Good WaPo article explaining how colleges divvy merit aid

[Jane in NC]

Many parents have commented in recent times on how certain colleges no longer offer merit aid, only need based aid. This Washington Post article explains how an LAC (Ursinus) uses "enrollment management" to lure top students with offers of merit aid. Parents of high school students should find this to be interesting.

 

Another article in the Post echoes another of our discussions: the surprise of the EFC. Here is a passage:

 

"I recommend a one-third rule, where one-third of projected costs will be paid from past income [savings], one-third from current income and financial aid and one-third from future income [loans]," said Mark Kantrowitz, a financial aid expert and publisher of the Web sites FinAid.org and Fastweb.com.

 

There is, in fact, variation in how colleges calculate a family's fair share of college expenses. Asher's group estimates a family with an annual income of $120,000 will be asked to contribute about $16,000 a year toward Harvard or Yale, $33,000 toward Amherst or Swarthmore and $39,000 toward Duke.

 

An example of the famous Black Box of financial aid!

 

The entire article can be found here.

[Kareni]

These are good articles, Jane, that reflect our daughter's financial aid experience.

 

I particularly like this line:

 

""The issue that I deal with most is that there is often a gap -- or chasm -- between what families believe is their need and what formulas proclaim," said Sally Rubenstone, a senior adviser at the college admissions Web site College Confidential."

 

It's a good reason to try and figure out early what your family's EFC (estimated financial contribution) might be.

 

Regards,

Kareni

[TravelingChris]

Yes, and it explains why the EFC is absolutely not affordable for people like us and many others. We live in a high cost part of the country. We can't afford to buy a house in the area we live in. While we have a little savings, it is less than they expect with our income but our income was tens of thousands less just a few years ago. Then we have the fact that I am a disabled person not depending on government aid or any other disability program. I don't have future earnings. I was at my garden club lunch where almost all of the other members have kids my age. Their experiences of going all the time to the doctors mirror mine. They have retired because of health issues but I am supposed to take out loans???? If our last child doesn't get merit aid, we will be looking at colleges overseas that are less expensive. And yes, they aren't cheap but currently our EFC is 44K. I can't think of what it will be when dh gets a 1.4 % raise for a few years. Realize too that we aren't guaranteed any such income after 2011 when he might be downsized. Then what? He may get a good job and we can afford to pay or he might not get a job and we are left with an income less than half what it is now.

[K-FL]

Same here w/the High Cost area--not only is the real estate high, but groceries, insurances, gas, & utilities too. When folks see our address, they assume we're rich. Add to the fact is that we have high debt. You may get some additional aid if you have medical debt or on-going expenses, but bad investments---"Too Bad!"