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<p>Each school will calculate your Estimated Family Contribution (EFC) based on information you supply about your family’s income and assets. “Need” is essentially the difference between Cost of Attendance (COA)–including tuition and fees, room and board, books, travel, and miscellaneous expenses–and EFC, with an additional deduction for the amount the school expects every student to contribute out of term-time and summer earnings, known as Estimated Student Contribution (ESC). “Need” will vary from school to school depending on COA, how they calculate EFC, and the figure they use for ESC. Schools committed to meeting full need are essentially promising that they’ll provide enough in financial aid (grants/scholarships, loans, and work/study jobs) that EFC + ESC + financial aid = full COA for every student. But the exact mix of grants, loans, and work/study can also vary widely by school. Obviously you’re better off financially if there’s a smaller amount of loans in the mix; loans are not “aid,” exactly, they’re just a way of spreading the cost over a longer period. Work/study isn’t “free money,” either; it’s just a guarantee that you’ll be among a group of students getting first crack at certain campus jobs, but you still need to work for it.</p>
<p>If a Michigan resident is admitted to UNC Chapel Hill, that student’s need will be calculated to reflect the cost of OOS tuition. If you’re eligible for need-based aid at the University of Michigan, you’ll likely also be eligible for need-based aid at UNC Chapel Hill, and although the nominal cost of attending UNC is higher, your net cost after FA should be pretty similar to Michigan. Obviously, this makes schools like UNC attractive to OOS applicants. The reason it’s hard for OOS applicants to get in, though, is that (unlike Michigan) UNC puts a strict cap on the number of OOS students it will admit.</p>
<p>UVA’s policy until recently was similar to UNC’s, but they found it too expensive, so they’re no longer committed to meeting full need for OOS students.</p>
<p>Michigan doesn’t currently meet full need for OOS students but is committed to moving toward that goal, and the University’s next capital campaign, which is just about to launch publicly, will make it a priority to bring in the additional financial resources to make that goal a reality. In a sense, then, Michigan and UVA are moving in opposite directions on this question.</p>
<p>Cal seems to have little interest at present in meeting full need for OOS students, seeing them as a “cash cow” to make up in tuition revenue what they’ve lost in state appropriations.</p>