Free Money
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IF YOU'RE A PARENT, we don't need to tell you that college is expensive. For the 2004-2005 school year, total expenses per student for public schools were $14,640, while private schools ran $30,295, according to The College Board. Multiply that times four and then factor in tuition inflation...and it quickly becomes clear why so many parents rely on financial aid and student loans to help supplement their college savings. But one source of funding that's often overlooked is the thousands of private scholarships offered each year. Hundreds of millions of dollars are available and your child doesn't have to be a star quarterback or straight-A student to qualify. Many parents fail to realize there are scholarships out there for just about everyone from model-airplane enthusiasts to future engineers. With a little bit of determination and a decent application, private scholarships (which excludes money offered by colleges and universities) are relatively easy to win. In fact, many of the scholarship committees are simply looking for a well-balanced student. "They really don't like to see a person who sits in his bedroom studying all the time, focusing on himself," says Michael Darne, managing director of e-commerce for Wired Scholar, a college-planning site owned by Sallie Mae. Instead, many seek out those who are giving back to their local community. So if your child isn't already doing so, it may be worthwhile to sign him up for a bit of community service, such as volunteering to organize local Special Olympic events. Not only will this provide fodder for his essay and yes, most of these scholarships do require some type of personal statement but the organization itself may even offer scholarships to those who lend a helping hand. (And, hey, doing good never hurt anybody.) The caveat here is that most awards are relatively paltry compared with the staggering price of tuition. The average award ranges from $500 to $2,500, says William Nelsen, president of Scholarship America, the largest private scholarship organization in the country. At a private university this may do little more than cover the book bill. Of course, when you're talking about free money, every little bit counts. Parents should also be aware that winning scholarship money could decrease a child's total financial-aid package, warns Rick Darvis, a Plentywood, Mont.-based certified college planning specialist and certified financial planner. Many schools will decrease your aid dollar for dollar based on any money you're awarded, including grant money. "Ironically, it's the kids who don't need the money who can often benefit the most," says Darvis. Thanks to pressure from organizations like Scholarship America, some schools are starting to ease up on this practice (officially called "displacement"). In some cases colleges and universities have agreed that certain awards won't affect financial-aid packages. In other cases, schools have agreed to reduce loan amounts rather than grants by the amount of the scholarship. Searching for Scholarships
In the olden days (i.e., the pre-Internet era), the scholarship hunt was tedious at best. Students visited their high-school guidance counselors and thumbed through telephone-directory-sized books looking for scholarships that might be appropriate. These days, a handful of helpful free sites such as Wired Scholar, FastWeb and The College Board provide scholarship databases, making research much easier. These databases aren't perfect: When we tested them we inevitably were given information about some scholarships that weren't appropriate based on the data we provided. Nevertheless, these search engines are well worth the effort since they are likely to uncover scholarships that parents never dreamed existed. For example, did you know that the Ayn Rand Institute gives out up to $10,000 for the student who writes the best essay on "The Fountainhead"? Coca-Cola also provides money to students who are the first generation in their family to go to college. But parents shouldn't limit themselves just to the scholarships that pop up on a Web search. Your child may have the better chances of winning money from local organizations such as churches, civic groups and small businesses, since fewer students are likely to apply. Also look for local chapters of larger organizations. Scholarship America gave out almost $160 million in 2004 mostly through its local chapters, which only give money to students who live in their area. (Click here for a list of its chapters.) Your employer, unions and clubs such as the Elks are also great resources for scholarships. The Competitive Edge
The deadlines for most scholarships range from November through April of a student's senior year of high school. But even if your child is a bit younger, it's not too early to start thinking about scholarships, says Wired Scholar's Darne. A younger student can get a jump on the competition by researching which scholarships he or she may be eligible for a few years down the line. Another little-known secret is that plenty of scholarships are given out to high-school freshmen, sophomores and juniors. The money is simply held in a trust until the student has been accepted to college. Also, don't limit your child to applying for just one scholarship. At $500 a pop, he or she will need to win a few of them to help lessen the tuition burden. Be Warned
As always, parents need to watch out for scams. There are plenty of companies out there offering to find parents guaranteed scholarship money for the low price of, say, $39.99. What you get in return is a list of scholarships you could have found on your own for free. And with those hefty bills looming on the horizon, we bet you've got better things to do with your money than handing it over to some sleazy service.
IF YOU'RE A PARENT, we don't need to tell you that college is expensive. For the 2004-2005 school year, total expenses per student for public schools were $14,640, while private schools ran $30,295, according to The College Board. Multiply that times four and then factor in tuition inflation...and it quickly becomes clear why so many parents rely on financial aid and student loans to help supplement their college savings. But one source of funding that's often overlooked is the thousands of private scholarships offered each year. Hundreds of millions of dollars are available and your child doesn't have to be a star quarterback or straight-A student to qualify. Many parents fail to realize there are scholarships out there for just about everyone from model-airplane enthusiasts to future engineers. With a little bit of determination and a decent application, private scholarships (which excludes money offered by colleges and universities) are relatively easy to win. In fact, many of the scholarship committees are simply looking for a well-balanced student. "They really don't like to see a person who sits in his bedroom studying all the time, focusing on himself," says Michael Darne, managing director of e-commerce for Wired Scholar, a college-planning site owned by Sallie Mae. Instead, many seek out those who are giving back to their local community. So if your child isn't already doing so, it may be worthwhile to sign him up for a bit of community service, such as volunteering to organize local Special Olympic events. Not only will this provide fodder for his essay and yes, most of these scholarships do require some type of personal statement but the organization itself may even offer scholarships to those who lend a helping hand. (And, hey, doing good never hurt anybody.) The caveat here is that most awards are relatively paltry compared with the staggering price of tuition. The average award ranges from $500 to $2,500, says William Nelsen, president of Scholarship America, the largest private scholarship organization in the country. At a private university this may do little more than cover the book bill. Of course, when you're talking about free money, every little bit counts. Parents should also be aware that winning scholarship money could decrease a child's total financial-aid package, warns Rick Darvis, a Plentywood, Mont.-based certified college planning specialist and certified financial planner. Many schools will decrease your aid dollar for dollar based on any money you're awarded, including grant money. "Ironically, it's the kids who don't need the money who can often benefit the most," says Darvis. Thanks to pressure from organizations like Scholarship America, some schools are starting to ease up on this practice (officially called "displacement"). In some cases colleges and universities have agreed that certain awards won't affect financial-aid packages. In other cases, schools have agreed to reduce loan amounts rather than grants by the amount of the scholarship. Searching for ScholarshipsIn the olden days (i.e., the pre-Internet era), the scholarship hunt was tedious at best. Students visited their high-school guidance counselors and thumbed through telephone-directory-sized books looking for scholarships that might be appropriate. These days, a handful of helpful free sites such as Wired Scholar, FastWeb and The College Board provide scholarship databases, making research much easier. These databases aren't perfect: When we tested them we inevitably were given information about some scholarships that weren't appropriate based on the data we provided. Nevertheless, these search engines are well worth the effort since they are likely to uncover scholarships that parents never dreamed existed. For example, did you know that the Ayn Rand Institute gives out up to $10,000 for the student who writes the best essay on "The Fountainhead"? Coca-Cola also provides money to students who are the first generation in their family to go to college. But parents shouldn't limit themselves just to the scholarships that pop up on a Web search. Your child may have the better chances of winning money from local organizations such as churches, civic groups and small businesses, since fewer students are likely to apply. Also look for local chapters of larger organizations. Scholarship America gave out almost $160 million in 2004 mostly through its local chapters, which only give money to students who live in their area. (Click here for a list of its chapters.) Your employer, unions and clubs such as the Elks are also great resources for scholarships. The Competitive Edge
The deadlines for most scholarships range from November through April of a student's senior year of high school. But even if your child is a bit younger, it's not too early to start thinking about scholarships, says Wired Scholar's Darne. A younger student can get a jump on the competition by researching which scholarships he or she may be eligible for a few years down the line. Another little-known secret is that plenty of scholarships are given out to high-school freshmen, sophomores and juniors. The money is simply held in a trust until the student has been accepted to college. Also, don't limit your child to applying for just one scholarship. At $500 a pop, he or she will need to win a few of them to help lessen the tuition burden. Be Warned
As always, parents need to watch out for scams. There are plenty of companies out there offering to find parents guaranteed scholarship money for the low price of, say, $39.99. What you get in return is a list of scholarships you could have found on your own for free. And with those hefty bills looming on the horizon, we bet you've got better things to do with your money than handing it over to some sleazy service.
