For Jones Scholars
who graduated from high school in 2010:
General Information
1. Each Jones Scholar is eligible to receive up to a total of $16,000,
based on the Scholar's unmet financial need, to support undergraduate
studies at the college or university of his or her choice. Unmet
need is defined according to the federal guidelines used by all
accredited colleges and universities. If a Scholar has no unmet
need in a given year, the Foundation will not grant a scholarship
for that year. (See attached Appendix of definitions widely used
in the realm of financial aid.)
2. Scholars are expected to attend a four-year college or university
accredited by one of the regional commissions within the six geographic
areas that cover the United States.
3. Generally, Scholars are expected to begin their higher education
with the Fall semester immediately following high school graduation
and continue in consecutive years.
4. Scholars are expected to enroll as full-time students, as defined
by the college or university. Federal standards require that full-time
students complete a minimum of 12 credit hours each semester, or
a total of 24 credit hours for the full college year or its equivalent.
5. It is the Scholar's responsibility to determine what income
tax, if any, is due on his or her scholarship payments (see below:
Taxability of Scholarships.)
6. Scholarship aid cannot be transferred or assigned.
Responsibilities of Scholars
7. Before June 1 following high school graduation, the Scholar
must notify the Foundation that he or she will accept the honor
of designation as a Jones Scholar and send the Foundation a) a copy
of a letter of acceptance from the college or university that he
or she will attend, b) the financial aid notification/award letter,
and c) a completed copy of the Application
for Scholarship Support form.
8. The Scholar must complete the Application for Scholarship Support
form to request scholarship aid from the Foundation toward unmet
financial need and student loans (or, more precisely, toward the
“uncovered amount before loans” reported on the Application
for Scholarship Support.) Houston Endowment will review the application
and notify the student of the dollar amount to be awarded for the
school year. If an award is granted, a check in the approved amount
will be sent to the institution with notice that it is to be applied
toward unmet need and expected student loans.
9. Scholarship support is limited to a maximum of $5,000 per academic
year, but actual granted amounts are based on the determination
of eligible financial need in the manner described in Point 8 above.
Scholars are eligible to apply until they graduate with a bachelor's
degree, exhaust the total award limit of $16,000, or reach the sixth
anniversary of the July 1 immediately following their selection
as Jones Scholars.
10. Before June 1 of each subsequent year, the Scholar must notify
the Foundation of his or her intent to return to the college or
university of record and provide a) a statement of intent to return
to the college or university of record, b) an official transcript,
c) a copy of the financial aid letter for the upcoming enrollment
period, and d) the Application for Scholarship Support.
11. At the end of each fall semester (or its equivalent), the Scholar
must send Houston Endowment a copy of his or her grade report. Official
transcripts are only required at the end of the school year, as
noted in Point 10 above.
12. To transfer to another college or university following a full
academic year, the Scholar must furnish Houston Endowment a copy
of a letter of transfer acceptance from the new institution and
an official transcript before June 1. To transfer at mid-term, the
above items must be furnished by January 1. The Scholar should instruct
the university to return to Houston Endowment any unused portion
of scholarship aid.
Special Circumstances
13. Under special circumstances, and subject to approval by the
Foundation of a Scholar’s written request, a reasonable break
in continuous education may be allowed for pursuit of a service
activity or an educational endeavor that is part of an organized
program of a recognized nonprofit organization or academic institution.
Breaks to pursue employment or engage in business-oriented ventures
(other than internships that earn college credit) are not allowed.
14. Scholarship aid may be canceled at the Foundation’s discretion
if the Scholar does not fulfill the outlined responsibilities or
because of academic failure, lack of academic progress, withdrawal
for other than approved reasons, or upon the request of the Scholar’s
college or university.
15. In the event that illness or disability interrupts progress,
upon written request of the Scholar, accompanied by written verification
from a physician, the Foundation may approve a reasonable break
in continuous education.
Taxability of Scholarships General Rules
16. Scholarship funds are not considered gross income for income
tax purposes if the amount is received as a qualified scholarship
by an individual who is a candidate for a degree at an educational
institution.
o A qualified scholarship includes any amount received by an individual
as a scholarship that the individual can prove is used for qualified
tuition and related expenses.
o Qualified tuition is tuition and fees required for enrollment
or attendance at an educational institution. Related expenses are
fees, books, supplies and equipment required for courses of instruction.
Scholarship funds used for other expenses, such as room and board,
must be included in gross income.
17. Each Scholar is responsible for determining whether scholarship
aid, in whole or in part, must be included in gross income. In other
words, the Scholar is responsible for determining what portion of
the grant was used for qualified tuition and related expenses.
18. Scholars should contact a tax advisor for assistance or see
IRS Publication 970 – Tax Benefits for Education, available
on the IRS web site at: http://www.irs.gov/pub/irs-pdf/p970.pdf.
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Appendix of Definitions
(From: http://www.finaid.org/questions/glossary.phtml#s
FinAid web site copyright © 1994-2010 by FinAid Page, LLC.
All rights reserved. FinAid and the diploma slammer are registered
trademarks and service marks of FinAid Page, LLC.)
Award Letter
An official document issued by a school's financial aid office that
lists all of the financial aid awarded to the student. This letter
provides details on their analysis of your financial need and the
breakdown of your financial aid package according to amount, source
and type of aid. The award letter will include the terms and conditions
for the financial aid and information about the cost of attendance.
You are required to sign a copy of the letter, indicating whether
you accept or decline each source of aid, and return it to the financial
aid office. Some schools call the award letter the "Financial
Aid Notification (FAN)".
Campus-based Aid
Financial aid programs are administered by the university. The federal
government provides the university with a fixed annual allocation,
which is awarded by the financial aid administrator to deserving
students. Such programs include the Perkins Loan, Supplemental Education
Opportunity Grant and Federal Work-Study. Note that there is no
guarantee that every eligible student will receive financial aid
through these programs, because the awards are made from a fixed
pool of money. This is a key difference between the campus-based
loan programs and the Direct Loan Program. Do not confuse the two,
even though both loans are issued through the schools.
College Work-Study (CWS)
College Work-Study is simply a part time job. This term is sometimes
erroneously used to refer to the Federal Work-Study Program.
Cost of Attendance (COA)
(Also known as the cost of education or "budget") The
total amount it should cost the student to go to school, including
tuition and fees, room and board, allowances for books and supplies,
transportation, and personal and incidental expenses. Loan fees,
if applicable, may also be included in the COA. Child care and expenses
for disabilities may also be included at the discretion of the financial
aid administrator. Schools establish different standard budget amounts
for students living on-campus and off-campus, married and unmarried
students and in-state and out-of-state students.
Expected Family Contribution (EFC)
The amount of money that the family is expected to be able to contribute
to the student's education, as determined by the Federal Methodology
need analysis formula approved by Congress. The EFC includes the
parent contribution and the student contribution, and depends on
the student's dependency status, family size, number of family members
in school, taxable and nontaxable income and assets. The difference
between the COA and the EFC is the student's financial need, and
is used in determining the student's eligibility for need-based
financial aid. If you have unusual financial circumstances (such
as high medical expenses, loss of employment or death of a parent)
that may affect your ability to pay for your education, tell your
financial aid administrator (FAA). He or she can adjust the COA
or EFC to compensate. See Professional Judgment.
Federal Work-Study (FWS)
Program providing undergraduate and graduate students with part-time
employment during the school year. The federal government pays a
portion of the student's salary, making it cheaper for departments
and businesses to hire the student. For this reason, work-study
students often find it easier to get a part-time job. Eligibility
for FWS is based on need. Money earned from a FWS job is not counted
as income for the subsequent year's need analysis process.
Financial Aid Package
The complete collection of grants, scholarships, loans and work-study
employment from all sources (federal, state, institutional and private)
offered to a student to enable them to attend the college or university.
Note that unsubsidized Stafford loans and PLUS loans are not considered
part of the financial aid package, since these financing options
are available to the family to help them meet the EFC.
Gift Aid
Financial aid, such as grants and scholarships, which does not need
to be repaid.
Grant
A type of financial aid based on financial need that the student
does not have to repay.
Outside Scholarship
A scholarship that comes from sources other than the school and
the federal or state government.
Parent Loans for Undergraduate Students (PLUS)
Federal loans available to parents of dependent undergraduate students
to help finance the child's education. Parents may borrow up to
the full cost of their children's education, less the amount of
any other financial aid received. PLUS Loans may be used to pay
the EFC. There is a minimal credit check required for the PLUS loan,
so a good credit history is required. Check with your local bank
to see if they participate in the PLUS loan program. If your application
for a PLUS loan is turned down, your child may be eligible to borrow
additional money under the Unsubsidized Stafford Loan program.
Pell Grant
A federal grant that provides funds of up to $5,500 based on the
student's financial need.
Perkins Loan
Formerly the National Direct Student Loan Program, the Perkins Loan
allows students to borrow up to $3,000/year (5 year max) for undergraduate
school and $5,000/year for graduate school (6 year max). The Perkins
Loan has one of the lowest interest rates and is awarded by the
financial aid administrator to students with exceptional financial
need. The student must have applied for a Pell Grant to be eligible.
The interest on the Perkins Loan is subsidized while the student
is in school.
Self Help Aid
Financial aid in the form of loans and student employment. If every
financial aid package is required to include a minimum amount of
self-help aid before any gift aid is granted, that level is known
as the self-help level. For example, the self-help level will be
$8,150 at MIT in 1995-96 (The Tech, March 7, 1995, Vol. 115, No.
9, Page 1). MIT has one of the highest self-help levels of private
colleges and universities, with an average self-help level of around
$5,500 at the more expensive schools.
Stafford Loans
Federal loans that come in two forms, subsidized and unsubsidized.
Subsidized loans are based on need; unsubsidized loans aren't. The
interest on the subsidized Stafford Loan is paid by the federal
government while the student is in school and during the 6 month
grace period. The Subsidized Stafford Loan was formerly known as
the Guaranteed Student Loan (GSL). The Unsubsidized Stafford Loan
may be used to pay the EFC.
Undergraduates may borrow up to $31,000 ($5,500 during the freshman
year, $6,500 during the sophomore year and $7,500 during the third,
fourth and fifth years) no more than $23,000 of which may be subsidized
($3,500 during the freshman year, $4,500 during the sophomore year
and $5,500 during the third, fourth and fifth years) and graduate
students up to $65,500 including any undergraduate Stafford loans
($20,500 per year, no more than $8,500 of which may be subsidized).
The difference between the subsidized loan amount and the unsubsidized
limit may be borrowed by the student as an unsubsidized loan. Higher
unsubsidized Stafford loan limits are available to independent students,
dependent students whose parents were unable to obtain a PLUS Loan
and graduate/professional students. Undergraduates may borrow up
to $57,500 ($9,500 during the freshman year, $10,500 during the
sophomore year and $12,500 during each subsequent year) and graduate
students up to $138,500 including any undergraduate Stafford loans
($20,500 per year). These limits are for subsidized and unsubsidized
loans combined. The amounts of any subsidized loans are still subject
to the lower limits for dependent students. Certain medical school
students may borrow an aggregate amount of $224,000.
State Student Incentive Grants (SSIG)
A state-run financial aid program for state residents. The states
receive matching funds from the Federal government to help them
fund the program.
Subsidized Loan
With a subsidized loan, such as the Perkins Loan or the Subsidized
Stafford Loan, the government pays the interest on the loan while
the student is in school, during the six-month grace period and
during any deferment periods. Subsidized loans are awarded based
on financial need and may not be used to finance the family contribution.
See Stafford Loans for information about subsidized Stafford Loans.
See also Unsubsidized Loan.
Supplemental Education Opportunity Grant
Federal grant program for undergraduate students with exceptional
need. SEOG grants are awarded by the school's financial aid office,
and provide up to $4,000 per year. To qualify, a student must also
be a recipient of a Pell Grant.
Unmet Need
In an ideal world, the Financial Aid Office (FAO) would be able
to provide each student with the full difference between their ability
to pay and the cost of education. Due to budget constraints the
FAO may provide the student with less than the student's need (as
determined by the FAO). This gap is known as the unmet need.
Unsubsidized Loan
A loan for which the government does not pay the interest. The borrower
is responsible for the interest on an unsubsidized loan from the
date the loan is disbursed, even while the student is still in school.
Students may avoid paying the interest while they are in school
by capitalizing the interest, which increases the loan amount. Unsubsidized
loans are not based on financial need and may be used to finance
the family contribution. See Stafford Loans for information about
unsubsidized Stafford Loans. See also Subsidized Loan.
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