Five Big Financial Aid Lies: one page article

[creekland]

MicheleinMN,

 

Don't be too hard on yourself. The % really is meaningless. I really researched these. DS got into some really good schools and with the %'s posted we really thought they were possible.

 

Unfortunately, the consider huge parent loans (that we won't take out) as part of their "financial aid package" and therefore it counts toward their % of need met. I mean we're talking like $27,000/year! And this is with a son who got good need-based AND merit aid.

 

Kimm in WA

 

Was this similar to your EFC? Remember, no school can offer any sort of federal financial aid down below your EFC. The best that can happen is loans if you can't outright pay it. Well, maybe that's second best. The best are the schools that will give COLLEGE grants/scholarships that go below the EFC.

 

Parent loans can be used to meet an EFC. Federal loans are often included in % need met, but there are some "no loan" need-met schools. They are often difficult to get in to as many students try.

[Kimm in WA]

No, our EFC is around 4700. Today we got another school's "offer"... $29K in parent loans! :glare: Of course they did offer grants and merit aid too, but REALLY!?

 

Kimm in WA

[JennifersLost]

Once again, I need to thank you ladies.

 

I came on tonight because we keep getting mail from the colleges that accepted ds, want him in their honors' programs, offered him scholarships....and that he still can't afford to attend.

 

It is so hard to walk away. I was thinking tonight, "Maybe we could swing it..."

 

So it was very helpful to come here and read about how the merit scholarships don't even cover as much as you think they will as tuition goes up each year, and that if a student slips under that magic GPA (by taking a difficult course - isn't the point to be challenged!?!) they could lose it all and have to leave the school half way.

 

I'm ready to be open and honest about the finances. We are a family of 6 living on less than $60,000 per year. Our FAFSA was $22,000. After scholarships, my ds' costs would have been right around $20,000 to $22,000 at each college. For at least four years we will have two kids in school at the same time. Tell me how that's supposed to work!

 

Here's our alternate plan:

 

Ds will take two years of CC classes and make the most of it. The cost - $3,000 per year. He'll pay half, we'll pay half. He lives at home for free.

 

The second two years he'll go to the regional (Provincial) university. The cost there - tuition, room and board - is about $15,000 per year. We'll pay half, he'll pay half.

 

Total cost of his BA - $36,000. Probably $40,000 with books and expenses.

 

That is so much more reasonable than the alternative.

 

In my extended family, all the people who did the CC/transfer route out-earn the 4 year private university graduates by far, anyway, so I know for a fact this path is not going to be a detriment to my son.

 

If people can afford the 4 year university costs, great. What we need is a revolution in the thinking that those who choose the more cost-effective route are to be pitied or looked down on. One thing that homeschooling has taught me is that the student's attitude and desire to learn ranks highest in predictors of good outcomes. A motivated student will learn what he or she needs to know to succeed, no matter where they go.

[Ruth in CA]

http://www.usnews.com/education/blogs/college-cash-101/2010/04/06/5-big-financial-aid-lies?s_cid=related-links:TOP

 

 

I too have wondered about number of merit scholars who manage to keep the scholarship all four years. (The fifth "lie" in the article. Or, maybe it's more of a don't ask-don't tell data point.)

 

I'm one of those who did manage to keep my merit scholarship all four years. It meant having to constantly keep an eye on my GPA, but it can be done--even if dealing with major culture shock one's freshman year, as I was.

[Dana]

One thing that homeschooling has taught me is that the student's attitude and desire to learn ranks highest in predictors of good outcomes. A motivated student will learn what he or she needs to know to succeed, no matter where they go.

 

This is going to be very important to remember! And it is so true.

 

I appreciate these threads and I hope that I won't end up completely shocked when we're looking at colleges. Thanks for sharing your story.

[creekland]

No, our EFC is around 4700. Today we got another school's "offer"... $29K in parent loans! :glare: Of course they did offer grants and merit aid too, but REALLY!?

 

Kimm in WA

 

 

:grouphug: I sure wouldn't be taking on that much in loans. My boys know they can apply where they like, but finances are going to be an issue. The same thing might happen to them. I don't mind some in loans, but 29K would be near or above my limit for four years much less one.

Edited April 1, 2011 by creekland

[Kimm in WA]

Oh, we aren't taking out the PLUS loans. DS will attend state univ. with relatively good EE program. Thankful for the pretty large grant there that will make the "gap", including our EFC, about $5,000, before any private scholarships (still waiting to hear if he got those). He will get a summer job and possibly work during the school year.

 

We've told our kiddos that our investment in their college was me giving up my income to homeschool them. We've lived frugally for years on one income and just do not have college savings for 4 kiddos.

 

Kimm in WA

[creekland]

Oh, we aren't taking out the PLUS loans. DS will attend state univ. with relatively good EE program. Thankful for the pretty large grant there that will make the "gap", including our EFC, about $5,000, before any private scholarships (still waiting to hear if he got those). He will get a summer job and possibly work during the school year.

 

We've told our kiddos that our investment in their college was me giving up my income to homeschool them. We've lived frugally for years on one income and just do not have college savings for 4 kiddos.

 

Kimm in WA

 

 

That sounds similar to middle son's backup plan. He has two state schools in mind who ought to offer him a fair bit if the privates don't come through with something affordable.

[flyingiguana]

 

If people can afford the 4 year university costs, great. What we need is a revolution in the thinking that those who choose the more cost-effective route are to be pitied or looked down on. One thing that homeschooling has taught me is that the student's attitude and desire to learn ranks highest in predictors of good outcomes. A motivated student will learn what he or she needs to know to succeed, no matter where they go.

 

Back when I was working on my grad degree, I knew several faculty who had started out in cc and still managed to get PhD's and a good job. If a student is motivated, a cc education is no impediment.

 

Also, several of our worst grad students transferred to Harvard, where they were going to work as TA's. They transferred because the big name status appealed to them. The good students were staying put because they knew they were already getting a good education.

[Azalea]

Found this old thread while searching through old posts. This thread meant so much to me that I want to give it a bump for newbies. This was the thread where I finally really got it about college costs. This was a hard lesson to learn, but it needed to happen and I am so thankful to you ladies who were kind enough to talk about money in public. 

[Laurel-in-CA]

Yes, this is one hard lesson when we've set our expectations so high for our home scholars. My dd has only been able to pursue her BFA because she's lived for free with friends for all 4.5 years...and she'll still come out of school with $20K in loans, all hers, no co-signing. She's motivated to job hunt, let me tell you. My ds took one look at the $$ and headed for the community college, where he has had time to take a few exploratory classes and figure out what he wanted before paying the big bucks. Our local CC, a good one, waives fees if your gpa is above a certain level, so it's been *quite* cost-effective. He'll probably transfer to the state school in town next fall with two AAs under his belt and we're hoping for some scholarship $$ with his good gpa. If not, at least the loans will be all his.

 

Now on to the next two kids!!

[dlcricket]

Our two sons received full ride scholarships- tuition, room, board, and books. The oldest didn't make the GPA to keep it his first year. He wrote a letter of appeal explaining some extenuating circumstances, and it was reinstated. He did not lose it again. Our second son kept his GPA high enough to keep the scholarship all four years. Our daughter is a junior and has a full tuition merit scholarship and s keeping the required GPA for it and another scholarship.

[G5052]

Yes, good reminder.  I had forgotten about reading the fine print on the merit scholarships until now. 

 

I had one that required a 3.5 GPA each semester.  But I was putting myself through school and that money made such a difference, so I did it even with double STEM degrees and working.  It was so hard though.

[Mom22ns]

http://www.usnews.com/education/blogs/college-cash-101/2010/04/06/5-big-financial-aid-lies?s_cid=related-links:TOP

 

 

I too have wondered about number of merit scholars who manage to keep the scholarship all four years. (The fifth "lie" in the article. Or, maybe it's more of a don't ask-don't tell data point.)

 

One of the things that made us like ds's first choice college better is that they only require a 3.0 to maintain academic scholarships. On the other hand, the local State U uses a graduated scale. He qualifies for their highest level of scholarship, but it requires a 3.75 to keep! If you get their lower scholarships, they have lower maintenance GPAs, but none as low as 3.0. 

 

Ds has multiple disabilities. While he is gifted and a good student and a hard worker, he will not be a straight A student in college. He should be able to maintain a 3.0 though. At least he stands a fighting chance!

[J-rap]

First, I want to thank everyone for all the information you have provided on this forum!  I've really learned a lot, and appreciate hearing about people's own experiences and how they've handled college thus far.

 

We've really, really lucked out, because there is no way we could have afforded $20,000/year for five children.  (I say $20,000 because that seems to be a typical end amount after typical merit scholarships for a small, private university in our state).  But, one child DID get married young -- :), one decided to pursue her degree in a country where the cost of a small, private university is about 1/10 of what it is here, another one spread it out over so many years and patched it up with so many random scholarships it never felt like a big hit (AND she was able to contribute a lot herself due to semesters off and working, and she lived with an aunt and uncle instead of the dorms, to save money).  Another child has chosen the un-college path for now.  :)  Our last child is the only one doing college the typical way, and she has a great merit scholarship which I DO worry about her meeting grade-wise.  She is purposely starting her freshman year with classes that will ease her in to college academics to give her a better chance.  We'll see how it all plays out.