For those who plan to attend college next fall, the economy’s steady decline has put scholarships at risk as college endowments nationwide have lost millions of dollars in value.
But for Emporia State University, there could be a silver lining.
The ESU Foundation’s endowment has seen a 25 percent drop in its value from the beginning of the fiscal year last July. As of March 31, the endowment’s value was $43.4 million, down from its $57.5 million value last summer.
But despite the risk to scholarships, local students may be turning to the Jones Foundation Tuition Voucher Program to ease the pain.
“Our students have not been affected that much by ESU because of the Jones Foundation,” said Teresa Maley, counselor at Emporia High School. “That has been a big, big help.”
The program, started in 2007 and expanded in 2008, offers $1,000 per year for up to four years to seniors graduating from schools in Coffey, Lyon and Osage counties to attend Emporia State University. The program also offers $1,000 per year for up to three years for students from those counties attending Flint Hills Technical College.
Maley said ESU will be getting at least 20 more students from EHS who otherwise probably would have gone to different schools, and others may follow.
“I’m hearing students saying, ‘Well, you know, if I go to ESU, the Jones Foundation is $4,000. That’s a lot of money, and I know I can get a good education,’” Maley said. “I think it could help ESU’s enrollment, I really do.”
Ed Bowen, counselor at Northern Heights High School, has seen similar developments.
“The Jones Fund is really helping the kids,” Bowen said. “Emporia State’s been really good. We’re feeling OK right now. All our ESU kids and our Flint Hills Tech College kids will at least get that Jones Fund voucher.”
At Heights, 20 of the 40 seniors qualified for the grants. Three are attending FHTC, the remaining 17 chose ESU.
Maley said she has heard from students who say scholarship opportunities are coming later and offering less money.
“Those are things we don’t want to hear for our kids,” Maley said, “but when they do know that the Jones Foundation is there, it’s set, it has increased, then that is swaying their opinion.”
Even with the endowment’s drop in value, scholarships for next fall at ESU may not be hurt too badly thanks to the efforts of the ESU Foundation and its donors.
According to Judith Heasley, the foundation’s executive director, the endowment’s 25 percent loss almost matches the national average of 24 percent as calculated by the Council for the Advancement and Support of Education, the agency that tracks the numbers.
Although Heasley will not have definite numbers until August, she estimated the foundation will provide about $1.8 million to the school’s financial aid office for next year’s scholarships. Last year, the foundation provided $1.953 million in financial aid to about 1,800 students.
“Our early results are showing us that we’re in that range, which is excellent news,” Heasley said. “That is a ballpark, early result estimate. It’s not set in stone. But we were very pleased to see that we are giving scholarships so close to last year.”
Reaching that amount hasn’t been easy. When an endowed fund drops below its donated value, it is said to be under water. Scholarships that are under water cannot be paid unless the donor makes up the difference.
As of Dec. 31, 31 percent of the foundation’s endowed scholarships were under water. Since then, foundation staffers have been calling donors and asking for help.
“The majority of our donors have really stepped up to the plate,” Heasley said, “and so we have a lot of scholarships that were under water that are still going to be awarded.”
Still, despite the optimism, there will be a drop in the amount of scholarship money available.
“I have no idea the amount,” Heasley said. “Everybody’s feeling the effects of the economy, even the donors, but they’re really trying. I have been so impressed with the Emporia community and with our donors.”
Elaine Henrie, ESU’s registrar and director of financial aid, said some students will certainly be affected, but she had no idea how many.
“I would think there would be less scholarship money available because there’s going to be less money available from the foundation,” Henrie said. “Scholarships will be available at ESU. That’s the good news.”
Henrie said she doesn’t anticipate a drop in enrollment through lack of scholarship money.
“Not at this point,” she said. “We’re doing everything we can to send award letters out as quickly as possible so students can have some idea how they’re going to pay for their education, and I think they’ve been really receptive to that.”
Although the effects of ESU’s endowment loss may be minimal, Maley said scholarships funded by individual organizations have taken a hit.
“There are a lot of clubs, organizations and businesses that have rescinded their applications for scholarships,” Maley said. “As far as our students, ones who have gotten scholarships in the past, I know of six that have been totally rescinded. Six scholarships that our students almost always get.”
As it is, the class of 2009 will be offered less money than those of 2008 and 2007, and it could get worse.
“The businesses have been affected immediately,” she said. “We will probably be more affected by the foundations at various schools next year.”
Maley said that when the recession started last fall, most schools had already set the amounts each student would get for a certain grade point average and ACT score. As the impact of the recession lingers, schools will have time to review and change the amount of money offered to students.
“I see it as a downhill slide,” Maley said, “and it’s really going to be bad next year unless something really fantastic helps.”
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