<p>I have been off of the CC borads for awhile- no kids entering college at this time. I hope all the regular posters are well? You know who you are!</p>
<p>My son is doing well at the state school and my daughter insists/demands that she wants to go to aprivate LAC trying to one up her brother I guess.....that is the latest. I have suggested to all my friends and others that they check out the CC board first before embarking on the college quest. The article below may be of some help to anyone that is thinking of appealing their merit aid offer or a lack thereof.......</p>
<p>(Commentary. John F. Wasik, author of ``The Bear-Proof
Investor,'' is a columnist for Bloomberg News. The opinions
expressed are his own.)
By John Wasik
May 16 (Bloomberg) -- Once you receive a college's financial
aid offer, it's a done deal, right? Not necessarily.
Aid packages can be appealed and enhanced -- even for this
fall. If you think a college hasn't considered your complete
financial situation, it's worth a try.
Stuart Siegel, a certified college planning specialist and
executive director of College Tuition Solutions in Erie,
Pennsylvania, says that while families are awarded fair financial
assistance most of the time, there are times when persistence
pays off'' in improving aid packages.
I had one family where the parents were divorced and the
child received no aid for the first three years while attending
Northwestern University,'' Siegel says. ``The applications from the
parents, though, contained conflicting information and that's why
the student got nothing and wasn't going to be able to afford to
graduate.''
After reworking the aid forms with new information, Siegel
says the student received $17,000 from the college for her senior
year.
Aid Crucial
For many families, gaining significant financial support from
a university is more important than ever because of steadily increasing tuition and other charges. Private U.S. colleges charged an average of $27,516 and public schools $11,354 in the 2004-05 school year for tuition, room and board -- up 5.6 percent and 7.8 percent, respectively, from the previous year -- according to the College Board, a testing and research organization in New York. Due to the increasing scarcity of grants, which don't have to be repaid, loans have become the dominant form of college funding, with more than half of all students relying on them. Alternative private-loan programs grew 43 percent from 2002 to 2004, compared with only a 6 percent increase in grant aid (in inflation-adjusted dollars). The dependence on loans creates an ever-oppressive financial burden after graduation. Students are getting their diplomas with an average of $20,000 in loan and credit-card debt, according to the Illinois CPA Society, a certified public accountants' group.
Appeal Guidelines
The key to an effective appeal for greater financial
assistance from a college is knowing what not to say. Writing a
blistering tirade that calls the aid package grossly unfair or says
that your child is being cheated will be ignored.
Quality of life, personal issues and generally being
emotional will not only get you nowhere,'' says Brian Greenberg, a
certified college counselor and certified public accountant in
Marlton, New Jersey,but it may backfire and color an otherwise
sound reason for appeal.''
Siegel likens an effective aid appeal to preparing a good tax
return. To sweeten the award, you need to document everything in
your favor. Here are some guidelines that may help:
-- Note any extraordinary expenses or change in finances not
detailed in the aid application, such as medical expenses,
disability, job loss, financial support of an elderly relative,
other children in private schools, investment/property losses, a
decline in self-employment or business income, bankruptcy or
anything that has decreased your income or cash flow.
Look at Average Offer
-- Divorce or separation. Parents may not be fully reporting
the lack of support payments from an ex-spouse or true financial
conditions.
-- One-time increase in income. Employees forced to cash in
stock options, inheritances, children receiving life-insurance
proceeds from a parental death and temporary bonuses should be
noted to the aid office. Sometimes these items can be excluded as
sources of income, which may improve your aid offer.
Greenberg says you should also gauge what a college has
historically awarded in total-percentage terms of grants, work-
study and loans. If your offer is less than average for that
school, you should appeal.
You may feel legitimately shortchanged if a school that
traditionally awards 60 percent of assistance in the form of grants
only gives you a package that includes 30 percent grants, Greenberg
adds.
To see individual college-aid profiles, select a college, then
click ``colleges and financial aid'' in the College Board database
at <a href="http://apps.collegeboard.com/search/index.jsp%5B/url%5D">http://apps.collegeboard.com/search/index.jsp</a>.</p>
<pre><code> Leveraging Packages
One of the most successful aid-boosting strategies can be used
</code></pre>
<p>when you have more than one school offering assistance.
<code>For freshman awards, if schools are willing to work with
you, they may ask to see other's aid offers,'' Siegel says.</code>Often
they will closely match the (competing) offer if they want your
child as a student.''
Siegel says one of his clients is a student who was accepted
at Yale, Princeton and Dartmouth universities. Princeton offered
$19,000 a year, Dartmouth $7,500 and Yale nothing. He advised the
family to show Yale the Princeton offer. (He hasn't heard back
yet.)
In your appeal and other aid proposals, document any other
financial reasons why your child should receive a better package.
Send your letter to the university aid office via second-day
airmail and expect a reply within 10 days. If there is no response,
call the office.
Your chances of increasing an aid offer are slim if a college
is lukewarm about matriculating your child, Siegel says. Admitted
students with high test scores, solid essays and good
extracurricular activities get prime attention from admissions and
aid offices.</p>
<pre><code> Getting Help
State schools also are less likely than private or Ivy League
</code></pre>
<p>colleges to grant appeal requests simply because they have less
money.
You can hire a counselor such as Siegel to work on your behalf
(see <a href="http://www.niccp.com%5B/url%5D">http://www.niccp.com</a> for referrals), although Siegel will only
take cases in which he has a high likelihood of garnering a minimum
of $7,500 in aid. Specialists like Siegel will charge a flat fee if
they take you on as a client. Avoid counselors who work on a
percentage basis of the aid granted or make outlandish claims such
as being able to obtain tens of thousands of dollars in
scholarships.
You can always write the appeal letter yourself if you have a
reasonable case and provide documentation. Be prepared for aid
offices to immediately reject your appeal, though.
<code>Nine out of 10 schools say no (to appeals) right away,''
Siegel says,</code>but the squeaky wheel gets the grease.''</p>
<p>--Editors: Ahearn, Henry, West.</p>