Student scholarships are an institutional priority because more than ninety percent (90%) of our students receive financial assistance.
Scholarship funds ensure that (1) we can attract and retain an academically talented student body; and (2) that financial need is not a barrier to entry and graduation. As tuition costs continue to outpace inflation, family income and federal tuition assistance, John Carroll has seen a steady increase in the need for scholarship aid.
There are two types of scholarships at John Carroll, Operating Scholarships and Endowed Scholarships. The primary differences between the two are (1) cost and (2) the permanency offered by an endowed fund.
All scholarship funds can be named after the donor or in honor of an individual. In addition, both types can be restricted and provide support to students based on the following criteria: academic achievement, area of study, financial need, geography, and student diversity. Scholarships are awarded to students by John Carroll University administrators, faculty and scholarship award committees. Qualified recipients are selected from a pool of students who meet particular scholarship award criteria.
An Endowed Scholarship buys into the University endowment and is invested in perpetuity. Only the interest from the fund is used for scholarship awards; the principal remains intact. The current endowed spending rate approved by the University’s Board of Directors is five percent (5%). As a result, a $100,000 endowed scholarship fund earns $5,000 a year. The earned income is used for scholarship awards. An Endowed Scholarship fund requires a minimum investment of $100,000.
An Operating Scholarship, a non-endowed fund, uses the capital donated in its entirety and does not generate interest over time. When an operating scholarship fund has been spent according to the donor’s wishes, the fund and the scholarship cease to exist. An Operating Scholarship fund requires a minimum investment of $25,000.
Pursuant to IRS regulations, donors are prohibited from selecting scholarship award recipients. To make a charitable gift, donors must give up all rights to the property or cash given.