2008 Woodie Awards
Scholarships
The basics and how the economy may affect your education
C. COLT CRANE<>Arbiter Journalist
Issue date: 10/13/08 Section: News
There are two types of scholarships available to students. The most common type of scholarship is called an endowed scholarship. The other is called a restricted scholarship.
What’s the difference?
The major difference between an endowed scholarship and a restricted scholarship is the manner in which each is established.
Endowed Scholarship
This type of scholarship begins when a contributor donates a corpus, or principal, of $10,000 or more. From this principal, a portion is allocated and used for distribution of scholarship funds. This allows the remaining corpus to gather interest for future scholarships. According to Vice President of University Advancement Howard Smith, $13.3 million for scholarships has been raised since 2004. For the current academic year, 56 percent of scholarships are endowed.
Restricted Scholarship
This type of scholarship is usually a one-time basis scholarship. It is not endowed and therefore does not accrue interest for future use.
A restricted scholarship is established when a contributor donates any amount of money to be used for scholarships. For example, if a contributor’s mother passed away and that contributor wished to donate $700 in her name, then the money would go toward a restricted scholarship. For the current academic year, 44 percent of scholarships are restricted.
What effects does the economy have on student scholarships?
The Boise State University Foundation raises funds for academic purposes.
“The interest of the Foundation is to fund as many scholarships as possible,” Smith said.
Smith also said the money raised for scholarships for the 2008-09 year has “… been escrowed away and the money is already protected.”
This means students who have been awarded scholarships for this academic year don’t need to worry about the effects of the economy on their awards. The scholarships will be honored.
Future scholarships are another story, Smith said.
“The economy will have an effect on scholarship availability,” he said, noting people may not feel as inclined to donate money if they are “feeling a financial pinch.”
What’s the difference?
The major difference between an endowed scholarship and a restricted scholarship is the manner in which each is established.
Endowed Scholarship
This type of scholarship begins when a contributor donates a corpus, or principal, of $10,000 or more. From this principal, a portion is allocated and used for distribution of scholarship funds. This allows the remaining corpus to gather interest for future scholarships. According to Vice President of University Advancement Howard Smith, $13.3 million for scholarships has been raised since 2004. For the current academic year, 56 percent of scholarships are endowed.
Restricted Scholarship
This type of scholarship is usually a one-time basis scholarship. It is not endowed and therefore does not accrue interest for future use.
A restricted scholarship is established when a contributor donates any amount of money to be used for scholarships. For example, if a contributor’s mother passed away and that contributor wished to donate $700 in her name, then the money would go toward a restricted scholarship. For the current academic year, 44 percent of scholarships are restricted.
What effects does the economy have on student scholarships?
The Boise State University Foundation raises funds for academic purposes.
“The interest of the Foundation is to fund as many scholarships as possible,” Smith said.
Smith also said the money raised for scholarships for the 2008-09 year has “… been escrowed away and the money is already protected.”
This means students who have been awarded scholarships for this academic year don’t need to worry about the effects of the economy on their awards. The scholarships will be honored.
Future scholarships are another story, Smith said.
“The economy will have an effect on scholarship availability,” he said, noting people may not feel as inclined to donate money if they are “feeling a financial pinch.”
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