Evaluating Your Financial Aid Packages
Your financial aid award package is a
very important factor in deciding your
college choice--but do not let it completely dominate
your decision making. If there is little difference between
the financial aid offers made by your target colleges,
you should make your decision based
on your interest level in the school and how well each school meets
your needs.
When financial aid packages are substantially different from one
another, you should sit down to do a careful evaluation
of the offers being made. Some basic points you will want to consider:
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Package structure--Do
not jump to conclusions about your grant
aid. Just because one school offers more grant aid than another, it
does not mean it is offering the best package for you. Add up the
total amount of self-help aid (loans, work-study) offered
by each school. Compare the ratio between grants and loans. You
may be able to graduate from a higher cost school with
less debt than if you attend a lower cost school depending on how the package is
structured.
-
Expected Family Contribution--Compare any "gaps"
or unmet need left by packages
awarded by colleges. Compare the Expected Family Contribution
for each school--a college could offer a substantial amount of
gift aid, counterbalanced by a high EFC. If
your family needs to borrow money to meet a high EFC figure,
you could have significant debt to repay after graduation.
-
Budget--How realistic is your budget for college and does it reflect
the reality of the financial aid packages being offered by target
schools? If your budget estimate is low, then you will probably
have to borrow money to help cover expenses. An estimation of your income taxes
is helpful. Waiting to file your financial aid form until after you receive your
tax return may cause you to miss aid deadlines.
-
Loan terms--Carefully compare the terms associated with self-help aid
such as loans. Have your parents or counselors helped you evaluate
loan amounts, interest rates, payment schedules, early payment
penalties and the length of the loan. Look for the best combination of terms
for self-help aid.
-
Carryover--Investigate whether your financial aid awards carry over into
the next three years of college. Many schools reserve
most financial aid funds for incoming freshmen. So, your first
year might look great in terms of the amount of aid that is awarded.
However, the next 3 years of college life could be financed differently--less
by grant aid, and more by self-help aid.
-
Negotiations--Be willing to negotiate with financial aid offices about the
financial aid package they offer you. Many colleges are
recruiting students to attend their schools, and may be willing to negotiate
the terms of your financial aid package. In particular, some students
with excellent academic credentials may be in a better position to alter the terms of their award package.
Be sure to ask
financial aid officers if you can expect comparable aid for all four years.
-
Matching offers--Colleges will never promise to change terms, but most of them are now open to honest, above board discussions and negotiations
about college cost and financial aid packaging. Don't be reluctant
to inform one school of what another school is offering you. Many
financial aid offices are willing to look at other aid packages
to determine if any changes might be possible in their own.
Remember that financial aid is ONLY ONE aspect of college
selection. Do not discount your emotional attachment to a particular
school, or give up on the best academic program just because it
costs too much. If a school meets all of your criteria for attending,
it could be worthwhile to make a larger investment in that education.
In other words, are you willing to pay more to attend one school
than another?
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