New scholarship created as grants become scarce with budget cuts

Revenue from the UNC trademark will be allocated to a new privately funded scholarship that administrators say could be used for many purposes.

The scholarships, awards and student aid committee discussed the final details of the Cornerstone Scholarship on Friday.

The committee allocated $1.25 million for the scholarship as a match for private donations, and received an additional $500,000 from an anonymous donor, said Shirley Ort, associate provost and director of scholarships and student aid.

Elizabeth Dunn, senior associate vice chancellor for University development, said private donors will donate a minimum of $100,000, and the committee will match half the amount donated to fund one scholarship.

Bill Whisenant, major gift officer in the Office of University Development, said if donors give the minimum amount, 35 scholarships will be created.

Ort said the Cornerstone Scholarship is flexible, and the funds can be used for need or merit aid, or study abroad and research programs.

“Our future is so uncertain, so funds will be for whatever the University needs to accomplish its mission,” Ort said.

The committee also discussed the likelihood that students will have rely more on loans rather than grants in the coming years.

Ort said that in the past 10 years, every time tuition has increased, grants have remained the primary source of financial aid for students.

But fewer grants will be offered in future years, Ort said. State funding for grants was cut by 20 percent this year, costing UNC students $2.5 million, she said.

Even without an increase in tuition, students who would normally receive grants might need to take out loans instead, she said.

At the September meeting of the Board of Trustees, Ort said the number of UNC students who borrow money — and the amount they borrow — is low in comparison to peer institutions.

On average, 47 percent of graduating seniors in 2009-10 borrowed at peer institutions, compared with 31 percent at UNC, she said.

The average debt of graduating seniors at peer institutions was $21,407, while average debt at UNC was $16,165.

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