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New CollegeBoundfund Academic Promise Scholarship Offers High School Students Significant Awards for CollegeSuccess of CollegeBoundfund Across the Nation Brings Dollars Home to Rhode Island Students
FOR IMMEDIATE RELEASE/October 11, 2002
Warwick, RI – General Treasurer Paul J. Tavares and Rhode Island Higher Education Assistance Authority (RIHEAA) Executive Director William H. Hurry, Jr. this morning announced a new higher education scholarship at a breakfast meeting with guidance counselors, students and financial aid administrators at the Radisson Hotel in Warwick. The CollegeBoundfund Academic Promise Scholarship program provides the state's most financially challenged and academically accomplished high school seniors with up to $10,000 for four years of full-time college study. The scholarship is funded through proceeds coming to RIHEAA from sales of the state's highly successful section 529 tuition savings plan managed by Alliance Capital - CollegeBoundfund. "Rising higher education costs are making it more difficult for students to achieve their goal of going to college. We can help children realize their dream of earning a college degree in two ways. The first is by teaching families the importance of saving early and often by investing in CollegeBoundfund. The second is to provide the students who truly need financial assistance with the resources to pay for college," said Treasurer Tavares. "By creating America's largest 529 plan, the state has secured money on the national level to bring dollars home to deserving students. We're delighted that the success of CollegeBoundfund has translated into scholarships for Rhode Island residents." "Over the past fourteen years, state funding for the Rhode Island State Scholarship/Grant Program decreased some 50 percent. And, we've seen the reliance shift from grant aid to student loans," said Hurry. "Utilizing funds from CollegeBoundfund, we wanted to create a new scholarship program that offers a substantial financial award to help the state's neediest and brightest students attend college. We believe there is a definite need for these scholarships and hope this program will begin to fill a void where state funding for student grant aid falls short." Sean Mooney, a 2002 graduate of William E. Tolman Senior High School and first-year scholarship recipient, spoke about how the scholarship impacted him. And, Linda Travers, his guidance counselor at William E. Tolman Senior High School discussed the importance of informing students about this significant scholarship and the opportunity it provides students to attend college. Scholarship HighlightsThe CollegeBoundfund Academic Promise Scholarship will offer eligible students up to $2500 per year for four years for a total of $10,000 towards their higher education - giving more students the chance to pursue their goals. The scholarship continues to promote academic excellence by requiring award recipients to maintain a pre-determined grade point average, or the equivalent, for each year of the scholarship. To be eligible, the student must be a graduating high school senior and take the Scholastic Assessment Test (SAT) or the American College Test (ACT). The student must also complete the Free Application for Federal Student Aid (FAFSA) by March 1, so that RIHEAA may determine the student's financial need. In addition, students are required to enroll full time in an institution of higher education to be eligible for the scholarship. (A detailed description on criteria and eligibility is attached.) The CollegeBoundfund Academic Promise Scholarship is funded by fees generated from national sales of CollegeBoundfund. Through the contract signed by the State of Rhode Island and Alliance Capital to manage the state's 529 program, it was mandated that all account maintenance fees paid by non-Rhode Island residents and a portion of out-of-state direct sales fees be returned to the state for the development of CollegeBoundfund grants and scholarships. Due to the success of CollegeBoundfund, now America's largest 529 plan with nearly $2.2 billion in assets under management, more than $2.5 million has been generated for such programs. Although the CollegeBoundfund Academic Promise Scholarship is being announced officially today, RIHEAA was able to approve scholarship rules and regulations in time to offer awards to high school seniors graduating in 2002. As a result, approximately 100 Rhode Island students have already received scholarships for academic year 2002/2003 valued at $1 million over four years. In subsequent years, out-of-state revenue generated by CollegeBoundfund will continue to provide funding for scholarships to new high school graduates. First-year scholarship recipient Sean Mooney said, "I am the first of five children in my family to go to college and without this scholarship, I would be in debt for years after graduation. The CollegeBoundfund Academic Promise Scholarship has helped my family a great deal and lifted an enormous burden off our shoulders." CollegeBoundfund Academic Promise Scholarship Offered When College Costs Are on an Upward Spiral and Federal and State Grant Aid Is on the DeclineAccording to the College Board, in the past ten years, the total cost for tuition, fees and living expenses of a four-year private college has risen 36 percent and the price tag to attend a four-year public college increased by 39 percent. Today, a student may pay nearly $48,000 for college expenses at a 4-year public institution, and nearly $105,000 if they choose to attend a private school. In the last year, tuition alone climbed 7.7 percent for public colleges and 5.5 percent for private institutions. And while these costs have risen significantly, student grant aid continues to decline. The Rhode Island State Grant Program declined more than 38 percent between 1990 and 2002. Twelve years ago, the average state award was $1,090, and today the average grant has declined by $474 to only $626. The decrease in funding available for student grants has forced a dramatic increase in the volume of student loans – now the prime source of financial aid. Unfortunately, loans leave too many students mired in debt for years after earning their degree. The CollegeBoundfund Academic Promise Scholarship may help to lessen their reliance on student loans. CollegeBoundfund Academic Promise Scholarship OutreachTo ensure students are aware of the program, brochures detailing the eligibility requirements have been distributed to high school guidance counselors and higher education financial aid administrators. The brochures have been printed in both English and Spanish and will also be distributed to various community organizations throughout the state. For more information or if you would like to request a brochure, please call 401-736-1100 or visit www.riheaa.org/academicpromise. CollegeBoundfund DetailsRhode Island's CollegeBoundfund, a state-sponsored college savings plan created under Internal Revenue Code 529, offers families a powerful and simple way to save for a child's higher education. The plan, which is sold across the nation, offers low minimum investments, flexibility and 15 investment options managed by Alliance Capital, one of the world's premier investment firms. Funds from the 529 CollegeBoundfund may be used at any accredited higher education institution across the nation. For more information call 1-888-324-5057 or visit collegeboundfund.com. Rhode Island Higher Education Assistance Authority Contact RIHEAA | Privacy | Accessibility RIHEAA policy prohibits discrimination based upon race, color, sex, age, gender identity or expression, national origin, religion, handicap/disability status, veteran status, or sexual orientation.
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