at LEAST a 25% cut in scholarships if not more. Here are just a few examples:

• An endowment drop of 22% at Rhode Island College put most of the school's endowed scholarship funds "underwater" - below the amount of money used to start the fund - so the college foundation has decided to STOP payment of endowed scholarships for next year

Because of a drop in its endowment, the University of Wisconsin-Superior plans to give away about $100,000 less in endowed scholarships for next fall.

The University of Washington has cut 70 jobs from its fundraising office to save money, the prospect for next year's scholarships is still uncertain, said Kay Lewis, director of student financial aid.

Western Washington University in Bellingham has increased scholarship fundraising to make up for a 30% drop in its endowment, which has resulted in a decrease from $900,000 in endowed scholarships this academic year to a projected $200,000 available next year, said Stephanie Bowers, vice president for university advancement and the Western foundation.

    What scares me is students and their families will now turn to the internet and the scam artists who offer 1 $10,000 scholarship to 1.8 gazillion applicants and turn their information over the mass marketing companies for 4 to 10 times the profit!  I STRONGLY recommend families ALWAYS read the Terms and Conditions and Privacy tabs before sharing information for scholarship sites. Stick to well-known companies and sites.