Spring Break
Financial officials expect decline in scholarships
The correlation between private donations and economic recession suspected as reason for decline
Natasha Pepperl
Issue date: 1/26/09 Section: News
Facing one of the greatest economic downturns since the Great Depression, CSU financial officials predicted the number and dollar amount of scholarships funded by private donations will decrease next year but said those for the 2008-2009 school year remain unaffected.
While employees from Student Financial Services and the CSU Foundation affirmed the decrease in scholarships awarded through the foundation, which receives and redistributes money from private donors as scholarships, they said there will be an increase in the number of institutional scholarships awarded by the university in the 2009-2010 academic year.
"The return on the investments is what is awarded to students in scholarships every year," said Christie Leighton, a staff member for SFS, of CSU Foundation scholarships. "Everybody's investments haven't had as good as a return as last year."
Next year will bring "some decrease in scholarships awarded through the (CSU) Foundation," Leighton said, adding that non-donated university dollars, or institutional money, can compensate for the anticipated reduction.
Institutional scholarships are not funded by donations, while scholarships awarded through the CSU Foundation are. The money that donors give to the foundation is invested, and the interest earned is used for scholarships.
Leighton, who noted the recession will affect the amount of money private donors give in the coming years, said she was unclear whether certain types of foundation scholarships would be equally affected or whether some would suffer more than others.
"We have not had to adjust any scholarship awards," Leighton said of 2008.
Many students said they worry about the ongoing recession in the nation and how it will affect them.
"I'm concerned about how my funds will stretch," said Josiah Burggraaf, a junior construction management major, when asked if the recession will impact his ability to return to CSU next year.
Freshman international relations major Lauren Heintz said she already relies on scholarships to attend college and said the worry of whether the recession will impact the availability of scholarships in the coming year weighs heavily on her mind.
While employees from Student Financial Services and the CSU Foundation affirmed the decrease in scholarships awarded through the foundation, which receives and redistributes money from private donors as scholarships, they said there will be an increase in the number of institutional scholarships awarded by the university in the 2009-2010 academic year.
"The return on the investments is what is awarded to students in scholarships every year," said Christie Leighton, a staff member for SFS, of CSU Foundation scholarships. "Everybody's investments haven't had as good as a return as last year."
Next year will bring "some decrease in scholarships awarded through the (CSU) Foundation," Leighton said, adding that non-donated university dollars, or institutional money, can compensate for the anticipated reduction.
Institutional scholarships are not funded by donations, while scholarships awarded through the CSU Foundation are. The money that donors give to the foundation is invested, and the interest earned is used for scholarships.
Leighton, who noted the recession will affect the amount of money private donors give in the coming years, said she was unclear whether certain types of foundation scholarships would be equally affected or whether some would suffer more than others.
"We have not had to adjust any scholarship awards," Leighton said of 2008.
Many students said they worry about the ongoing recession in the nation and how it will affect them.
"I'm concerned about how my funds will stretch," said Josiah Burggraaf, a junior construction management major, when asked if the recession will impact his ability to return to CSU next year.
Freshman international relations major Lauren Heintz said she already relies on scholarships to attend college and said the worry of whether the recession will impact the availability of scholarships in the coming year weighs heavily on her mind.
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