Dear Class of 2009,

With the current state of our economy and the realization that our class is the largest class yet to graduate, I have heard many rumors and much speculation over college admissions, scholarships, and payment options. I am here to say, Class of 2009, have no fear. The year-long Hawk Eye college application finance guide is here.

This year we will explore the on-going effect that our economy has on the admissions process, scholarships, and financial package options. In a poll derived from CollegeBoard.com, there is a staggering statistic that over one-third of the students applying to college indicated the news about this year’s admissions environment will lead them to change their own college-choice behavior. The vast and incessant media coverage regarding the economic crisis is not helping their struggles and has many students, parents, and admissions counselors talking.

With so much speculation, and too few answers, here are the facts. Due to the economic struggle our nation is facing, colleges and banks which usually offer a large amount of endowments and investment money towards loans and scholarships are now taking away many of these opportunities, thus placing a large burden on students everywhere. This struggle, although not as largely burdensome in affluent areas, is starting to hit close to home. In this time, we must remember that no community is immune to economic struggle, and that Council Rock families are feeling the crunch.

“Many students today have an idea of the big picture, how they want to spend their money, the debt which they will accumulate, if they want to go to graduate school, how much they are willing to spend,” said guidance counselor Ms. Nicole Ventresca,

“It seems that kids and parents are communicating more now, as though financial conversations aren’t as taboo anymore,” she said.

This “big picture” allows students to realize realistic goals both academically and financially, and helps them and their families understand what they need to do in order to succeed in their planning.

The truth is, most parents do not have four years’ worth of money saved up for college. This is where scholarships and student loans come into play. Normally, scholarships are obtained either by merit or through scouts. For instance, with a 3.3 and a 1200, a student applying to St. Joseph’s University in Philadelphia can earn a few thousand dollars worth of a merit based scholarship. Arts and sports scholarships are also achievable with the help of portfolios and scouts.

However, in order to give such scholarships, colleges must tap into their Endowments. Unfortunately, there seems to be much instability when it comes to college’s endowment receiving and spending.

“Each university has an endowment, a "spending policy," which is usually a three-year average of interest earned,” said Christopher Walters. “The current economic crisis is going to decrease school spending policies, but it's too early to

know just how much.” Walters is the Associate Director of Enrollment Management & Retention at Penn State Abington.

This grant sensitivity is likely to rise substantially, particularly for low and middle income students. Institutions that rigidly adhere to fixed discount rates or that have no ability to change their ability to award aid will likely suffer. Endowments which usually go to renovations, school functions, and scholarships are getting cuts. This is because much of the money given to the universities is invested.

The trend is upsetting; Money from colleges invested, money lost in stock, scholarship opportunities lost. Yet, for too many families, it is all too real at this time. Unfortunately, at this point in the game, we may as well ask our lucky 8-balls for answers regarding endowment security and scholarship chances.

If you are unsure about how do deal with the changing economy in terms of scholarships, talk to an adult you trust. Admission counselors in our area are great people to come in contact with, and they are usually accessible through email addresses on college websites.

Perhaps the most important person to talk to, however, is your parent or guardian. Ventresca advises to keep the communication lines open throughout the admissions process, and never hesitate to ask about loans, scholarship options, and other financial packages. Also, make sure your parents know what colleges you are applying to. The difference between a four-year school and a two-year school and the different financial aid packages you may receive are quite significant, so your parents should be involved in the admissions process as much as possible.

The struggle that many families are facing in the Council Rock district has not really changed the admissions options for graduating seniors, though. “About 20 percent of our students still go to community college or a two year institution, the same number as years past, and 75 percent of students are applying to four year schools,” Ventresca said. Keeping in touch with your counselor throughout the year will help you when it comes to seeking financial aid options and obtaining extra information about the colleges which you are applying to.

Below is a list of tips provided by counselors Ventresca and Ms. Jennifer Clemmer in order to de-stress and put into perspective the overall decision that each accepted student will eventually have to make. In the meantime, apply, talk to your parents, and talk to your counselor throughout the year. And most importantly, don’t worry!

Sincerely,

Sarah Davey

Some tips to keep college costs low:

Don’t Underestimate the Power of a State School: In state schools are convenient, and are usually much cheaper than out of state colleges. Pennsylvania has a large assortment of Universities, ranging from Ivy League Penn to less costly Shippensburg. You will be guaranteed to get a lot of bang for your buck as long as you try your hardest once you get there.

Keep College Visits to a Minimum: It is not unusual for parents and students to go on East Coast college tours. However, when the tour consists of five or six “maybe” schools, it may not be worth the time, effort, or money. Instead, after you get accepted, visit the institutions which you feel most passionately about; then, visit the few top schools you have in mind.

Talk to Your Parents about Financial Issues: Although this topic is not necessarily taboo any more, keep the communication lines open. If they do not talk to you about how they (or in some cases, you) are going to pay for college, start the conversation!

Waitlisted? No Problem: Because of the economic downturn, colleges are receiving fewer applications and fewer acceptances. Scrambling to make their numbers, colleges begin to accept those who are waitlisted and, therefore, often make great financial aid packages.

Early Action: Many schools are now steering away from binding Early Decision, and are instead beginning to add Early Action (EA) to their admissions process. EA allows students to hear back from the university sooner than regular decision applicants, usually before winter break, and is not binding. This means the students applying EA can compare financial packages and make sure that they choose the absolutely perfect school. What could be better?