At dinner last night with the very astute and well read @Blackbelt2b2 , who also happens to be the best boyfriend a D could ever ask for, we discussed the various ways colleges deal with appeals. He has heard of some F/A officers asking students if they are ready to commit NOW, if the aid is adjusted. Somehow this just brought the image if a used car salesman to my mind.
Has anyone actually had this happen? How did it work out ?
Once you commit, what motivation does a school have to increase your award?
It is another thing to ask for reconsideration, stating that you will go to the school if the aid is sufficient…and plan to actually do so!
My understanding is that it would be a “Quid pro Quo” transaction . The school increases the aid in exchange for your commitment. I am assuming if the aid still wasn’t right the student wouldn’t commit. In my mind I see the snazzy banner flying behind the financial aid desk with “Today Only” in big letters.
Some colleges want to “protect their yield”…that is, if they have kids on the waitlist and they have slots to fill, they want those students to definitely attend so they may offer a slot to a waitlist kid if and only if they will commit. They might also do that with certain admitted students to help them increase the yield (or to make sure they have that certain student).
I have seen advice in this forum that students who ask for review of their aid packages should be prepared to tell the college/university in question that it is the first choice, and that they will indeed commit if the package indeed is the most favorable one.
I have no idea if that works.
I would not doubt that it happens, but I’ve yet to run into such scenarios where it’s a blatant deal. For some students, FIrst Choice U costs too much. THey got money to make 2nd Choice U or others schools far more affordable, and parents balk at the additional cost. But if First Choice U can come up with some more money, not necessarily meet the costs, compromises can be made, and yes, a deal of sorts is struck. The more selective colleges will often not negotiate, so discussions have to be done gingerly. But they also understand where it puts some kids, when the costs are so over budget, and if a little bit more of merit money can be thrown that way, they might get a grateful student who really wants to be there.
Thank you all for chiming in. I guess in the end all the parties try to cover their butts! It is best to be clear about the goal when appealing a financial aid offer. Make certain your student is sure about their college choice before going to the wall with the F/A department.
Be very careful about making decisions based on these types of negotiations. Unless the aid package includes renewable scholarships, that extra aid given in year one could easily disappear, and even shrink, in years 2-4. it’s called “front loading,” aka bait and switch.
I’ve read about “side letters” confirming similar treatment in out years (which sounds like a good idea.) Thanks for another good warning.
From what i have seen most fin aid officers won’t negotiate. They are the bean counters in the system and the need packages are given out by formula. You aren’t going to get more than what your need is. They do not assess the students and they often could not care less if you attend or not, and yield is not their concern. It’s admissions that has that on their heads. So merit money can often be a discussion with admissions. Where there is negotiation, it’s when admissions and fin aid are one and the same which is the case with a few schools. Really, fin aid CANNOT give more aid than need, so if a school meets full need, there is little or no discussion unless there is a reason for dispute like the way a business is evaluated or a mistake.
@cptofthehouse I wish things were simply done by a transparent formula. My experience this year does not represent that as a reality. 4 of the 5 top LAC’s D was accepted to (all 100% need met) had very similar family contributions. One however was more than $10,000 higher than any of the others. Some packaged loans others did not.
It all muddies the waters of an already challenging decision. I know I would feel better if things were more fact based rather than negotiated.
Just don’t use the word “negotiate” in any form, as that often shuts doors. The fact of the matter is that if the awards were given by financial aid without admissions being involved, the “bean counters” do go by their own formulas and discussion, negotiation doesn’t cut it. Talk to admissions first and ask what the best approach is. Look at the LAC that offered your student more and find out why you can get $10K more in need based aid from that school, and yes, you can bring it up and show the other schools the offer. If merit was included in the award, then there isn’t much Fin aid can do.
I, too, wish for more transparency, and the NPDs have been a huge help in that regard. Run them for the school your DD wants and for the school that offered more and see what’s going on their. Is it the school formula that is more generous or is something else going on there? Also what is your FAFSA EFC? A school cannot give more financial aid than that EFC and still give out federal funded money like subsidized loans and federal work study. Some schools also have iron clad rules not permitting aid over that EFC amount.