Scholarships for College Dwindle

Students looking for college scholarships are going to have a harder time this year as providers, hammered by falling investment returns and declining philanthropic support, cut back.

The Fulfillment Fund, a nonprofit that works with Los Angeles public high school students, has reduced the number of college scholarships offered over the last three years by nearly half and has tightened requirements students must meet, said Maria T. Espinosa, director of program operations.

The Davis United World College Scholars Program, which last year began paying $20,000 per scholarship recipient at colleges that had at least five scholarship winners enrolled, has cut the amount in half, returning to pre-2008 levels.

“We’ve just been boxed in by circumstances we didn’t anticipate,” said Philip O. Geier, the program’s executive director, adding that he hoped to increase the scholarship payments in the future.

The recession has led foundations, corporations, state governments and colleges themselves to reduce their support of providers of scholarships, and in recent months programs have been reduced or canceled outright. The cuts come as economic conditions make it harder for families to pay for college and as more unemployed people look for financing for retraining.

The result will probably be a greater role for federal aid programs in supporting students, instead of private scholarship providers and state governments, said Terry W. Hartle, senior vice president for government and public affairs at the American Council on Education, whose members are colleges and universities.

“What you’re seeing are some shifts taking place,” Mr. Hartle said. Over all, there may be more aid money available as federal aid programs expand, he continued, “but some individuals may find themselves in much worse situations this year than last year.”

State grant programs have also taken a beating. In Pennsylvania, the maximum amount available to resident college students has fallen to $4,120, from about $4,700 last year, according to the Pennsylvania Higher Education Assistance Agency. California, confronting a severe budget crisis, is weighing the shutdown of a state scholarship program benefiting hundreds of thousands of students. The New York Times Company, which offers the Times College Scholarship to New York City high school students, this year cut the number of scholarships it provided to 12, from 20, according to a spokeswoman.

No one has a complete list of all scholarship providers, let alone a database that tracks how much money those providers pay out every year. But companies that administer and track scholarships say that a downward trend is clear.

Though scholarship funding is declining, scholarships are still available. The screening process is just a bit more stringent. You still need to seek in the right direction to acquire funding. Know your strengths and identify the school that you have interest in early.

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