Local Ford dealerships pull out of scholarship program

McALLEN — The automotive industry's financial troubles have spread to Rio Grande Valley students hoping for college scholarships.

Ford and Lincoln-Mercury dealerships throughout the Valley are backing out of the Ford Salute to Education scholarship this year, one of the biggest - if not the biggest - financial gifts given to area students.

Jim Tipton, owner of Tipton Motors in Brownsville, said local dealerships decided to sit out this year because the Ford Motor Co. and its credit division decided not to contribute its share into the scholarship fund. Local dealerships were left to make up the costs themselves, something they couldn't afford.

Valley dealerships have given more than $1 million to students over the past decade or so, plus cars and computers to those students who also won a raffle drawing among scholarship recipients, Tipton said.

"We couldn't fund all those things by ourselves," he said.

The dealerships are waiting for Ford Motor Co. to resume its contribution, Tipton said.

Ford, Chrysler and General Motors have asked Congress for a bailout to avoid bankruptcy. The nation's top three automobile makers have said if they don't receive help now, about 3 million jobs would be lost.

Car dealerships in the San Antonio area started the Salute to Education scholarship program in 1993. The program expanded to other areas throughout the state, as well as California and Florida a few years later, said Cynthia Muñoz, the scholarship's coordinator.

The Rio Grande Valley dealerships joined the program in 1997. Since then, Valley Ford dealers have offered scholarships to about 1,500 students. Students have received anywhere from $400 to $1,000, Muñoz said.

Last year, 160 students from the Valley received scholarships, she said.

Dealerships donate a percentage of the money earned from each new car sold to the fund and the Ford Motor Co. matches that amount, Muñoz said.

San Antonio, Coastal Bend, Victoria and Laredo area dealerships will continue offering the scholarship, she said.

High school counselors and students said they were disappointed to learn that one less scholarship would be available to the Valley. But they said it's just another sign of the times.

"It's going to break the kids' hearts'," said Letty Hernandez, McAllen High School's college specialist.

The Salute to Education scholarship was one of the bigger ones schools throughout the area encouraged students to pursue because of the huge payouts, Hernandez said.

McAllen High School senior Justin Perez said hearing about the scholarship withdrawal made him angry. The 18-year-old said he knew of many students who graduated before him who received money for school and a car or computer.

Justin said he understands the auto industry is suffering financially, but not enough to where it can't offer scholarships to students.

"You see on the news CEOs flying to meetings. It's kind of frustrating when you could be doing something else with that money," he said.

Beatriz Montejano, an 18-year-old senior at Veterans Memorial High School in Mission, said she might have to give up her plans to attend Baylor University next year. Beatriz tried applying for the scholarship online and found out it wasn't offered to Valley students this year. She notified the schools' counselors.

"I was really disappointed," Beatriz said. "That's a lot of money right now I could've used."

Beatriz, who already has been accepted to the university located in Waco, said she is relying on scholarships to pay for school.

She's not giving up on college altogether. Beatriz said she'll continue to look at other scholarships, including a full scholarship offered by the University of Texas-Pan American.

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Jennifer L. Berghom covers education and general assignments for The Monitor. She can be reached at (956) 683-4462.