Trustees mull scholarship money

Officials might have the perfect bait to lure more top students to UNC-Chapel Hill next year if the University’s governing board approves a request today to allocate more funding for merit-based scholarships.

The Board of Trustees’ Audit and Finance Committee approved Wednesday a motion that would allocate 25 percent of revenues from trademark licensing to merit-based scholarships. The full board will vote on the motion today.

“It means a serious, a significant amount to academic merit-based scholarships, which I think is a movement to a much larger commitment,” Chancellor James Moeser said during an interview.

Since 1986, 75 percent of trademark revenues have funded academic scholarships, with 25 percent going to athletics programs. The reallocation would place 100 percent of trademark revenues in the hands of the Office of Scholarships and Student Aid.

UNC-CH’s trademark revenues and related investments netted almost $3.5 million for distribution in 2003-04. Of that amount, $2.6 million sponsored student scholarships, and about $868,000 funded athletics.

If trustees approve today’s proposal, officials expect about $800,000 to be available for merit-based scholarships — the equivalent of about an $18 million endowment.

The revenue would fund 55 scholarships for in-state students at $2,500 a year and five scholarships for out-of-state students at $15,000 a year. Students could renew the scholarship each year.

“That’s huge,” said Shirley Ort, director of the Office of Scholarships and Student Aid.

“So we’re pleased that we are going to have that funding available to use it for merit scholarships.”

The University now provides about 115 merit scholarships to incoming freshmen each year.

That figure excludes privately funded awards, such as Robertson and Morehead scholarships, as well as National Merit Scholarships.

Throughout tuition discussions this year, leaders have made merit-based scholarships a priority. A tuition elasticity study released last fall highlighted the importance of such awards at UNC-CH.

Admissions officers have said the small number of merit-based scholarships UNC-CH now offers is the top reason students provide when they decline admission to the University.

UNC-CH loses about half of the state’s highest-achieving students to outside institutions, and a boost in merit scholarships could prevent such a brain drain, Ort said.

“We think it will be especially helpful in recruiting more top-caliber students from the state of North Carolina to come here,” she said.

The funding shift in trademark revenues comes in light of the UNC-system Board of Governors’ decision last week to increase the University’s athletic fees by $100.

During their January meeting, trustees approved a two-year athletic fee increase — $50 next year and $100 in 2006-07 — to secure funds for a merit-scholarship program and the University’s Olympic sports program.

Because the BOG increased the athletics fee to $100, University officials said now is the perfect time to put funding for merit-based scholarships on solid ground.

“Our whole focus of discussion was merit scholarships,” said Richard “Stick” Williams, chairman of the Board of Trustees. “This is one of the ways to make that happen.”

Contact the University Editor at udesk@unc.edu.