How consistent does merit aid tend to be in subsequent years?

[Ginevra]

When we receive our acceptances and FA packages, will we know how consistent the original merit offer is going to be? Or is that "guess and hope?" So, for instance, my Net Price numbers make it look as though UD will potentially be financially more feasible than Uni. MDCP. However, by sticker price, UD (OoS) is not feasible at all, and the IST of MD seems like a no-brainer (assuming dd is accepted at both). I feel nervous about how this bodes for the future, because I care a LOT about the Big Picture. I don't want to say yes to the college with an awesome first-year pckg, only to get dropped the next year into sky-high rates.

[Lolly]

Check with the schools. The schools my girls looked at all had first year merit that remained the same year to year... IF you met the academic requirements. Ask what percent of the students keep the aid for four years (at each level of aid). The school dd20b chose has a higher percentage of keeping aid than many of the other schools we looked at because they do not usually take aid away if the student falls below the required gpa listed. Everyone is given a semester's grace to pull back up. Then, their (unwritten) policy is to continue to give the aid $ as long as the student is meeting with their advisor regularly and truly making an effort in their classes. The unwritten part is scary, but the numbers they give back that up. At this point, we now know of several students for whom this is the case, so there is follow through. Other schools, one low gpa and the $ is gone.

[Brenda in MA]

Usually, in our experience, merit aid is offered over 4 years, and the only "catch" is that sometimes there is a GPA requirement. So if the student can maintain the required GPA, then the scholarship continues without regard to your finances.

 

The kind of aid that tends to vary alot is need-based aid. This is based on your FAFSA or Profile form, and if your income varies, then your aid can vary as well. Need-based aid isn't guaranteed from year to year, so if you're getting need-based aid there is some risk that the package may change over the years.

 

Brenda

[Gwen in VA]

Some schools give merit aid as a percent of total tuition. In other words, the dollar value of the merit aid increases each year to keep up with inflation. This is unusual, but it does happen.

 

Most merit aid is given as a set amount that will be renewed each year. Do remember that tuition will increase, usually by a fairly hefty amount (you can find out about the annual rate of tuition increase in recent years by doing some googling on a specific school). In other words, you will most likely end up paying more each year just because the total tuition increases and the merit aid does not keep up with that.

[8filltheheart]

Our ds has some scholarships that are couched in terms of "cost of tuition," so tuition increases increase his award.  He also has some that are set dollar amts.  The awards came with letters detailing the award and conditions.  (all of his do require a certain GPA and are for 4 yrs.)

 

He did have offers from other universities last yr whose scholarships were in terms of only set dollar amts which meant tuition increases increased our costs.

 

 

[Hoggirl]

Aid is the area that tends to shift. As others have said, most merit awards are for four years and continue as long as one meets the GPA (or other - might be Honors College participation in events, etc.) requirements. FA is recalculated each year, however. Additionally, schools can shift the proportion of types of aid around. As an example, one might receive $10,000 in grants, $4,500 in work study, and $5,500 in loans the first year. However, in subsequent years, colleges can reduce the amount of grants and expect students to take on more "self-help." The area of FA is much riskier than merit, particularly if some of the aid package comes in the form of loans.

[creekland]

So far, our experience has been that merit aid has remained the same with keeping the required GPA (though tuition can go up).  FA at my two older boys colleges has kept with our EFC, so as tuition went up, our contribution has kept with what our EFC is.  Youngest son's college told us at Accepted Students Days that they budget for similar aid to kids each additional year.  Time will tell if that really happens, but I'm expecting it to.

 

 

[Guest]

Thank you, all, for such helpful and thorough answers!

[Sunshine State Sue]

As others have said, most merit awards are for four years and continue as long as one meets the GPA requirements.

:iagree:

Ds' merit scholarship GPA requirement is 2.5.  It is printed in black and white at the FA website.  I think I have seen threads about some schools having GPA of 3.5 or 3.8.  :eek: Buyer beware...

 

There is a way to get an idea as well from the common data set for the school.  Google common data set school name. 

In section H2A: Number of Enrolled Students Awarded Non-need-based Scholarships and Grants, note the differences in n) and o) for the freshman vs. all undergrads.  Let me try to attach it for ds' school.  You can see that the number of freshman x 4 < number of undergrads and the average award is slightly less. 

 

HTH!

[Susan in TN]

For all our scholarship offers, it was specifically stated for either one year only, or guaranteed for 4 years with certain GPA and minimum hours/semester requirements.

[J-rap]

The merit scholarships my kids have gotten have always been for a set amount, available every year as long as they meet a certain grade point.

[Carol in Cal.]

Here, too. 

One school offered nothing.

Another offered a first year scholarship and an extra 1000 for filling out the FAFSA, as a one time thing.

Others offered scholarships that were renewable for 4 years if a GPA requirement was maintained. 

 

In each case the terms were laid out specifically in writing.

 

 

[Granny_Weatherwax]

:iagree:

Ds' merit scholarship GPA requirement is 2.5.  It is printed in black and white at the FA website.  I think I have seen threads about some schools having GPA of 3.5 or 3.8.  :eek: Buyer beware...

 

HTH!

 

My DD's college set her GPA at 3.5. Her merit aid award was the top tier of a three tier system.  She dropped below the minimum GPA last year (end of sophomore year) and we were notified that she lost a portion of her scholarship and was dropped to the second tier. She decided to reduce her class load to three courses per semester this year (being a FT student, PT employee and a FT mom is a bit overwhelming for her, hence the drop in GPA) and lost a portion of that.

 

Right now, it is worth it.  She was running herself into the ground last year trying to meet the demands of her roles and we were concerned about her health and well-being.  This semester she is more relaxed and doing well in all three of her courses.  Our concern now is whether or not she will receive any aid for a fifth year, which has become necessary due to her reduction in credits.

 

I realize our situation is nothing like the OP's but it is somewhat relevant to the topic.

[MomatHWTK]

Here are some tips that might help yo udecide:

http://online.wsj.com/articles/mistakes-parents-make-with-financial-aid-1411333024

[Mom22ns]

My DD's college set her GPA at 3.5. Her merit aid award was the top tier of a three tier system.  

 

Our local State U has a 3 tier system with GPA requirements of something like 3.75/3.5/3.25. Ds easily qualified for top tier, but I didn't figure he could maintain the GPA. I asked if you could drop a tier and they told me no, they lose it all. I asked if he could opt to come in at a lower tier - nope again. The system is designed to make sure most kids won't keep the scholarships. The state U is cheap, but this feels like bait and switch to me.

 

The college ds actually plans to attend requires a 3.0 to maintain scholarships and gives a 1 semester grace period as a pp mentioned. Hopefully scholarships there will be maintainable!