University scholarships should operate with unanimity of purpose in support of excellence, and with close cooperation among functional program components from fund acquisition through student recruitment and recipient selection to award processing. It is the purpose of this document to provide a frame of reference for academic scholarships while addressing in greater detail some policy and procedural matters of academic concern.
Students are the raison d'etre of any university. Ultimately, they establish the norms of quality. At a great university, they must be good when they come in and noticeably better when they leave. As a major facet of Penn State's commitment to the basic principle of the Morrill Land-Grant Act of 1862 that education should be available to all who could qualify for it regardless of class or financial position. University scholarships shall operate to attract and retain the "best and brightest" in support of a university education suited to superior motivation, curiosity, and intellect.
The legitimate preferences of our scholarship fund donors shall be observed. The Pennsylvania State University does not discriminate in academic scholarship selection on the basis of age, health, sex, marital status, number of children, etc. Such information is useful in the selection of recipients of awards from endowed funds bearing restrictions based on handicaps, health problems, and sex restrictions, or to assist in assessment of appropriate living costs. Awards may be made from funds bearing such restrictions only if necessary compensatory funds are available from other sources as required under Title IX Regulations, Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973 and other authorities.
Basic policy for establishing or accepting funds for scholarships, graduate fellowships, grants-in-aid, and awards is set by the Board of Trustees. The current policy, approved May 16, 1986, is reprinted here:
Scholarship is an award of money to a student, granted in recognition of academic distinction, often, but not necessarily requiring that the recipient be in need of financial assistance.
Graduate Fellowship is an award of money to a graduate student, granted in recognition of academic distinction, often but not necessarily requiring that the recipient be in need of financial assistance.
Grant-in-Aid is an award of money made to a student in good academic standing and making normal progress. It usually, but not always, implies financial need. It may be an award of money to a student without regard to academic excellence who possesses certain talents sought or valued by the University, such as an athletic grant-in-aid or a music grant-in-aid.
Award is recognition for achievement of a single specific nature. It may be for grades, for activities, or a combination of both grades and activities.
Persons or organizations contemplating the establishment of scholarships, graduate fellowships, grants-in-aid, or awards should discuss the procedures and requirements with the proper officers of the University. A written proposal addressed to the President with the proper University official for the specific proposal.
Scholarship, graduate fellowship, grant-in-aid, or award funds should have few or no limitations placed on them by the donors. If possible, the funds should be flexible enough to provide aid where most required and to be available in order that all students have an opportunity to be potential recipients. The University will not administer a student aid program that is contrary to the law, or restricted on an unreasonable geographic basis.
In order to establish a separate endowment fund scholarship or grant-in-aid in memory of a person, or to honor a person, organization, or program, the capital sum for investment, in the absence of unusual circumstances, shall not be less than $15,000. The funding level for a named Academic Excellence Scholarship in support of the University Scholars Program shall require a minimum endowment of $25,000. A capital sum of $10,000 or more will be accepted for inclusion in one of several University-endowed scholarship programs to establish a scholarship in the name of a person, organization or program. Sums less than $10,000 are accepted for placing without specific designation in existing University scholarship programs.
To establish an endowed graduate fellowship, the capital sum for investment, in the absence of unusual circumstances, shall not be less than $50,000.
A separate endowed award in memory of a person or to honor a person may be established with a capital sum of $5,000.
Any sum of $1,000 of more is accepted to provide a scholarship or grant-in-aid in the names of an individual, organization or program on an annual basis and may be continued for as long as the sponsor provides the funds.
1. Scholarship guidelines should be University-centered rather than donor-centered; and though they may bear restrictions to specific colleges, campuses, and majors, to the maximum extend practicable such guidelines shall be in consonance with standard University practice and procedure and shall be developed in coordination with the Office of University Development and the Office of Student Aid. Approval and acceptance for the University is a responsibility of the Treasurer, with final approval by the Board of Trustees.
2. Recipient selection and recognition authority resides with the scholarship fund-controlling college, campus, or special committee. Committees may make awards, within the limitations of the guidelines approved by the donors and Board of Trustees, as they see fit. It is incumbent upon such committees that the consequences of their awards on student's aid packages be understood.
3. Scholarship awards may required the Office of Student Aid to reduce or recoup other aid already utilized by the student. Scholarship awards made early in the awarding year enable the aid package in the most appropriate manner. If other aid is already in place, the scholarship committee should confer with Student Aid to determine the most suitable action. Scholarship awards are subject to continued review by the office of Student Aid throughout the year as other aid information becomes available. Application of the following limitations is dependent upon the aid sources held by the student.
a. Allowable Gift Aid Limitation. This applies to all Pennsylvania Higher Education Assistance Agency (PHEAA) grants. A student should not receive University scholarship funds which in addition to other gift aid (grants/scholarships) would exceed; the sum of tuition, room and board, and books; or the PHEAA maximum allowable gift aid limit if higher. Scholarship awards should be reduced as necessary to remain within these limits. Loans and wages are not included in gift aid calculations. PHEAA grants will be reduced if scholarship awards place the grant recipients above the gift aid limit.
b. Cost of Attendance Limitation. This applies to all Guaranteed Student Loans. The total aid (including loans and wages) any student may receive should not exceed the total allowable costs of attendance; tuition, room and board, books, transportation, clothing, laundry, medical, dental, personal, recreation, and miscellaneous expenses as established by the Office of Student Aid. Scholarship awards should be reduced as necessary to remain within such limit ; however, students should be permitted the option of early repayment of current year loans in order to reduce their aid total sufficiently to permit processing of scholarship awards. Scholarship awards should not be reduced because of wages earned subsequent to receipt of the scholarship. Early repayment of Guaranteed Student Loans (GSL) will be required if a scholarship award places the GSL recipient above the cost of attendance limit.
c. Financial Need Limitation. A student should not receive and may not retain need-based aid; National Direct Student Loan (NDSL), Supplemental Educational Opportunity Grant (SEOG), and/or College Work Study Program (CWSP); in excess of documented financial need. If other aid cannot be revised to remain within documented need, need-based scholarships should be adjusted. Immediate repayment of NDSL and/or SEOG will be required if a scholarship award places the NDSL/SEOG recipient above the documented need limit.
d. The Office of Student Aid shall not adjust scholarship awards made by college, campus, or other committees but shall limit any adjustment action to the specific aid source to which the limitation applies.
e. Nothing contained herein should operate to prevent additional recognition of deserving students by awards without monetary remuneration.
4. Unless otherwise specified in the specific scholarship fund guidelines, all recipients shall be:
a. U.S. citizens or eligible noncitizens (foreign nationals are not eligible).
b. Full-time degree-seeking Penn State undergraduate students.
(1) If students are not registered, current and future semester awards should be cancelled.
(2) If students are registered part-time, current semester awards should be cancelled but future semester awards should remain available.
(3) Special exceptions may be authorized on a case-by-case basis for students in their last semester.
c. Exceptions to a. and b. above may be authorized by the Coordinator of University Scholarships on a case-by-case basis.
5. Proper accounting procedures should be observed with all awards.
a. Accounts may not be overdrawn; awards may be made only for the academic year for which funds have been reported available by the Office of Student Loans and Scholarships.
b. Awards should be credited to students' accounts and refunds obtained following normal procedures. Special certificates/citations should be used for presentation ceremonies wherever possible. Special request for checks should be kept to a minimum.
c. Retroactive awards (for past semesters) may not be authorized.
6. Scholarships should be awarded to entering freshmen as early as practicable. Other scholarship awards may be made after that time, up to the last day of finals for a particular semester/session. No awards may be made to a previous semester/session.
7. All reasonable efforts should be made to find eligible recipients. Utilized funds should be kept to a minimum.
8. At the end of the fiscal year, unutilized earnings should be added to the principal of endowed funds unless specific arrangements to the contrary are made in advance. The principal shall not be invaded.
9. Scholarship awards should be processed before the offer is transmitted to the student. Direct entry on the Administrative Information System (AIS) is sufficient. Procedures for direct entry are covered in the General Forms Usage Guide, page 9.19.
Cohesive and effective scholarship administration is enhanced through the very close cooperation of the offices and committees with different scholarships responsibilities.
1. Bursar. The Officer of the Bursar maintains cognizance of students accounts, and refunds upon student request any scholarship monies to recipients after University charges have been satisfied.
2. Faculty Senate. The University Faculty Senate Constitution provides that scholarships are within the legislative jurisdiction of the Senate. The Standing Rules provide that the Committee on Student Life shall also recommend policies and procedures relating to student awards and scholarships.
3. Scholarship Committees. Scholarship committees and their coordinating college or campus office, if any, are responsible for:
a. Selection of recipients in accordance with the specific fund guidelines as approved by the donors and the Board of Trustees.
b. Verification of recipient eligibility with the latest AIS information.
c. Entry onto AIS of scholarship awards prior to notifying recipients.
d. Notifying recipients in writing after AIS data entry.
The Senate Scholarship Committee has cognizance of all undergraduate scholarship awards and administrative responsibility for awards and their renewals from funds not assigned to other committees and unrestricted as to college, major, and campus.
The Freshman Scholarship Committee has cognizance of awards and their renewals to entering freshman and advanced standing undergraduates and administrative responsibility for such scholarship funds not assigned elsewhere. The chairperson of the Senate Scholarship Committee shall be member of the Freshman Scholarship Committee.
Faculty should be represented on all scholarship committees.
4. Student Aid. The Office of Student Aid, for the Vice President for Academic Services, is responsible for:
a. University-wide coordination of undergraduate scholarships to include the provision and maintenance of up-to-date financial aid information, the collection and distribution of applications as required, and the production of consideration listings as appropriate.
b. The security of the AIS student aid summary screen, and permitting access to it.
c. The correction of financial aid overawards.
d. The administration and support of assigned scholarship programs such as the Penn State Academic Grant, the Black Incentive Grant and Black Achievement Award programs, the Penn State Commonwealth Campus Scholarship and Commonwealth Campus Kunkle Scholarships, and the Kodak Scholars program.
e. Administrative support to the Freshman Scholarship Committee, the Renaissance Scholarship Committee, and the University Scholars program.
f. Providing scholarship information, and financial aid information as appropriate, to the Faculty Senate Committee on Student Life.
5. Student Loans and Scholarships. The Office of Student Loans and Scholarships, for the Senior Vice President for Finance and Operations and Treasurer, and the Controller, is responsible for:
a. Recording scholarship guidelines and assigning AIS source codes following Board of Trustees approval and receipt of the funds.
b. The security of the AIS scholarship awarding screen and permitting access to it.
c. Disbursing awards to the individual student account in the Bursar's Office. Disbursements are defined as the movement of monies from the scholarship budgets into the student's account by the Office of Student Loans and Scholarships. In exceptional situations, an "award document" (FORM Q-1) must be forwarded to the Office of the Assistant Treasurer or the Office of Student Loans and Scholarships for the preparation of a special check on behalf of the student. In such cases, the check must be picked up in the Office of the Bursar by the student or an authorized individual.
d. Reporting recipients and fund balances to the Treasurer's Office for reports to the donors and Board of Trustees, and to the Vice President for Academic Services for scholarship program review.
e. Reporting estimated funds available for award, including unutilized fund balances, to the appropriate offices and committees.
6. Treasurer. The Office of the Treasurer acts for the University in the acceptance of funds. Funds for University scholarships are received, deposited, and processed according to University policy. (Ref: Policy Manual, CS-3) This does not pertain to scholarships awarded directly to students from outside organizations and which are not covered by guidelines from the University Board of Trustees.
7. University Development. The Office of University Development is responsible for the coordination of scholarship fund raising efforts and donor contacts. The appropriate development officer should be contacted in the earliest stages of scholarship development. The Development Office is responsible for the preparation of scholarship guidelines, in consultation with the Office of Student Aid, in the proper format for submission to the Board of Trustees.
Any conflicts with the policy contained herein should be brought to the attention of the Coordinator of University Scholarships in the Office of Student Aid.