Forward Thinker

Photo taken at the April 18, 2017 bill signing ceremony for Maryland House bill 266 / Senate bill 327 in the Maryland State House. Photo courtesy of the Executive Office of the Governor.

scholarship displacement

Definition

The National Scholarship Providers (NSPA) defines scholarship displacement as occurring when receipt of one form of financial aid, such as a private scholarship, results in a reduction in another form of financial aid, such as an institutional scholarship.

Problem Statement

Scholarship displacement penalizes students who have worked hard to apply for and earn a private scholarship. Displacement comes in different forms — scholarships, loans, and/or work-study can be displaced, or year to year displacement may occur after a college learns that a student has earned a renewable private scholarship.

the facts

A 2021 Student Beans survey found that 50% of US college students who
earned a private scholarship experienced scholarship displacement. Of that 50%, nearly 2/3 had an institutional scholarship reduced.

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A 2013 NSPA study found that 20% of universities say they will reduce a
student’s institutional scholarship after receipt of a private scholarship.

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Just two states, Maryland and New Jersey, have passed legislation restricting
scholarship displacement. Maryland was “first in the nation” in 2017,
restricting displacement at 4-year public universities. New Jersey followed in
2021 with Senate bill 985.

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the solutions

Advocacy is the answer! Through advocacy we can build awareness and create solutions. Michele encourages students to research the outside scholarship policy of any colleges they may apply to. She believes in
striving for win-win scenarios that benefit colleges and students. She is ready to help your organization help your students keep their private scholarships.

National Legislation

In 2021, Congressman Andy Kim introduced the first national scholarship displacement bill, “The Helping Students Plan for College Act”, focused on transparency and data collection. Michele is proud to partner with Zaniya Lewis of the YesSheCanCampaign as lead advocates for this bill.

Read more here.

 

Additional Resources

paying for college

All too often cost is not a consideration when choosing a college. Students and parents look at the campus, the dorms, the dining hall, the rock-climbing wall, the majors, the location, and other considerations, but many never ask how much will it cost and how will we pay for it until the bill arrives. That is way too late! Cost must be a consideration from the start of the search!

 

the facts

Paying for college is confusing!

There are 3,000+ colleges and universities in the US.

It is not always easy to find current and accurate information on how
much a college will cost. Colleges are required by federal law to post
a net price calculator on their web site, but sometimes this tool can
not be found, while sometimes calculations are based on outdated
price information.

Few students pay sticker price.

Price varies by student, and there is wide variation in price from
community colleges to public colleges to private colleges to for-profit
colleges. The price of public colleges vary widely for students from in-
state versus out-of-state.

Direct costs are listed on the bill (tuition, fees, room, and board) while
indirect costs (books, transportation, supplies, technology, other
expenses) are not.

There is gift aid (scholarships and grants) and self-help aid (loans and
work-study). Loans must be paid back with interest, work-study is not
guaranteed even when in the financial aid package and must be
earned by working at a campus job, while scholarships and grants are
gifts related to merit or financial need that do not need to be repaid.

There are many acronyms and terms that are misunderstood.

90% of students receive financial aid or earn scholarships.

There are many decision points and opportunities along the way.

The Solution

Information is the answer! Michele believes that financial education focused on paying for college will boost completion rates and lower student debt. She has developed new presentations on finding and funding college which can be customized for the unique needs of your organization and presented to your students.

Let’s Start Something new
lets talk!

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