Cautious Optimism about 529 Plans

Despite the recent economic roller coaster, many experts argue that investing in a 529 plan is still a good long-term strategy for college savings.

Independent investment research firm Morningstar Inc.’s sixth annual survey of the best and worst 529 college-savings plans provides great news for Virginians. Specifically, Morningstar named both the Virginia Education Savings Trust (Virginia College Savings Plan Board) and the Virginia CollegeAmerica 529 Savings Plan (American Funds) to its list of the Top 5 Best 529 Plans.

Morningstar’s report does urge caution though, saying that investors must not only be mindful when selecting a 529 plan, but that they need to keep track of its performance, fees, and investment options.

For more information, visit The Roanoke Times.

Scholarship Questions Answered

We recently asked SCHEV staff member, Tierney McAuley, to respond to questions about scholarships.

 

SCHEV: How does a scholarship differ from other forms of financial aid? 

Tierney: A scholarship is different from some forms of financial aid in that it is considered to be gift aid—money that does not have to be repaid.  Scholarships are similar to grants, but unlike most grants, scholarships may not require that students complete a FAFSA.  Instead, students may be asked to write essays on certain topics that are significant to the organization, submit personal statements, and/or provide recommendation letters.  There are some scholarships that, if received, require students to work in a certain location or for a specific employer. If such requirements are not met, the student may be asked to pay back the funds.

 

SCHEV: What types of scholarships are available to Virginia students? 

Tierney: There are several types of scholarships available to all students that are awarded based on merit (academics, sports, etc.), financial need, sociological factors (race, gender, etc.), and programs of study.  There are also scholarships awarded through credit unions/banks, certain employers, and places of worship.  There are even scholarships awarded based on specific physical characteristics (left-handed, height, etc.) and to single parents.  Some scholarships available to Virginia students only include Brown v. Board of Education, Granville P. Meade, Lee-Jackson, and Robert C. Byrd, just to name a few.  

 

SCHEV: Where can students find more information about scholarship opportunities? 

Tierney: I would recommend that students seek information about scholarships through their high school guidance office, their institution’s admissions or financial aid office, their academic program office, and the internet. I recommend students check out www.finaid.org, www.fastweb.com, www.collegetoolkit.com, www.schev.edu, and their institution’s website.       

 

SCHEV: If a student plans on applying for a scholarship, should he or she still fill out the FAFSA? 

Tierney: Absolutely!  I would encourage all students to complete a FAFSA no matter what.  Even if they think they may not receive any grants, they can always decline any financial aid that has to be repaid.  As I always tell students, “It’s better to be safe than sorry.” 

 

SCHEV: What advice can you offer students considering applying for scholarships? 

Tierney: Apply for as many scholarships as possible and pay attention to deadlines.  The more free money, the better!  During these difficult economic times, I think it is best that students take advantage of scholarships to help them pay for their education.  

 

Tierney is SCHEV’s GEAR UP scholarship administrator.  Her background is in Financial Aid and Scholarships.  She previously worked at Virginia Commonwealth University as a Financial Aid Program Specialist and later served as Scholarship Administrator.

Have you been to see the Wizard?

On March 11, Virginia’s Community Colleges (VCCS) unveiled a new online tool for career and higher education planning: the Virginia Education Wizard,  (www.vawizard.org) a one-stop, online resource that brings together information about careers, curriculum and financial assistance.

Users can visit the Wizard to get tailored information about where they are in their career journey and create a path that will get them to future goals:
• Prospective students can identify career paths; curriculum choices, including potential transfers to four-year institutions; and financial assistance.
• Current students can track their current job credentials or associate’s degree paths and plan for transfers to complete bachelor’s degrees.
• Experienced workers can explore new careers, and learn about required education or certification tools, and enroll in Virginia’s Community Colleges.

First-time users build a personal profile that enables them to build a tailored experience, based on their career interests or selected degree programs.

For more information on the Virginia Wizard, view the factsheet or  visit the VCCS website.