College Merit Scholarships

Paying for a college education is a daunting proposition.  The 4-yr combined Cost of Attendance (COA) including tuition, room, board, books, fees, and travel averages over $100k.   Because of the escalating price tag, parents are increasingly interested in finding out ways to curb these costs.  For many, qualifying for financial aid is not an option, so as advisors we ask clients to start to save in a college savings vehicle at an early age.  There is one area that often goes unexplored, Merit Scholarships.  Merit scholarships are awarded based on academic achievement.

Criteria for merit scholarships vary by school but boil down to grades and test scores.  Think of your student’s GPA as the ticket to be considered for aid.  Most schools have a minimum threshold GPA. If the minimum threshold GPA  is 3.5 and your student has a 4.0 it doesn’t make her a more favorable candidate.  All that matters is that your student qualifies for the consideration pool.  In some instances, there are multiple tiers based on GPA, but they are less common.  The second element for consideration is standardized test scores, specifically SAT or ACT scores.

Once your student is in the consideration pool, then their ranking within the incoming freshmen class is the driver.  Being in the top percentiles of test scores could mean sizeable merit dollars, while the lower end likely means much smaller amounts.  So, TEST SCORES matter A LOT!  Which is why in many situations there is a value in increasing your student’s scores, even by a little.  Because test scores and merit aid are highly correlated, it may be advantageous to hire a private tutor in order to achieve higher scores which would equate to more merit aid. 

Another factor to consider when trying to find aid is the generosity of the school.  Some schools are very generous awarding multi-millions each year, while other offer practically nothing.  If merit scholarships are important to you, then target generous schools.  However, finding the right school, can be like finding a needle in a haystack.  To start, create a list of potential schools.  Then check each one for their non-need-based merit generosity within the school’s profile on www.collegedata.com.

For example, Trinity University in San Antonio TX, is a generous school.  They awarded non-need-based scholarships to 51% of all freshmen with an average award amount of $22,100.  In contrast, the University of Washington awarded non-need-based scholarships to only 9% of all freshmen, with an average award amount of $4,043.  Alternatively, Washington State University awarded 30% of incoming Freshman with merit awards, with an average merit aid of $4,689

2018-19 Financial Aid for Freshmen

While total financial aid as percent of Cost of Attendance (COA) is declining there is an upward trend in merit scholarships.  In today’s world, schools are motivated to attract students with the highest grades, best test scores, and numerous accolades.  Why?  Because their customers place weight on those factors. Think about the recent college admission scandals that have hit the news.  These parents paid hundreds of thousands of dollars and helped their kids cheat on their entrance exams because they wanted their kids to be associated with select schools’ academic reputation.  Does going to these schools mean your child will get a better education and get ahead more easily?  Not necessarily, but the perception is that it will, so parents are willing to pay more in tuition to send their children to these schools.

For opportunities to learn more about merit scholarships and how to assess the opportunities for your future college student, you have a couple of options.  You can do your own internet searching, starting with these websites:

• Test score distribution data can be found by school at www.collegedata.com (requires free registration) under their “admissions” tab.
• Non need-based awards: Go to www.collegedata.com, click on the “money matters” tab.  The last section under the sub-heading “Profile of 2018-19 Financial Aid – Freshmen”; you will find the last data point states the percent of students receiving non need-based merit awards and the average dollar award.  Generosity is higher when the percent of recipients is higher, and the average dollar award are higher.

Another option is to contact your Kaizen advisor to schedule a time to review your student’s college prospects and opportunities.   

Also, this month we will be presenting at two different venues.  This week we will be at the Sammamish Library  (825 228^th Ave SE) on Thursday, November 7^th at 6:30pm and on Monday, November 18^th we will be at Inglemoor High School (15500 Simonds Rd NE, Kenmore, WA 98028) in the school’s drama theater starting at 6:30pm.

If you have questions regarding how to help your student achieve their dreams and financially prepare for college, please don’t hesitate to reach out to us.   We are here to help you navigate all the financial hurdles in your life. 

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