Wall Street Problems Affect Scholarships

We are all seeing our investments dump during this economic down turn with the plummeting stock market. But how does this affect students and scholarships? Endowed scholarships are dwindling with the market, due to the low returns on invested funds.

At Napa Valley College, investments have dropped 25 percent due to the stock market slump, said Sonia Wright, Napa Valley College Foundation executive director.

Endowed scholarships are often called gifts that keep on giving, and one source of money students with financial needs turn to help pay for college. The donor's initial financial gift is invested, and each year scholarships come from a portion of the amount that is invested. Scholarships can be given in perpetuity because the bulk of the donation, or the capital, is continuously invested.

But Napa Valley College is certainly not alone in seeing low returns on investments on endowed scholarships. Small returns have hurt colleges and universities of all shapes and sizes.

This will continue to be a big problem for the present and near future. Though some endowed scholarships will be hit hard, there are other opportunities for funding your degree.

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