Undergraduate Student Aid FAQs
1. How will Far Above…The Campaign for Cornell benefit undergraduate students?
2. Who receives financial aid at Cornell?
4. Hasn’t Cornell been raising more funds to support undergraduate financial aid in recent years?
6. Why isn’t Cornell doing even more to address the rising costs of attending the university?
7. How does Cornell fund financial aid for undergraduates?
8. What will a typical financial aid package look like under the new policy?
9. What size gift is needed to endow a scholarship? What funding opportunities are available?
10. How can I support current needs?
11. Who at Cornell can I contact for more information?
1. How will Far Above…The Campaign for Cornell benefit undergraduate students?
Far Above…The Campaign for Cornell seeks to raise more than $4 billion in support of students, faculty, programs, and state-of-the-art facilities. Cornell’s signature commitment to “any person…any study” is the heart of the university. To affirm and extend this vital trust, Cornell must secure need-blind access for undergraduate students. Increasing endowment and immediate-use funding for scholarship aid will enable Cornell to offer students a world-class education without the burden of debt. The university is committed to strengthening its need-based undergraduate financial aid program at unprecedented levels. To do so, Cornell seeks to raise $350 million over the course of the campaign.
Additional student-centered goals of the campaign include raising funds to strengthen living-learning opportunities, as well as to support international, graduate, and professional students.
2. Who receives financial aid at Cornell?
Cornell University awards undergraduate financial aid on the basis of need. Students are admitted to the university based on their qualifications, without regard to their ability to pay for their education. This policy is called “need-blind” admissions. While this practice reflects the egalitarian values that have defined Cornell’s mission since 1865, the costs are significant. Cornell spent $145.5 million of its own resources (including university income from endowment and current-use gifts) on undergraduate financial aid in 2008–09. Ninety-seven percent of that amount was spent on grant aid, which does not have to be repaid to the university. More than 60 percent of Cornell’s undergraduates receive some form of financial aid.
3. What are the benefits of and challenges to Cornell’s ability to maintain its need-blind admissions policy?
Keeping Cornell affordable to talented students from all backgrounds is more important than ever, given the economic challenges of many families. There are, however, two major challenges. First, public funding for higher education—at both the state and federal levels—covers less of the cost of higher education than it did 10 years ago. As a result, current tuition at major research universities like Cornell covers only half to two-thirds of what it costs to educate undergraduates. (In effect, each student receives a subsidy to study at Cornell regardless of whether he or she is awarded financial aid.) Second, because Cornell admits students without regard to economic circumstances, the overall cost to Cornell of providing financial aid can vary significantly from year to year.
4. Hasn’t Cornell been raising more funds to support undergraduate financial aid in recent years?
Yes. Generous alumni and friends have increased their support in recent decades, but the need for scholarship gifts has continued to rise. The proportion of Cornell students who receive financial aid has increased to 61 percent from 49 percent ten years ago. State and federal government support for financial aid (including grants, loans, and work-study) dropped to just 19 percent of Cornell’s financial aid budget from 50 percent.
5. There has been heightened attention in recent years to the difficulties of many students and their families in meeting the tuition costs at private colleges and universities. What is Cornell doing to address this issue?
In 2008, pledging to make student aid a hallmark of his presidency, President David J. Skorton announced plans to expand undergraduate financial aid in order to make Cornell more affordable to students from low- and middle-income families. Through this expansion, which was fully implemented in fall 2009, Cornell has limited need-based student loans and reduced the parental contribution for selected students, allowing them to graduate with little or no loan debt.
Specifically, Cornell has:- Eliminated need-based student loans for students from families with income of $75,000 or less
- Capped need-based student loans at $3,000 for students from families with income between $75,000 and $120,000
- Capped student loans at $7,500 annually for students who have financial need and whose families have annual incomes above $120,000
- Eliminated the parental contribution for students from families with incomes below $60,000 and assets below $100,000
- Reduced the parental contribution for selected students who have financial need and whose families have annual incomes above $60,000.
At an additional cost of approximately $29 million annually, this increased commitment to scholarships will allow many Cornell students to graduate debt free and will relieve the least economically advantaged parents of having to make a contribution. This initiative provides generous benefits to students from low- and middle-income families, but also addresses the needs of all families who qualify for need-based financial aid. These changes are prompting more accepted students to enroll at Cornell, easing the debt burden for current students, and conveying a strong message about the value the university places on socioeconomic diversity within its student body.
6. Why isn’t Cornell doing even more to address the rising costs of attending the university?
Many of its peer institutions have taken significant measures to make their education more affordable, but Cornell’s efforts are notable for two reasons. First, Cornell has a large undergraduate population that requires financial aid. In fact, Cornell’s financial aid population is larger than the entire undergraduate student body at some peer institutions. In addition, Cornell enrolls a greater number and higher percentage of students from families in the lowest income groups than most of its peers. Students from families that have annual incomes below $45,000 qualify for federally sponsored Pell Grants. In fall 2008, Cornell had 1,753 undergraduates receiving Pell Grants, nearly 14 percent of the university’s undergraduates.
Second, Cornell is providing additional aid to students and their families even though it is much less wealthy than some other institutions. Although Cornell’s endowment is significant, in comparative rankings on a per-student basis Cornell ranks 73rd—far below almost all of its peers. For this reason, Cornell has taken care to target its new financial aid policy to the students and families who most need assistance with college costs.
7. How does Cornell fund financial aid for undergraduates?
In 2008–09, Cornell’s undergraduates received more than $187.7 million in financial aid, including grants, loans, and work-study. Fifty-eight percent of this came from the university’s general operating budget. The other 42 percentcame from income from university student aid endowment gifts (19 percent), a combination of federal and state funds (19 percent), and various external sources (4 percent).
8. What do typical financial aid packagse look like under the new policy?
The chart below demonstrates the impact of Cornell’s new financial aid policy using two representative income and asset levels:
Estimated endowed 2009-10 annual cost of attendance: $52,414
| Old Policy |
New Policy |
|
|---|---|---|
$50,000 annual family income, $35,000 savings |
||
| Parent/student contributions | $7,000 | $2,320 |
| Work study | $1,800 | $1,800 |
| Grant aid | $38,114 | $48,294 |
| Student loans | $5,500 | $0 |
| Loans after four years | $22,000 | $0 |
$120,000 annual family income |
||
| Parent/student contributions | $23,000 | $23,000 |
| Work study | $1,800 | $1,800 |
| Grant aid | $21,614 | $24,614 |
| Student loans | $6,000 | $3,000 |
| Loans after four years | $24,000 | $12,000 |
9. What size gift is needed to endow a scholarship? What funding opportunities are available?
Endowed scholarships can be as large as a donor’s resources and generosity will allow. Endowments make a powerful impact over time, increasing in value each year as a result of investment returns. Endowed scholarship gifts are awarded on the basis of student need, and donors may direct their gift to a specific student, college, or area of study. All endowed scholarship donors will receive a profile of their student recipient each year.
Selected Giving Opportunities
A gift of $1 million fully supports one student beginning with the first year in which the gift is made. As the endowment grows over time, its impact will increase by assisting more students.
A $500,000 endowed gift provides annual support to one student every year at an amount that is equivalent to the average grant award Cornell offers in its student financial aid packages.
An endowed gift of $100,000 provides partial support for one Cornell student every year.
The name you choose for your scholarship may be your own, your family’s, a respected teacher’s, a much loved relative’s or friend’s, or a son’s or daughter’s. An endowed scholarship becomes a lasting tribute to the person whose name it bears and can always be augmented. In some families, adding to a scholarship fund established years ago becomes a multigenerational tradition. Scholarships can be directed to students in one college or be available to any student at Cornell.
10. How can I support current needs?
You may also choose to support scholarships by making a gift to the Cornell Annual Fund for Student Aid or by establishing a term scholarship. The Cornell Annual Fund for Student Aid represents one of Cornell’s highest priorities and serves as a critical and immediate source of funding for student aid across the university. Gifts of all sizes are welcome. Term scholarships can be created with a gift of $10,000 or more and provide support for one student for one year. Term scholarships are awarded on the basis of student need, and donors may not restrict or direct their gift to a specific student, college, or area of study. All term scholarship donors will receive a profile of their student recipient for one year.
11. Who at Cornell can I contact for more information?
Numerous staff are happy to answer your questions as the campaign moves forward. Please feel free to contact:
Charlie Phlegar
Vice President for Alumni Affairs and Development
607.255.5142
cdp25@cornell.edu
Laura Toy
Associate Vice President for Alumni Affairs
and Development
607.255.3950
llt1@cornell.edu
