Frequently Asked Questions (College Financial Aid)
Q: What is financial aid?
A: Financial aid is assistance to help families meet financial need , the difference between the total cost of a college and the expected family contribution . By federal law, the primary responsibility for funding college costs rests with the family, insofar as they are able . Paying for college is assumed to be the family's top priority, after basic expenses have been met, but before family vacations, new cars, etc. Financial aid is meant to supplement -- not replace -- the "family contribution".
Q: How can we tell if we are going to be eligible for need-based financial aid?
A: The first place to go is the Net Price Calculator available on every school's admission or financial aid website. You may also want to check the Estimated Family Contribution (EFC) calculator program available at www.finaid.org.
Q: If I make X dollars a year should I even bother applying for aid?
A: If you think there is any chance you could qualify for aid, you should apply. Even if you are only eligible for loans – they will low-interest loans. You, of course, will never know if you are eligible unless you apply.
Q: When are forms due?
A: F AFSA cannot be submitted until January 1 of VI Form year, but should be submitted as soon as possible thereafter. DO NOT WAIT TO COMPLETE YOUR TAXES unless you can do them VERY early. Otherwise, use estimated information. Check each college’s financial aid deadline, and submit well before the first of these. NEVER MISS A DEADLINE! Even being one day late can put you at a disadvantage. The two-part CSS Profile is available athttp://student.collegeboard.org/css-financial-aid-profile after October 1 and can be submitted at any point after you have determined to seek aid from a school requiring the form.
Q: What is the difference between need-based and merit-based aid?
A: Merit-based aid is generally awarded in recognition ofspecial skills, talent and/or academic ability, with littleor no attention to the ability of the student and his/her family to meet educational costs. Need-based aid, as the name implies, is awarded solely based on demonstrated financial need.
Q: How can I find out about merit scholarships?
A: Fastweb at wwww.fastweb.com includes a very helpful scholarship search engine. You should also check with individual schools as well as the College Counseling Office for additional information.
Q: What is the difference between “Federal Methodology” and “Institutional Methodology?”
A: Methodology refers to process by which either the government or individual schools or institutions assess one’s need. Schools often assess or count additional items such as home equity.
Q: If my parents are divorced or separated, what income sources will be considered?
A: This is a very tricky issue and unfortunately the answer varies for every situation, but it is not uncommon for both biological parents’ assets to be required and considered regardless of the particulars of the living arrangements.
Q: What if I’m applying to more colleges than there are spaces on the FAFSA?
A: Y ou are able to place 10 schools on a FAFSA form. List your schoolsalphabetically and NOT in order of preference – 48 hours later you will be able to add new schoolsand re-send the form.
Q: If my child receives need-based aid, won't a merit award just get subtracted from the need-based aid offer?
A: In some cases colleges do subtract the outside award from the whole package, thus reducing loans, the family contribution, as well as grants, while others subtract outside awards from loans and the family contribution only.
Q: What if our family doesn't qualify for need-based aid but isn't prepared to pay the full cost of a private college?
A: Perhaps merit scholarships could help. Also state colleges with a lower price tag should be considered. You should also look into payment plans and options individual schools offer.
Q: What happens if our families’ financial situation changes after we have submitted the forms?
A: You can always update the information you submitted. You should also prepare a letter explaining the changes and submit it directly to the schools.
Q: Does it hurt my chances of admission to apply for aid on my application to college?
A: If a college is need-aware (and most colleges are), a student's financial need may indeed affect the admission decision. In most cases this applies to only a handful of students each year and only those students who are marginal admits.
Q: Should I apply Early Decision if I need financial aid?
A: This is an important question to consider. The key factors are deciding whether it will be important for your family to compare financial aid packages and whether the college “packages” the same for ED and Regular Decision candidates. A call to the aid office is the only way to determine an individual school’s policy.
Q: Do we have to accept all parts of a financial aid award given to us?
A: No. It often happens that families decide they do not wish to accept some or all of their loans. This decision is fine, but you will of course have to come up with some other way to pay for this portion and it is very likely that the interest rate on the loans you receive in your package will be at the lowest interest rate possible.
Q: Are there Fee Waivers available for the FAFSA or CSS Profile forms?
A: Yes. Following very specific guidelines on family income, both agencies do grant waivers. Please speak to your college counselor if you have questions about whether you are qualified.
Q: Should I be concerned about the amount of loan in my package?
A: Y es absolutely! Education is an important investment in your future, and you should planto go into debt. However, you also MUST be realistic about how much you can afford to pay back. The average debt loadfor undergraduate study is going way up, so you should not be surprised by $4-5,000 per year in loan. If you are facingmore than that, thinkhard about how much you are likely to make when you graduate, given your probable fields of interest. For instance, a future chemical engineer can probably handle more debt than a future musician. Also, consider whether graduate school is a desired option for the future, which can quickly multiply your debt.
Q: What if one college gives you a significantly better package than one you prefer?
A: First, make sure you are comparing apples to apples. Is each college including all the expenses you will actuallyincur — e.g. tuition, room, board,travel expenses, personal supplies, books, fees?
Call the financialaid office at the collegeyou would like to attend and see if they can meet the other offer. If a college is willing to reconsider, they will expect a copy of the other school’s award letter. A college may agree you have more need, but not have sufficient funds to meet it. Note: Colleges that have a policy of only meeting financial need will NOT match another college’s merit-based award that exceeds your need.
If you appealyour financial aid award in mid-April, you may find that youcannot have a clear answer until after the May 1 replydate. Ask for an extension from the colleges you are still considering; usually, one will be granted forfinancial aid reasons.
Often, students and parents make the mistake of assuming they will come out ahead financially by attending a lower cost school. Thisis obviously true if you do not qualify for financial aid. However, if you have significant need, it may make littleor no difference. At times, higher cost collegesmay actually give you the best “package”, since they may have more funds available for distribution. Since the family contribution is determined following federal guidelines, it shouldvary significantly only if one collegerequires supplemental information, such as the CSS PROFILE. Hence, aid eligibility generally goes up with the cost of the college.