SPECIAL REPORT 50To p Co l l e g e s · 5 Spelman College, Atlanta, GA 4 3 . 2 4 3 . 0 2 , 1 8 6 2,058 7 7 P r i v a t e 1 5 , 9 4 5 6 Hampton University, Hampton, VA 4 2 . 8 4 1

SEPTEMBER 2006 : BLACK ENTERPRISE : WWW.BLACKENTERPRISE.COM74

50To pCo l l e g e sFo rAf r i c a nA m e r i c a n s

Our exc l u s i ve ranking yielded somesurprises and some staples. And thisye a r, after we show you the bestschools, we take a co m p re h e n s i ve lookat how to make college affo rd a b l e.

By Tanisha A. SykesAdditional reporting by Michelle J. Nealy,

Tennille M. Robinson, Tykisha N. Lundy& Stephanie Young

S P EC IA L R E PO R T

PHOTOGRAPH BY HALEY MURPHY : BLACK ENTERPRISE : WWW.BLACKENTERPRISE.COM : SEPTEMBER 2006 75

ADAMS WILL GRADUATE

PRINCETON DEBT-FREE THANKS

TO LOANS TAKENOUT BY HIS

P A R E N T S .

Crunching the N U M B E R S

FOR A KID GROWING UP IN THE INNERc i t y, visiting a college campus can be aneye-opening ex p e r i e n ce. At any give nmoment, you may find yourself on a wind-ing path with large syc a m o res, fallen pinecones, and ivy- cove red buildings, leav i n gbehind a life of loud st reets and ove r-c rowded schools.

The experience was no different for Michael E. Adams, aPrinceton University student, originally from Chicago. “I appliedto the school for an early decision because I went on a tourd u ring the spring of my junior year,” says Adams, a 19-year-oldsophomore studying economics. “I did an Ivy League tour, andPrinceton was one of the friendliest campuses. And it was themost welcoming.”

That wasn’t the only reason Princeton caught Adams’ eye.“It’s great for academics, obviously, and the social life. I don’t feellike you have to be popular or in the social scene to have fun.”There were just 116 African Americans in his freshman class, butthat doesn’t bother Adams in the least: “When there are AfricanAmerican get-togethers, it seems like a lot of people. It’s nothuge, but it’s not minute.”

Choosing the right college is anything but minute. It’s one ofthe most important decisions a young adult can make. How tofinance that education is just as much a concern to many par -ents. To help you make the right choice, B L A C KE N T E R P R I S E o f f e r sour ranking of the 50 Top Colleges for African Americans. In addi-

tion, we’ve included a financing guide in which you’ll find every-thing you need to know about grants, loans, and scholarships.

This year, our team of writers, editors, and researchers updated andimproved the selection process for the list, which was last com-piled in 2004. First, we expanded our pool of survey reviewers,which now includes more than 500 higher education profession-als. These professionals reviewed more than 1,400 schools, where-as previous reviewers were sent a list of schools specific to theirregion. In addition, we conducted the survey online, yielding a bet-ter, faster response.

The new approach—combined with giving more weight tograduation rates and other necessary adjustments to the crite-ria—bumped some longstanding schools off the list. Neverthe-less, all of the top 10 schools returned. Perennials such as Stan-ford and Howard universities, which are lauded for their academicand social environments, continue to do well.

Seventeen schools that made the list this year didn’t appear in2004, including Mills College and Northwestern University. More-house, which had been the top school on the last two listings,slipped 44 spots, from No. 1 to No. 45, primarily because its grad-uation rate fell from 56% to 49% over the last two years. Several ofthe newcomers, such as Dickinson and Babson colleges, have blackgraduation rates of 90% or higher, so schools with rates below 50%were pushed farther down or off the list completely. However,larger HBCUs like Florida A&M University did well, even thoughthey had black graduation rates of less than 50%, because theybenefited from having higher black enrollment numbers.

S PE CIA L R EP O R T 5 0 T OP C OL LEG E S F OR A F RIC A N AM ERI CA N S

To develop the 2006 B E 50 Top Colleges for African

Americans list, we surveyed more than 500 African

American higher education professionals including

presidents, chancellors, and directors of student affairs

for their assessments of the social and academic envi-

ronments for African American students at the nation’s

colleges and universities.

A total of 1,423 colleges met our criteria based on their

status as accredited four-year colleges with African

American student enrollments of at least 3%. In addi-

tion, schools needed to have enrollment data submit-

ted with the U.S. Department of Education. Each school

was rated on a five-point scale from 1 (strongly rec-

ommend) to 5 (strongly don’t recommend).

The schools were sorted into seven categories: his-

torically black colleges and universities, national

u n iversities, national liberal arts colleges, regional uni-

versities in the Northeast and Midwest, regional uni-

versities in the South and West, regional liberal arts

c o lleges in the Northeast and Midwest, and regional lib-

eral arts colleges in the South and West.

The list was derived using the following variables:

■ Black student graduation rate

■ Average survey score for the school’s academic environment

■ Average survey score for the school’s social environment

■ Total black undergraduatee n r o l l m e n t

■ Black undergraduate students as a percentage of total undergraduates (credit for this variable was capped at 50% for H B C Us)

■ Ranking on the 2004 B ETop Colleges list

The criteria was established by BE and Thomas A.

LaVeist, Ph.D., CEO of DayStar Research. The variables

given the heaviest weighting were black graduation

rate, followed by the average academic and social

environment scores.


S PE CIA L R EP O R T 5 0 T OP C OL LEG E S F OR A F RIC A N A M ERI CA N S

SPELMAN OFFERS ITS

STUDENTS ACADEMIC EXCELLENCE AND

C A M A R A D E R I E .

Celebrating its 125th anniversary,Spelman has consistently ranked in thetop five of our listing. “After attending apredominantly white school all of my life,I chose to go to Spelman College for thesocial change,” says Aarica J. Blackett, athird-year economics major. “My senioryear in high school, I was a debutante forthe Links Incorporated. The more andmore I bonded with these girls, the moreI realized how much potential I had tobecome more than what I was.” Morethan 83% of full-time Spelman facultyhold doctoral degrees. In addition, theschool offers rich cultural programs suchas The Sumiko Takahara Japan StudiesProgram, in which students can studyJapanese history and culture.

According to Thomas A. LaVeist, Ph.D.,CEO of DayStar Research and the compile rof the list, the reason for so many changeshas less to do with any one variable thanwith the combination of all of the newadjustments. Several historically black col-leges and universities, such as Johnson C.Smith and Clark Atlanta universities,which had been on the list since its incep-tion in 1999, didn’t make the c u t .

5 0To pCo l l e g e sfo rAf r i c a nA m e r i c a n s

O N C EA G A I N, T H I SI SD U M M YC O P Y being hon-ored. The event, a wcholarwhip fund-rai-

wer held by the Wpelman-MorehouweAlumni Awwociation, haw brought out a

S P E CIA L R EP O RT 5 0 T OP C OL L EG E S F OR A F RIC AN AM ERI CA N S

T o t a l B l a c k T u i t i o n2 0 0 6 Colleges & U n i v e r s i t i e s W e b S o c i a l Academic U n d e r g r a d . Undergrad. Black Grad. Type of I n / O u tR a n k City, State A d d r e s s S c o r e S c o r e E n r o l l m e n t E n r o l l m e n t R a t e S c h o o l of State*

1 Florida A&M University, Tallahassee, FL www.famu.edu 4 4 . 2 4 3 . 8 1 1 , 4 5 0 10,731 4 6 % P u b l i c $ 2 , 9 5 8 / $ 1 4 , 9 4 9

2 Howard University, Washington, DC www.howard.edu 4 3 . 3 4 2 . 6 7 , 1 1 2 5,975 6 2 P r i v a t e 1 2 , 2 9 5

3 North Carolina A&T State Univ., Greensboro, NC www.ncat.edu 4 2 . 0 4 1 . 6 9 , 1 2 1 8,409 4 3 P u b l i c 3 , 1 1 4 / 1 2 , 5 5 6

4 Harvard University, Cambridge, MA www.harvard.edu 3 6 . 4 4 5 . 9 9 , 5 1 9 641 9 7 P r i v a t e 3 2 , 0 9 7

5 Spelman College, Atlanta, GA www.spelman.edu 4 3 . 2 4 3 . 0 2 , 1 8 6 2,058 7 7 P r i v a t e 1 5 , 9 4 5

6 Hampton University, Hampton, VA www.hamptonu.edu 4 2 . 8 4 1 . 5 5 , 3 1 5 4,980 5 4 P r i v a t e 1 4 , 1 8 2

7 Stanford University, Stanford, CA www.stanford.edu 3 5 . 7 4 5 . 4 6 , 5 5 5 698 9 2 P r i v a t e 3 1 , 2 0 0

8 Columbia University, New York, NY www.columbia.edu 3 6 . 2 4 2 . 1 7 , 2 3 3 511 9 0 P r i v a t e 3 3 , 2 4 6

9 University of Pennsylvania, Philadelphia, PA www.upenn.edu 3 6 . 8 4 3 . 6 1 1 , 9 5 8 790 9 0 P r i v a t e 3 2 , 3 6 4

1 0 Wesleyan University, Middletown, CT w w w . w e s l e y a n . e d u 3 8 . 6 4 7 . 1 2 , 7 7 7 1 9 0 9 0 P r i v a t e 3 2 , 9 7 6

1 1 Dickinson College, Carlisle, PA w w w . d i c k i n s o n . e d u 3 8 . 3 4 3 . 3 2 , 3 2 1 8 8 1 0 0 P r i v a t e 3 2 , 1 2 0

1 2 Wellesley College, Wellesley, MA w w w . w e l l e s l e y . e d u 3 8 . 0 4 2 . 0 2 , 2 8 9 1 3 5 9 5 P r i v a t e 3 1 , 3 4 8

1 3 Amherst College, Amherst, MA w w w . a m h e r s t . e d u 3 8 . 9 4 5 . 6 1 , 6 4 0 1 4 8 9 1 P r i v a t e 3 2 , 3 9 5

1 4 Duke University, Durham, NC w w w . d u k e . e d u 3 4 . 7 4 3 . 1 6 , 3 0 1 6 8 2 8 6 P r i v a t e 3 1 , 4 2 0

1 5 Smith College, Northampton, MA w w w . s m i t h . e d u 4 3 . 3 4 3 . 3 2 , 6 9 2 1 5 3 9 5 P r i v a t e 3 0 , 7 5 4

1 6 Barnard College, New York, NY w w w . b a r n a r d . e d u 3 8 . 6 4 0 . 0 2 , 2 8 7 1 1 2 1 0 0 P r i v a t e 3 0 , 6 7 6

1 7 Tennessee State University, Nashville, TN w w w . t n s t a t e . e d u 4 0 . 0 3 9 . 6 7 , 2 5 7 5 , 8 9 6 4 7 P u b l i c 4 , 4 1 4 / 1 3 , 7 2 6

1 8 Georgia State University, Atlanta, GA w w w . g s u . e d u 3 5 . 2 3 4 . 2 1 9 , 8 8 9 6 , 7 6 5 4 8 P u b l i c 4 , 4 6 4 / 1 5 , 3 7 8

1 9 Brown University, Providence, RI w w w . b r o w n . e d u 3 6 . 7 4 3 . 5 6 , 0 1 4 3 8 3 9 3 P r i v a t e 3 2 , 9 7 4

2 0 Yale University, New Haven, CT w w w . y a l e . e d u 3 4 . 2 4 5 . 8 5 , 3 1 9 4 1 3 9 2 P r i v a t e 3 1 , 4 6 0

2 1 Georgetown University, Washington, DC w w w . g e o r g e t o w n . e d u 3 6 . 6 4 2 . 6 6 , 5 2 2 4 2 4 8 5 P r i v a t e 3 2 , 0 2 4

2 2 Wake Forest University, Winston-Salem, NC w w w . w f u . e d u 4 0 . 0 4 2 . 9 4 , 1 2 8 2 4 9 8 9 P r i v a t e 3 0 , 2 1 0

2 3 Babson College, Wellesley, MA w w w . b a b s o n . e d u 3 8 . 3 3 7 . 1 1 , 6 9 7 5 6 1 0 0 P r i v a t e 3 0 , 4 9 6

2 4 W i l l i a m s College, Williamstown, MA w w w . w i l l i a m s . e d u 3 7 . 5 4 3 . 8 1 , 9 9 1 1 9 2 8 6 P r i v a t e 3 1 , 5 4 8

2 5 Florida State University, Tallahassee, FL w w w . f s u . e d u 3 5 . 2 3 5 . 5 3 0 , 3 7 3 3 , 6 0 7 6 8 P u b l i c 3 , 2 0 8 / 1 6 , 3 4 0

2 6 Cornell University, Ithaca, NY w w w . c o r n e l l . e d u 3 1 . 2 4 1 . 5 1 3 , 6 2 5 6 3 4 8 8 P r i v a t e 3 1 , 4 6 7

2 7 Prairie View A&M University, Prairie View, TX w w w . p v a m u . e d u 3 8 . 8 3 8 . 8 6 , 3 2 4 5 , 7 9 5 4 6 P u b l i c 4 , 9 0 6 / 1 3 , 1 8 6

2 8 Jackson State University, Jackson, MS w w w . j s u m s . e d u 4 0 . 0 3 8 . 5 6 , 6 0 5 6 , 3 8 8 4 0 P u b l i c 3 , 9 6 4 / 8 , 8 7 2

2 9 Oberlin College, Oberlin, OH w w w . o b e r l i n . e d u 4 1 . 1 4 7 . 8 2 , 8 3 7 1 7 5 7 8 P r i v a t e 3 2 , 7 2 4

3 0 North Carolina Central University, Durham, NC w w w . n c c u . e d u 3 8 . 1 4 0 . 0 6 , 0 2 8 5 , 1 8 2 5 0 P u b l i c 3 , 7 7 8 / 1 3 , 5 2 2

3 1 Mills College, Oakland, CA w w w . m i l l s . e d u 4 2 . 0 4 3 . 3 7 6 2 6 8 8 9 P r i v a t e 2 9 , 9 9 0

3 2 University of North Carolina, Chapel Hill, NC w w w . u n c . e d u 3 7 . 6 4 0 . 0 1 6 , 5 2 5 1 , 7 9 4 7 0 P u b l i c 4 , 6 1 3 / 1 8 , 4 1 1

3 3 Grinnell College, Grinnell, IA w w w . g r i n n e l l . e d u 3 8 . 3 4 4 . 0 1 , 5 5 6 6 1 9 1 P r i v a t e 2 7 , 0 6 0

3 4 Morgan State University, Baltimore, MD w w w . m o r g a n . e d u 4 0 . 4 3 8 . 8 6 , 2 4 3 5 , 7 8 2 3 9 P u b l i c 6 , 1 1 0 / 1 3 , 5 2 0

3 5 University of Virginia, Charlottesville, VA w w w . v i r g i n i a . e d u 3 0 . 6 4 1 . 9 1 4 , 1 2 9 1 , 1 9 3 8 7 P u b l i c 7 , 3 7 0 / 2 4 , 2 9 0

3 6 Mount Holyoke College, South Hadley, MA w w w . m t h o l y o k e . e d u 4 1 . 3 4 5 . 0 2 , 1 4 3 8 8 8 2 P r i v a t e 3 2 , 5 9 8

3 7 Emory University, Atlanta, GA w w w . e m o r y . e d u 3 8 . 6 4 2 . 1 6 , 3 4 6 5 8 5 7 8 P r i v a t e 3 0 , 7 9 4

3 8 Princeton University, Princeton, N J w w w . p r i n c e t o n . e d u 3 2 . 8 4 4 . 4 4 , 6 7 8 3 8 5 9 0 P r i v a t e 3 1 , 4 5 0

3 9 Swarthmore College, Swarthmore, PA w w w . s w a r t h m o r e . e d u 3 8 . 6 4 8 . 6 1 , 4 7 4 9 6 8 2 P r i v a t e 3 1 , 5 1 6

4 0 University of Michigan, Ann Arbor, MI w w w . u m i c h . e d u 3 7 . 1 4 2 . 5 2 4 , 8 2 8 1 , 8 7 5 6 9 P u b l i c 9 , 2 1 3 / 2 7 , 6 0 1

4 1 Temple University, Philadelphia, PA w w w . t e m p l e . e d u 3 7 . 3 3 7 . 3 2 3 , 4 2 9 4 , 6 6 6 5 3 P u b l i c 9 , 6 4 0 / 1 7 , 2 3 6

4 2 Washington University, St. Louis, MO w w w . w u s t l . e d u 3 3 . 7 3 6 . 3 7 , 3 5 0 6 9 1 9 0 P r i v a t e 3 2 , 0 4 2

4 3 Davidson College, Davidson, NC w w w . d a v i d s o n . e d u 3 1 . 4 4 4 . 3 1 , 7 1 4 1 0 7 9 1 P r i v a t e 2 8 , 6 6 7

4 4 Simmons College, Boston, MA w w w . s i m m o n s . e d u 3 7 . 5 4 2 . 0 1 , 8 7 4 1 2 1 8 8 P r i v a t e 2 4 , 8 8 0

4 5 Morehouse College, Atlanta, GA w w w . m o r e h o u s e . e d u 4 1 . 5 4 2 . 6 2 , 8 9 1 2 , 7 3 1 4 9 P r i v a t e 1 6 , 0 1 6

4 6 Johns Hopkins University, Baltimore, MD w w w . j h u . e d u 3 5 . 0 4 3 . 0 5 , 7 1 0 4 7 2 8 1 P r i v a t e 3 1 , 6 2 0

4 7 Dartmouth College, Hanover, NH w w w . d a r t m o u t h . e d u 3 0 . 4 4 0 . 4 4 , 0 7 9 2 7 4 9 1 P r i v a t e 3 1 , 7 7 0

4 8 Vassar College, Poughkeepsie, NY w w w . v a s s a r . e d u 3 6 . 7 4 4 . 2 2 , 4 7 5 1 2 8 8 3 P r i v a t e 3 3 , 8 0 0

4 9 Northwestern University, Evanston, IL w w w . n o r t h w e s t e r n . e d u 3 0 . 5 3 8 . 6 9 , 1 1 5 4 9 8 9 0 P r i v a t e 3 1 , 7 8 9

5 0 University of Maryland, College Park, MD w w w . u m d . e d u 3 6 . 7 3 7 . 5 2 5 , 1 4 0 3 , 0 4 7 5 7 P u b l i c 7 , 8 2 1 / 2 0 , 1 4 5

SOURCE: U.S. DEPARTMENT OF EDUCATION; NATIONAL CENTER FOR EDUCATION STATISTICS; THOMAS A. LAVEIST, PH.D. *PRICES FOR FULL-TIME UNDERGRADUATES FOR ACADEMIC YEAR 2005–2006


NOW THAT YOU KNOW THE 50 TOP COLLEGES FORAfrican Americans, how do you go about paying fo rsuch to p - n o tch educat i o n s? This was certainly ani ssue for Michael Adams and his fa m i l y. Befo re Michaele n rolled at Prince ton Unive r s i t y, his parents sat dow nto figure out how they we re going to affo rd the$ 3 1 ,0 0 0 - a -year college educat i o n .


SEPTEMBER 2006 : BLACK ENTERPRISE : WWW.BLACKENTERPRISE.COM : PHOTOGRAPH BY ED WHEELER82

Guide ToCo l l e g eF i n a n c i n g

PHELPS’ STRICT ACADEMIC REGIMENHELPED HIM WIN $150,000IN SCHOLARSHIPS TONORTH CAROLINA A&T.

From the time Christopher Phelps, a senior at N o r t h

C a r o l i n a Agricultural and Technical State University,

was in elementary school, he knew that academic

scholarships were going to be his golden ticket to

a free college education. His parents, Norman and Con-nie Phelps, made sure all three of their sons excelled acad-emically every school year. “We did not have a college fundestablished for our boys. We kept our sons on a strict acad-emic regimen,” says Norman. “They knew that school, com-munity service, and leadership activities were the priority.”

During his junior year in high school, Christopher, who wonmore than $150,000 in scholarships, spent at least one hourevery day researching and filling out college applications.The Phelps family required that each child mail off at leastone scholarship application a week. In fact, the other twobrothers, Norman and Calvin, received more than $350,000in scholarships. For Christopher, who boasted a 4.2 gradepoint average in high school and averaged five to 10 hours ofcommunity service a week, finding scholarships to apply forwas easy.

In all, Christopher won 13 scholarships from various orga-nizations including Alpha Kappa Alpha. With time, effort,and a little knowledge about where to look, your child canattend college for free, too.



Direct &F F E L P L U S

L o a n s

—

Cost of attendance minus additional

financial aid

6 . 1 %

—

None specified

U n s u b s i d i z e dStafford

L o a n

$ 2 , 6 2 5

$ 1 8 , 5 0 0

5 . 3 %

Six months

10–30 years

S u b s i d i z e dStafford

L o a n

$ 2 , 6 2 5

$ 8 , 5 0 0

5 . 3 %

Six months

10–30 years

Perkins L o a n

—

$4,000 for undergraduate students

$6,000 for graduate students

5 . 0 %

Nine months

Up to 10 years

Min. amount

Max. amount

Interest rate

Grace period

Repayment

H e re is a bre a kd own of the fe d e ral loans:

Yo u rK n ow

L i m i t s

S c h o l a r s h i p s

SOURCE:: U.S. DEPARTMENT OF EDUCATION FEDERAL STUDENT AID

N OW THAT YOU KNOW THE 50 TO PCOLLEGES FO R African Americans, howdo you go about paying for such to p -n o tch educat i o n s? This was ce r t a i n l yan issue for Michael Adams and his fa m-i l y. Befo re Michael enrolled at Prince to nU n i ve r s i t y, his parents sat down to fig-u re out how they we re going to affo rdthe $31,0 0 0 - a -year college educat i o n .

“We worked out a budget. My salary goes to paying his school-ing and his sister’ school loans,” says Karen Adams, while her hus-band, Edward, covers the household bills. “We were sendingMichael to private high school, so we couldn’t really save any-thing,” Karen explains.

To prevent students from graduating with thousands of dol-lars in debt, Princeton funds education primarily through grantsand offers loans only to parents. Karen admits that she was ini-tially surprised by the school’s “Graduate Debt Free” promise, “butthe way they have it set up, and how they handle financial aidcompared to other schools, is pretty good,” she says.

The Adamses took out $80,000 in loans to divide over fouryears. They make a monthly payment of $628 because Princetondoesn’t allow parents to defer payment.

While Michael was still in middle school, the Adamses paid offtheir home using money from Karen’s 403(b) in preparation forhis private schooling. “I know you’re not supposed to do that, butI knew I would pay myself back,” Karen says.

Although using retirement money to pay for your child’s edu-cation is unwise, many families are forced to be creative with their


The key to scholarship success is taking the time to fill out

applications completely. Marianne Ragins, founder of TheScholarship Workshop (w w w . s c h o l a r s h i p w o r k s h o p . c o m) , a neducational and consulting service that gives presentations oncollege topics, suggests creating a scholarship box to hold allapplication materials.

In the scholarship box, students should arrange the applica-tions to their top 15 scholarships according to deadline. Here arethe other components:■ Student activity list This is a list of all the things the stud e n thas done from the ninth through the 12th grades. It shouldstate any awards, honors, and participation in academic contests.■ Official transcripts The student should request five to 10copies. High schools have different criteria for obtaining thisdocument, so students should visit their guidance counselor forh e l p .■ E s s a y s Most scholarships require essays. Ragins suggeststhat students complete two basic essays: one that describeswho he or she is and another that describes future career goals. ■ Recommendation letters Students should ask for recom-mendation letters at least two months prior to the applicationdeadline. Ask people who have worked closely with the studentand can give a strong recommendation about his or her characterand work ethic.

The National Center for Education Statistics reports that

there are 750,000 scholarships earmarked annually

for qualified students, totaling $1.2 billion. So how do youfind them? According to Gen and Kelly Tanabe, founders ofSuperCollege.com and authors of Get Into Any College a n d G e tFree Cash for College (SuperCollege L.L.C.; $16.95 and $22.95),it’s a matter of doing your homework.

“Most students search for scholarships on the Internet andthink that they are done. This is a huge mistake,” says Gen. “We’vediscovered scholarships in the dusty collection of books at ourlibrary, in newspaper announcements, and on a supermarketshopping bag.” Try these places to find scholarships:■ S c h o o l High school students should visit their guidance coun-selor to discuss financial aid. Students should think about theirfamily’s background, the type of college they want to attend, andspecial interests that make them eligible for certain scholarships.■ The community Call all the local clubs, organizations, unions,and fraternities and sororities. Some organizations include localNAACP chapters, Boys & Girls Clubs of America, and the UrbanLeague.■ The library Try scholarship directories such as P e t e r s o n ’ sScholarships, Grants & Prizes 2006 (Thomson Peterson’s Guides;$32) and The Scholarship Search: A Guide to Winning Free Moneyfor College and More (iUniverse Inc.; $9.95).

The Scholarship B ox St r i k i n g G o l d

When used wisely, loans can be an effective method of pay-

ing for college. Use this guide to determine whether a

loan will be beneficial to you.

Federal Perkins Loans are available to part-time or full-timeundergraduate and graduate students with great financial need,although Federal Pell Grant recipients receive top prio r i t y .

The loan amount is determined by your financial need and theschool’s available funds. Schools receive financial aid funds annu-ally from the U.S. Department of Education. When all availablefunds have been distributed, no more are given for that acade-mic year. This is why it is important to submit your Free Appli-cation for Federal Student Aid (FAFSA) early.

With a subsidized Stafford Loan, the Department of Edu-cation pays the interest while the student is in school, for sixmonths after he or she leaves school, and during a deferment peri-od. Eligible students can borrow a Direct Loan or a F e d e r a l

Family Education Loan (FFEL) to cover some or all of theirneed. Direct Loans are borrowed from and must be repaid to theDepartment of Education, while FFEL loans are borrowed fromand must be repaid to private lenders. Depending on which pro-gram the school participates in, students may receive a DirectLoan, an FFEL Loan, or both.

With an unsubsidized Stafford Loan, the student is respon-sible for paying interest from the time the loan is disbursed

The Le n d i n g Tre eRe s o u rce sWE B S I T E S

w w w . f a s t w e b . c o m

w w w . c o l l e g e b o a r d . o r g

w w w . s c h o l a r s h i p w o r k s h o p . c o m

w w w . f i n a i d . o r g

B O O K S

Beckham’s Guide to Scholarships for Black and Minority

S t u d e n t s by Barry Beckham

(Beckham Publications Group Inc.; $17.95)

College Board Scholarship Handbook 2007

(Henry Holt & Co. Inc.; $27.95)

Scholarships for African-American Students

by Peterson’s (Peterson’s Guides; $14.95)

The Everything Paying for College Book: Grants, Loans,

Scholarships, and Financial Aid—All You Need to Fund

Higher Education by Nathan Brown and

Sheryle A. Proper (Adams Media Corp.; $14.95)

O R G A N I Z A T I O N S

NAACP (w w w . n a a c p . o r g)

National Urban League (w w w . n u l . o r g)

Elks Club (w w w . e l k s . o r g)

American Red Cross (w w w . r e d c r o s s . o r g)

When used wisely, loans can be an

effective method of paying for col-

lege. Use this guide to determine

whether a loan will be beneficial to

y o u .

Federal Perkins Loans are available topart-time or full-time undergraduate andgraduate students with great financial need,although Federal Pell Grant recipientsreceive top prio r i t y .

The loan amount is determined by yourfinancial need and the school’s availablefunds. Schools receive financial aid fundsannually from the U.S. Department of Edu-cation. When all available funds havebeen distributed, no more are given forthat academic year. This is why it is impor-tant to submit your Free Application forFederal Student Aid (FAFSA) early.

With a subsidized Stafford Loan,the Department of Education pays theinterest while the student is in school, forsix months after he or she leaves school,and during a deferment period. Eligiblestudents can borrow a Direct Loan or aFederal Family Education Loan

( F F E L ) to cover some or all of their need.Direct Loans are borrowed from and mustbe repaid to the Department of Educa-tion, while FFEL loans are borrowed fromand must be repaid to private lenders.Depending on which program the schoolparticipates in, students may receive aDirect Loan, an FFEL Loan, or both.

With an unsubsidized Stafford Loan,the student is responsible for paying inter-est from the time the loan is disburseduntil it is paid in full. This loan is availableonly to part-time or full-time studentswithout financial need. Students canreceive a subsidized loan and an unsubsi-dized loan for the same enrollment periodas long as the total does not exceed theannual loan limit, which is $18,500, depend-ing on the grade level.

A Direct Parent Loan for Under-

graduate Students (PLUS) is subsidizedby the Department of Education. Parentsmust fill out the loan application form aswell as a promissory note, which lists spe-cific conditions, such as interest rates, graceperiods, and repayment plans. Keep thisdocument handy as you may need to referto it throughout the course of the loan. Theschool will distribute the loan application,process the loan, and distribute the funds.

An FFEL PLUS Loan is subsidized bya lender or guaranty agency—an orga-

2/3AD

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With no repayment required, grants can greatly offset the

cost of a college education. The U.S. Department of Edu-

cation estimates that in 2007, Federal Student Aid (FSA)

programs will distribute $12.7 billion to fund Federal Pell

Grants, $770.9 million for Federal Supplemental Educa-

tional Opportunity Grants (FSEOG), and $980.4 million for

the Federal Work-Study Program.

Students should keep the following in mind when applying:■ Be mindful of deadlines. You could be penalized if your

application is late.

■ Turn in all requested documents. “If we’ve asked for it,

we need it. We’re not just trying to be nosy. We want the

information to make an award,” says Jean Farnsworth,

associate director of financial aid for Emory University.

■ Take some personal responsibility. Know how to apply

for aid and be an active and informed participant. The goal

is to understand your package and be able to talk about it.

“It’s much easier to help a student that is aware than for us

to help a student that says, ‘I don’t know, my parents do

t h a t ,’” Farnsworth says. “Students need to be a part of the

p r o c e s s . ”

■ Know your financial aid counselor. During your first few

weeks, stop by to introduce yourself. Don’t be afraid to visit

the office when you are not having an issue. When there is

a problem, remain courteous. And if you don’t understand,

ask for further clarification.

■ Don’t let costs be a deterrent. If you really want to go to

a high-cost school, apply for it. But also apply for financial

aid and do it before the deadline. In addition, apply to

other schools that may be more affordable so that when you

get your acceptance letters and financial aid letters, you can

review your options.

Getting the most out of financial aid

“If I had not been awarded grant

money,” says Emory University senior

Christopher Williams, “I would be

attending school elsewhere, no ques-

tions asked.” The 21-year-old Columbia,South Carolina, native chose to pursue adegree in accounting and finance atEmory’s Goizueta Business School.

With more than $29,000 in institutionalfunding and $2,000 from federal work-study, nearly 80% of Williams’ financialaid package is need-based aid. The restis a small, yet helpful, group of scholar-ships and loans. Emory’s tuition for the2006–2007 school year is $32,100, whilethe total costs are estimated at $44,844.

According to Jean Farnsworth, Emory’sassociate director of financial aid, 14% ofthe 1,890 aid applicants for the 2004–2005school year were black. “All of our aidawarded is need-based,” she says. “Emory wants students whoare qualified to come. The school does not want money to be thedeterrent.”

The Free Application for Federal Student Aid (FAFSA) is usedby nearly all colleges and universities in conjunction with the U.S.Department of Education to distribute aid to students based onfinancial need. Filled out yearly, the information students reporton their FAFSA is used to calculate their family’s financial strengthbased on their income and assets.

Unlike FAFSA, the CSS/Financial Aid PROFILE—the CollegeBoard’s aid application service, used by more than 600 schools andscholarship programs—requests information about home equity

and also makes allowances for things such as debt against thehome, private school tuition for a younger sibling, and medicalexpenses. For example, a family of four that earns $50,000, ownsa home, and has some equity is different financially from a fam-ily of four that makes $50,000 and rents.

With financial aid, Williams has only to pay for his food, books,transportation, and personal expenses. He takes on this responsi-bility himself, to lessen the burden on his parents, through an on-campus federal work-study, a job with the student newspaper,and by cutting hair in the lobby of his residence. “I do this so I don’thave to ask my parents for money all the time,” he says. “They’vedone more than enough with just raising me.”

EMORY G R A N T E DWILLIAMS ANE D U C A T I O NWORTH $29,000.

S P E CIA L R EP O R T 5 0 T OP C OL L EG E S F OR A F RIC AN AM ERI CA N S

G rant Me A Wi s h

■ Have your child take the SAT early. S i n c e

there are more merit awards than need-based

awards, students have to take the SAT seriously.

Most money is given out on a first-come, first-

serve basis, so the earlier your child takes the

SAT, the better the chance to receive an award.

■ Send your child to the school’s summer pro-

g r a m . Some colleges offer high school students

summer enrichment programs prior to admit-

tance. It’s a great way for the student to get to

know faculty and financial aid administrators and

become a more appealing candidate.

■ Know the types of aid prospective colleges

o f f e r. When visiting a campus, stop by the

financial aid office. Also search the financial

aid section of the school’s Website, call and

request information, or speak to a financial aid

c o u n s e l o r .

■ Be clear about your financial situation.

“Schools want to see how financially savvy

you are,” says Sterling Laylock, the Adamses’

Atlanta-based financial adviser. “At some uni-

versities, parents must answer hundreds of

questions that are at the discretion of the

school.” Those questions, which include the

cost of your mortgage, allocation of invest-

ments, and make and model of your car, can

weigh heavily on the type of financial aid you

r e c e i v e .

If you start early, a good place to begin is with a savings plan. No mat-

ter which plan you choose, keep it in your name so you control the money.

Also, if the money is in the child’s name, it may make him or her less eli-

gible for aid.

Here’s a quick breakdown of your options:

■ The 529 Plan is an attractive savings vehicle because the money

grows tax-free and withdrawals used for college expenses are not

taxed. “Most of the 529 plans offer tax credit to their residents. How-

ever, if your state doesn’t have a 529 plan, you may participate with

a n o t h e r state that does have a plan, but you won’t get the tax cred-

it,” says Vicki Brackens, a financial planner with MetLife in Syracuse,

New York. However, she does advise everyone to seek tax advice

before choosing the plan.

■ The Coverdell Education Savings Account, formerly known as the

Education IRA, allows you to save up to $2,000 a year tax-deferred.

What’s great about the account is that you can use it for elementary

and secondary school as well as college. Unfortunately, these funds are

considered student assets, so when financial aid is calculated, it could

reduce your child’s aid.

■ State prepaid tuition programs allow you to lock in current tuition rates

for future use. The tuition rate is an in-state public college rate, so if your

child attends a private school, be prepared to pay the difference.

■ The Uniform Gifts to Minors/Uniform Transfers to Minors Acts a l l o w

you to give your child $11,000 without getting hit with taxes. It’s more

flexible in the way it can be used, but at age 18, your child assumes com-

plete responsibility, so be careful.

For more ways to make college affordable, log on to w w w . b l a c k

e n t e rp r i s e . c o m / p a y f o r c o l l e g e. B E

Here are some practical things you can do to offset the high cost of college:

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Fa m i l yF i n a n c i n g

For parents Karen and Derek Adams,

paying for their daughter’s college

education was less about choice than

about duty. A native of Trinidad,

Derek was sent by his parents to

Howard University to get an educa-

tion and pursue a better life. It would

make perfect sense that he would

do the same for his only child, Brit-

tany, a 20-year-old junior at Hamp-

ton University.

“When she was born, I started puttingmoney away every paycheck through sav-ings bonds. At the time, I worked at a bank, so they allowed me tomake automatic deductions,” says Derek, a 45-year-old senior vicepresident of information systems and technology at PRG Schultz.

His plan was simple: first save $50 per paycheck, then $100, andeventually up to $150 per paycheck. He did that diligently from

1986 to 2003, saving $54,000 in after-tax dollars. “You’d be amazedat the power of compounding,” he says. Derek kept the moneyin savings bonds for years before transferring it into a 529 plan.

Even if you didn’t start saving early like the Adamses, there arecreative ways to finance your child’s education.

THE ADAMSESUSED SAVINGSBONDS TO SENDBRITTANY TOH A M P T O N .

S P EC IA L R E P OR T 5 0 T OP C OL LE G E S F OR AF RI CA N A M E RI CA NS

SPECIAL REPORT 50To p Co l l e g e s · 5 Spelman College, Atlanta, GA 4 3 . 2 4 3 . 0 2 , 1 8 6 2,058 7 7 P r i v a t e 1 5 , 9 4 5 6 Hampton University, Hampton, VA 4 2 . 8 4 1

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