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Full-tuition scholarships, half-tuition scholarships, and financial aid packages free of student loans continue to be unveiled at institutions across the country.  While it may be too late for many students to alter their college application plans, if you are still looking for colleges for 2009, or if you happen to have applied to one of these schools, you may find the following information useful.  This week, The Chronicle of Higher Education profiled several significant scholarship programs private, community, and state colleges are launching or expanding for incoming students in 2009.

Northern Illinois University recently announced the Huskie Advantage, a program that will ensure that all incoming freshmen eligible for Federal Pell Grants will receive enough financial aid to meet the full cost of tuition.  Similarly, Montgomery County Community College in Pennsylvania is raising money to provide larger scholarships to students who receive a small Pell Grant or narrowly miss the cutoff for Pell eligibility.

The University of Pennsylvania will be eliminating student loans from the financial aid packages of all students this fall.  It's the latest in a string of well-endowed private colleges to put forward generous institutional aid for its students.  The Sage Colleges of New York are also following suit, promising to offer aid to meet new students' full financial need in the next academic year.

Two private colleges in Georgia and Minnesota aren't eliminating loans, but they are drastically reducing the cost of college for many applicants.  Agnes Scott College in Georgia is offering scholarships and grants to nearly halve the cost of attendance for all recipients of the Georgia Hope Scholarship, as well as an additional $3,000 grant for first-year students.  Saint Mary's University of Minnesota offers students with family incomes of under $100,000 financial aid packages that will reduce the cost of attendance to the average price of a Big Ten school.  For the neediest 25 percent of students, St. Mary's will provide all of this aid institutionally, allowing students to use federal student financial aid to cover much of the rest of their college costs.

As college affordability continues to be a major issue for many Americans, more states and colleges are implementing policies to save students money.  Three recently unveiled programs tackle different aspects of the college cost dilemma confronting different groups of students, parents, and graduates.

A partnership between the University System of New Hampshire and businesses in the state could pay up to $8,000 of New Hampshire residents' student loan debt.  The program is set to take effect this fall and the University System of New Hampshire hopes to recruit at least 30-40 businesses to participate in its first year.  Students will be eligible to receive payments of $1,600 per year for the first two years of employment and $2,400 per year for the next two if they graduate from a New Hampshire college and remain in the state to work for four years.

Meanwhile, in New York, one college is formalizing a program to save students one year of loan debt by offering a clear three-year path to graduation.  Hartwick College has long offered students the option of taking more classes per semester and graduating in 3 years, but now the practice has been turned into an official academic program for high-performing students.  Students must have a strong high school GPA to qualify, and will be expected to take 18 credits in the fall and spring, plus four credits during a J-term each year, finishing with 120 credits in three years.

Three Nebraska state colleges are also trying to minimize student loan debt, but are targeting a group of low-income students to receive more university grant funding.  Wayne State College, Peru State College, and Chadron State College have announced plans to pay freshman year tuition and fees for all students eligible to receive Pell Grants.  Students would still be responsible for room, board, and books, but removing the worry of paying tuition and fees may encourage more low-income students to attend college in Nebraska, as well as enable them to stay enrolled past the first year.

Paying for college can be a struggle.  Nobody wants to repay student loans forever, not everybody is going to land a full-tuition scholarship, and federal student financial aid seldom takes care of all college costs.  If you're a parent or relative looking ahead to cover college costs for a child, finding scholarships is a great step now, but you may also want to consider college savings plans.

Read below for information on 529 savings plans, which are one of the most popular and diverse options for college savings.  If this is not for you, check back tomorrow for more information on other savings options.

529 Savings Plans While 529 plans have sustained average losses of 21 percent in the last year, they can still be a good idea, especially if you choose your plan carefully and have plenty of time to save.  Many 529 plans allow you to move your savings into a much more conservative portfolio when the student nears college, an option they're sure to publicize based on the recent behavior of the stock market.  While there are limits on how many changes can be made to a 529 plan per year, the plans are otherwise quite flexible and varied, so it's easy to find one that works for your situation. Plus, 529 plans can be taken out in the parent's name, rather than the student's, so they will only minimally affect a student's financial aid eligibility.

Additionally, contribution limits are high, income limits are nonexistent, minimum contribution requirements tend to be low, and many states offer a variety of incentives for residents who contribute to their plans.  As an added bonus, many 529 plans can accept contributions from anybody anywhere, not just the people named on the account, and several programs have been created to take advantage of this.  For example, some plans allow a portion of credit card purchases or purchases at certain stores to go towards a particular student's 529 plan.

Prepaid Tuition Savings Plans If you're hesitant about sticking money for college in the stock market with uncertain returns, another type of 529 plan is also gaining popularity.  Prepaid tuition plans allow families to contribute a fixed amount now in exchange for a certain portion of tuition being covered in the future.  Many states do this for their state colleges and universities, and the Independent 529 plan, which is accepted by over 200 private colleges, also fixes contributions to portions of future tuition.  Both of these varieties eliminate worries about tuition inflation, though if tuition actually goes down between now and when the student starts college, a prepaid plan might not be the most lucrative option.

The Down Side 529 plans do have drawbacks and limitations.  Money must be spent on education, and the expenses that qualify are limited to undergraduate tuition, fees, educational expenses like books, and now computers. However, if the student is enrolled at least half-time, money from a 529 plan can also go towards room and board, so even if your student earns a full-tuition scholarship, it's possible to still take advantage of 529 savings.  Money must stay in a plan for at least 3 years, so if you're saving for a college sophomore, you're out of luck with these.  However, you can transfer the unused portion of a 529 plan to another family member without incurring the heavy withdrawal penalties, and it may also be possible to use the funds towards graduate or professional school.

Plans also vary from state to state, so your state's plan might not have the best benefits for you, or might not offer as sweet a deal in terms of tax breaks or low fees as the next state over offers its residents.  Luckily, you can shop around among a variety of plans, including ones offered by several other states.

529 plans are not the only college saving option, though they remain the most popular and perhaps the most well-known.  Check back tomorrow for information on the rest of the pack.

Continuing our theme from yesterday, today's blog post centers on more options for saving for college.  Yesterday, we discussed 529 plans, popular college savings vehicles that have been battered by recent financial troubles.  If you're considering saving for college but are not sold on a 529 plan, the most common alternatives are discussed below.

Coverdell ESA. Coverdell Education Savings Accounts are similar to 529 plans in most respects, but do have their own benefits and drawbacks. Rather than being sold by a state, they are sold by banks and brokerages, which can charge their own management fees. Because there aren't any state ties, there aren't any residency limitations, though there also aren't any state tax breaks for enrolling in a Coverdell ESA.

Coverdell accounts allow more flexible investment options and unlimited changes to investments. They can also be used to pay for high school and elementary school expenses, in addition to college costs. Otherwise, the expenses Coverdell and 529 plans can be used for are roughly the same: tuition and fees, books and supplies, room and board if over half-time, and other qualified educational expenses.

One major limitation to the Coverdell ESA is the $2,000 annual contribution cap. This is the limit per account holder, not per contributor. Additionally, individuals must have an adjusted gross income of $110,000 or below to contribute, and $95,000 or below to contribute the full $2,000. Coverdell accounts are held in the beneficiary's name, so they can hurt the student on the FAFSA. They also must be used or cashed out by the time the beneficiary turns 30, and they go to the beneficiary no matter what, while 529 plans can be given back to the parent in charge of the account if the student chooses not to go to college.

Roth IRA. The Roth IRA, typically used as a retirement account, can also be used to save for school. As long as you're withdrawing contributions, rather than earnings, there is no penalty if you are using the money from your IRA for educational expenses. However, a college savings plan might be the better way to go if you're setting up an account specifically for your student (especially since contributions to a Roth IRA must come from income the beneficiary earned from working), and dipping into your retirement funds to pay for college is widely regarded as a less than ideal choice by financial experts. But if you choose to take it, the option is there.

UTMA. The Uniform Transfer to Minors Act allows assets to be given as gifts to minors without the establishment of a trust. While the options explored up to this point have been savings accounts or investments, UTMA covers everything, including property. An adult manages these assets in a custodial account until the owner reaches the age of 18 or 21, depending on the state. In the meantime, the funds in the account can be used to benefit the child, including taking care of educational expenses. Once the owner reaches the age of majority, the assets are theirs to use as they please. This can mean paying for school, or it can mean making less desirable financial choices.  Since these assets belong to the student, they would count against them for student financial aid.

Government Bonds. While typically regarded as the province of grandparents, government savings bonds (Series EE is the most common) are also an option for paying for college. Bonds can be purchased online or at banks, and redeemed later for cash. As opposed to stock market-based savings plans which can lose big during crashes, government bonds are going to continue to grow as long as there's a government to honor them. And if there's no longer a United States government, well, you might have more to worry about than paying for college.

Also, since no rules state that a savings bond must be redeemed for college costs, the money can be used towards paying off student loans, covering college living expenses...or partying it up during spring break in Mexico.

While EE Savings Bonds grow at a steady rate, they do grow very slowly. You're also limited to a purchase of $5,000 per calendar year. Since they're such a safe bet, they can be great gifts for high school students, but a market-based option might be a better way to grow savings and maximize returns for younger children.

Earlier this week, we blogged about the recession making getting into a PhD program more difficult for prospective graduate students.  Prospective undergraduates are also facing a changing admissions landscape, but the picture for them is more complicated. Articles about colleges' admission conundrums have abounded this week as acceptance letters and financial aid notices make their way to anxious high school seniors.

Top schools with big endowments and generous financial aid packages, such as virtually the entire Ivy League, are facing increased applications and some of their lowest admission rates ever.  Meanwhile, other private colleges are admitting more students than last year, and also putting more students on their waiting lists.  Many state colleges and community colleges are also seeing increased interest and jumps in enrollment, and schools with limited resources are forced to turn away a larger percentage of applicants.

All of this adds up to a lot of uncertainty for students, and for colleges trying to create next year's freshman class.  Many sources are saying it also means increased flexibility for some students in terms of negotiating admission or financial aid at their top choice schools.

Since schools are hurting financially and admissions offices are as nervous as students this year about their decisions, students who are able to pay full freight (either out-of-pocket or through a generous outside scholarship award) may face an advantage getting off the wait list, since several schools admit to considering ability to pay when deciding whether to admit waitlisted students. Students who have received an acceptance letter from their dream school, but have been offered larger amounts of institutional aid from other colleges may also have more options this year. Students in this boat may want to let their favorite private colleges know about their dilemma to see if they can get a slightly better offer.  Many schools may be willing to drop a couple thousand extra dollars on you if it will secure your tuition payment.

If you're planning on attending college, chances are you're also planning on one day graduating.  Depending on which school you choose, getting out in six years or less could be anything from a long-shot to a near certain bet.  A new study has been published by the American Enterprise Institute comparing graduation rates among colleges based on selectivity ratings as part of an overall push for more accountability and transparency in higher education.  In addition to discussing the gaps in graduation rates among schools, the study also lists some of the best and worst performers in each category by name.  If you're a high school junior or senior just beginning to compare colleges, this could be good information to have.

Overall, the data show that about 53 percent of first-time college students at four-year universities graduate from the school they enrolled in as freshmen with six years. The study does not include non-traditional students or transfer students.  Not surprisingly, students at the most selective schools, such as elite private colleges, were among the most likely to graduate from the school at which they initially enrolled.  Six-year graduation rates at individual schools ranged from the single digits to nearly 100 percent across the whole spectrum of schools, with the most competitive category graduating nearly 88 percent of students on average, and the least competitive schools graduating only 35 percent of students.

Graduation rates also varied greatly within selectivity categories.  Two schools in similar locations with similar ratings could have vastly different graduation rates.  This is where the study becomes particularly useful for students choosing between schools.  If you have a roughly equal chance of getting into two colleges, and one graduates a significantly larger percentage of students then the other, it's not hard to imagine that having this information might influence your decision of which school to apply to or attend.  You can read more over at Inside Higher Ed, which also includes a link to the full study. Along with things like available financial aid and quality of on-campus housing, graduation rates are definitely something to consider incorporating into your criteria for your college search.

On August 1, the new GI Bill will kick in, bringing with it increased education benefits for people who have served in the military since 2001. At least in theory.

The new GI Bill covers an undergraduate student's full tuition and fees at any four-year state college anywhere in the country, which is a more generous benefit than the veteran aid students received under the old GI Bill. Eligible students will also receive an additional monthly housing stipend and, thanks to the recently approved HEA Technical Corrections legislation, these benefits won't be counted as income for purposes of determining federal student financial aid eligibility.

The GI Bill also includes a new program that gives veterans benefits at private colleges and allows schools to match federal VA benefits for their students. More than 1,100 private colleges signed up to participate in the Yellow Ribbon Program, which should allow veterans to attend a larger number of institutes of higher education at little cost.

However, the formula for determining benefits under the Yellow Ribbon Program has been mired in controversy since its announcement, and as the deadline for the GI Bill to go into effect nears, many people are looking at the wide disparity in Yellow Ribbon benefits nationwide and scratching their heads.

Veterans attending private colleges can receive up to the full amount of tuition and fees at the most expensive public college in the state from the government, with their institution agreeing to assist with additional tuition costs at Yellow Ribbon schools. But the amount the federal government will cover varies widely from state to state, with government benefits ranging from just over $2,000 to just under $40,000, depending on how the department of Veterans Affairs calculated the maximum in-state tuition in each state.

These differences have caused some private schools to limit their Yellow Ribbon participation, meaning many veterans may still be on the hook for most of their college costs if they choose to attend private colleges. The wide variation in benefits also can cause confusion and uncertainty for veterans considering attending private universities but unsure of the financial aid they'll be eligible to receive.

Rising unemployment rates and other symptoms of the ongoing recession continue to drive more people to attend college and look for ways to pay their bills, causing an uptick in state and federal financial aid applications. However, states are also hurting for money to meet financial aid requests and other budget demands. According to the Associated Press, 12 states have made significant cuts to state grant programs so far this year, with additional cuts likely. At least anecdotally, these cuts are already leading to more reliance on student loans, especially among groups that, according to a brief published this week by the College Board, may already be finding themselves overburdened with debt.

This week, the College Board released some new numbers on student debt loads and borrowing habits, culled from the National Postsecondary Student Aid Study, data released every four years by the Department of Education. Students at for-profit colleges are the most likely to borrow (96 to 98 percent graduate with some amount of loan debt), have the largest average debt loads at graduation, and are also some of the poorest college students (students at for-profit schools received 19 percent of the Federal Pell Grants disbursed in 2007-2008 despite making up only 7 percent of the college-going population). With additional sources of need-based aid drying up, these students may find themselves even more burdened with debt.

Students at other types of schools have also had to do more borrowing in recent years, according to the study. A full 59 percent of college students graduate with some amount of student loan debt, including 66 percent of bachelor's degree recipients. While most students took on manageable amounts of debt, 10 percent of students at four-year public schools, 22 percent of students at four-year private colleges, and 25 percent at four-year for-profit colleges borrowed more than $40,000 to attend college.

The average loan debt of undergraduate students in 2007-2008 was $15,123 (this is all students, not graduates), up 11 percent from the last time the survey was conducted. While increases in loan burdens were most modest at four-year state and non-profit colleges, reductions in state grant programs that are often earmarked for students at state colleges or nonprofit private colleges could send these numbers climbing.

You may want to consider statistics on student debt as a factor in your college search, but keep in mind that there are alternatives to borrowing. Scholarship opportunities exist for students at every type of college pursuing many different types of degree programs.

Attending community college is a great way to save money on the first two years of higher education, but for many students, paying for school after they transfer to a four-year college or university can still be difficult. Now, transfer students in Alabama will get help with their last two years of school, thanks to a new state scholarship.

Alabama has launched a new scholarship program for graduates of the state's two-year community and technical colleges that will allow them to receive a bachelor's degree for free. Alabama State University and Alabama A&M will each award 250 two-year full-tuition scholarships starting this fall, with the number of available scholarship awards to double to 500 apiece next year.

Initial funding for the scholarship program comes from the state's Education Trust Fund, and is part of the settlement in the 28-year-old Knight v. Alabama segregation lawsuit.  Knight, the lead plaintiff in the suit, is now a state representative and vows to do what he can to ensure continued funding for the program as long as he's serving in the state legislature.

Initially, 50 students have been awarded the scholarship, but the state is working to identify more eligible students. Students in Alabama who are planning to attend a community college then transfer to one of these two state schools will want to keep this scholarship in mind. Other local, state, and national awards are also available to students who are attending community college and planning to transfer to a four-year college or university.  More information on these and other scholarship opportunities can be found by conducting a free college scholarship search.

The University of Texas has announced plans to withdraw as a sponsor of National Merit, a popular national scholarship program that students qualify for based on standardized test scores. In an effort to focus on providing need-based financial aid, the university will no longer offer scholarships specifically for National Merit Scholars. The University of Texas, which was second only to Harvard University in the number of National Merit Finalists it enrolled, offered qualifying students awards worth up to $13,000 over the course of four years.

Texas is not the first major university system to choose to cease participating in National Merit, a program that offers $2,500 scholarships to high school juniors who do well on the PSAT, with the potential for honorees to receive much larger scholarship awards from partner companies and universities. Other institutions, including the University of California system, have previously chosen to withdraw sponsorship of National Merit, while many other schools have chosen not to offer awards specifically for National Merit winners.

National Merit has previously drawn criticism for its strong emphasis on high PSAT scores (other application materials are considered in selecting finalists, but semifinalists are chosen solely based on test scores). Students from wealthier families who have access to the best high schools and a variety of test preparation resources typically do best on standardized tests, such as the PSAT, which results in scholarship awards like National Merit skewing towards affluent students who need less assistance paying for college.

A University of Texas official cited similar reasoning in the university's decision to stop awarding National Merit Scholarships, stating that only one fourth of students receiving the scholarships typically bothered to apply for federal student financial aid, indicating the vast majority had access to other means of covering their college costs. The students who are most likely to be hurt by the loss of this scholarship opportunity will likely be helped by the increase in need-based financial aid that the university is promising.

University officials stressed that applicants who would have been eligible for this award will still be able to compete for other academic scholarships, and the undergraduate students currently receiving this award will continue to do so for their full four years of eligibility. Still, this announcement is likely to upset some students and to fuel the fires of the ongoing debate over merit-based versus need-based financial aid in colleges and universities.