Hello Friends,
I am asked many questions about financial aid. Financial aid is a broad term that generally refers to all money flowing out of that office including merit money, loans, grants, scholarships, etc. Most families are intimidated by the financial aid process and their intimidation often results in less money for the family.
As with all purchases, the consumer should be financially savvy about what the bottom line cost is for their chosen college, more so these days than ever before.
Follow this blog over the next few months; click on the suggested links to help you educate yourself before you make your acceptance decisions on May 1. Don't rush your acceptance. Wait to see what you are offered in your financial aid package before you say, "YES!"
Let's start with an easy point. All financial aid decisions or conversations are held in the financial aid office, not admissions. Face-to-face contact with your financial aid officer may "pay off" in the spring. Call now to schedule an appointment. Be respectful, ask good questions, and arrive prepared.
When you meet with financial aid, here is a good question to ask. How does the aid office treat parent loans (PLUS Loans) as an option when figuring how the college will meet your need? If there is an expectation that the parent take out a loan in addition to the student loan, then it is fair to conclude that the schools simply doesn't have the money for significant financial awards.
Students loans may be necessary, but as a simple rule of thumb, students would be wise to keep their loan commitments to less then $20,000 after four or more years of college. Yes, that number is correct. Therefore, ask financial aid what the figure is for student debt upon graduation. Of course, that data is available from many sources; one of the best is .
This last fact is the most important one to remember. The higher a student is in the applicant pool, the greater the chance for more grant assistance. Grants are gifts, no repayment necessary. AS I have stated to you many times, students applying to colleges where they stand above the other applicants is "financial aid leverage." (Note - The Ivy League Colleges and other "little Ivies" do not give merit aid.)
The following are the questions to ask about merit aid.
How many merit awards are available?
What is the highest amount of merit aid offered?
What are the qualifications to receive one of these merit awards?
Merit awards are not based on financial aid. In fact, families with no financial need are receiving much of the merit aid. This is a trend that has been evident during the past two years and is continuing this year.
The above points should give you a few good essential topics to discuss during your late winter, early spring financial aid meeting.
Brenda
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