New UNC scholarship meant for middle-income students

With a rough economic climate, tuition hikes and a larger number of students qualifying for financial aid, families barely above the need-based aid threshold are feeling the pinch to pay for school.

But UNC and private donors have started a new scholarship program to alleviate the costs for students considered to be from middle-income families.

“The bottom line is that often those students who don’t qualify for government assistance are having to borrow more money than other students, and we know that,” said Shirley Ort, director of the Office of Scholarships and Student Aid.

The Office of University Development has responded by creating Advantage Scholarships for families making between $50,000 and $80,000 a year who just miss the financial aid qualifications.

The four-year scholarships are awarded on the basis of merit. The minimum annual scholarship is $5,000 for in-state students and $10,000 for out-of-state students.

The Office of Scholarships and Student Aid selected the first recipient this semester.

The scholarship’s development, which began in 2007, represents the impact of financial strain on college students. Ort said this is the first time UNC has raised money specifically for middle-income students.

“The students with wealth were fine, but there was this group of students that was falling through the cracks,” said Elizabeth Dunn, senior associate vice chancellor for development.

The scholarships are privately funded. It costs $100,000 to create an endowment for an in-state student and $200,000 for an out-of-state student.

Dunn said the expense has made finding donors more difficult.

“If a donor has $100,000, they could do four need-based scholarships or one middle-income merit-based scholarship,” Dunn said. “Merit-based and need-based aid scholarships are very different animals.”

Need-based scholarships are less expensive for donors than the Advantage Scholarships because the need-based scholarships are partially funded by the federal grant programs.

Only six scholarships have been made so far, but the Office of University Development and the Office of Scholarships and Student Aid are looking for more donors.

Devin Cooney, a freshman from Swansboro, was one of the first students selected to receive an Advantage Scholarship. He said the scholarship did not determine if he was going to college but will help enrich his experience.

“I probably would have gone to college either way, but it’s nice that I can to go to college without working,” Cooney said.

Dunn said the scholarship program cannot provide for all qualifying middle-income students.

“As many of these as we could possibly receive, the Office of Student Aid could award,” Dunn said.

Contact the University Editor at udesk@unc.edu.