1. Advancing the collective impact of scholarship providers and the scholarships they award. Impact of Award Displacement on Students: Mitigating Practices and Solutions National Scholarship Providers Association Presented by: Delisa Falks, Director of Scholarships and Financial Aid, Texas A&M University Amy Weinstein, Executive Director, NSPA

2. Advancing the collective impact of scholarship providers and the scholarships they award. PREMISE All student financial aid professionals working inside and outside of colleges and universities have the best interests of students in mind Given that the cost of college continues to rise and that the Pell Grant has not kept up with inflation, it is important to not discourage the donation of private scholarship funds to pay for college

3. Advancing the collective impact of scholarship providers and the scholarships they award. Session Goals Increase awareness of explicit and implicit award displacement and the possible negative impacts of award displacement on students who have private, outside scholarships Improve communication between private, outside scholarship providers and student financial aid professionals to help maximize the benefit of private, outside scholarships for students Share and identify best practices in mitigating award displacement

4. Advancing the collective impact of scholarship providers and the scholarships they award. Award Displacement Defined Award displacement occurs when one form of student financial aid, such as a private scholarship, leads to a reduction in other forms of financial aid

5. Advancing the collective impact of scholarship providers and the scholarships they award. Example of Award Displacement

6. Advancing the collective impact of scholarship providers and the scholarships they award. Impact of Award Displacement Net price of college  Net Price is a discounted sticker price, the real cost of college. Cost of Attendance – Gift Aid = Net Price When a private, outside scholarship replaces student loans and/or student employment, the net price decreases. When a private, outside scholarship replaces grants, the net price does not change. If the net price does not change, the private, outside scholarship does not make it easier for the student and his/ her family to pay for college.

7. Advancing the collective impact of scholarship providers and the scholarships they award. Differences in Goals of Outside Scholarship Providers & Colleges

8. Advancing the collective impact of scholarship providers and the scholarships they award. Other Differences Different definitions of higher education costs  Child/dependent care costs, health care costs, clothing, computer purchase, study abroad costs, basic necessities Different definitions of demonstrated financial need Different definitions of expected family contribution (EFC) Federal Methodology vs. Institutional Methodology Different prioritizations of financial aid funds Different timing of financial aid awards

9. Advancing the collective impact of scholarship providers and the scholarships they award. More Differences... Colleges sometimes redefine demonstrated financial need according to institutional priorities, philosophies and funding availability (e.g., summer work expectation, minimum student contribution), Federal and/or State regulations come into play Some colleges leverage financial aid as a recruiting tool (e.g., preferential packaging, merit scholarships to wealthy students and targeted populations)

10. Advancing the collective impact of scholarship providers and the scholarships they award. Opportunities for Collaboration Now:  Coordinate timing of scholarship and institutional awards  Standardize policies  Make policies on private, outside scholarship available to students easy to read and locate  Reduce restrictions on uses of scholarships and awards  Allow deferment of scholarships to a subsequent year Near Future – Work together to change federal laws and regulations  To allow scholarships to cover the EFC and full COA  To eliminate the taxation of scholarships that are used for room and board  Make student loan forgiveness and cancellation tax-free

11. Advancing the collective impact of scholarship providers and the scholarships they award. Progress Toward Change White paper on Award Displacement – available at www.scholarshipproviders.org www.scholarshipproviders.org National Scholarship Providers Association (NSPA) is working with NASFAA’s Rapid Response Network to dialog on this issue The NSPA hopes to survey NASFAA members to determine whether award displacement is wide spread.

12. Advancing the collective impact of scholarship providers and the scholarships they award. College Success for All Students Through the Power of Scholarships 2015 NSPA Conference Oct. 12-14, Charleston, SC Register: http://bit.ly/nspa15http://bit.ly/nspa15