My son is currently reviewing aid at 4 -5 private colleges he was accepted to. He is currently strongly leaning toward Hamilton College. (I am almost certain this will be his final choice). I have a few questions I am hoping someone can answer. Hamilton has offered him a large need-based grant and they clearly are meeting our full need. Oberlin, Bard, Ithaca, and Ursinus have offered him both need based grant aid and scholarships that also are substantial. Two of the colleges indicate the scholarships are renewable and two do not. Does that mean the grant aid could change each year? Also, should I clarify with the two colleges that did not confirm the scholarships are renewable that they will be, in fact, available each year? Finally, should my son bother applying for outside scholarships available through our school or will it only reduce the financial aid he is currently offered at these schools?
I know that Hamilton indicates they meet full need. I guess I thought Oberlin committed to do the same, but am now not sure they do since their aid is a combination of grant and scholarship aid?
Any grants based on pure Financial Aid (no merit) can vary by year based on income.
Yes.
At Most schools the FA will be adjusted by the outside scholarship amounts. Some will at least allow that money to fulfill the student funding component. Contact the schools to ask.
Any need-based scholarships and grants are reviewed each year by colleges. Renewability is a misnomer. There’s no guarantee of the amount of aid your son will receive each year after his first year, even for colleges that claim the aid is “renewable”. The amount of aid in subsequent years will depend on family income as well as the college’s financial aid budget, even though colleges are likely to prioritize meeting the financial needs of their current students. In the current environment with the uncertain effect of COVID-19 will have on colleges’ finances, students and their families should take into account of colleges’ own finances when deciding on which college to attend, for those students who applied for financial aid or who may apply for financial aid in later years.
Both grants and scholarships can either be need-based or merit-based, so unless you are referring to a specific grant or scholarship, it’s a distinction without a difference.
And to the point of renewability- there are lots of factors to consider. Number of students in your family in college at the same time (so if you have an older kid who is graduating in 2021…), a “change in circumstance”, usually thought of as a job loss- but keep in mind that if a severance package includes accrued vacation days, a portion of an annual bonus, etc. this will all show up as ordinary income to a financial aid officer.
Also clarify what GPA (if any) is required to keep the merit portion of the scholarship at the schools where it’s not all need.
Re: stacking outside aid- you need to check. At some colleges, a dollar earned outside replaces the college’s aid so no net benefit.
Thank you everyone for the feedback. The four schools he is looking more closely at are: Hamilton, Bard, Oberlin, and Ursinus. He was waitlisted at 3 others we visited and he really liked, but we can’t even consider those at this point, although there was a reference to COVID 19 and possible openings. We visited Hamilton and Oberlin and liked them first both. I do know that Hamilton has the highest endowment of the accepted schools, and I know that both Bard and Oberlin have struggled financially for various reasons. Other than that, I have no idea how to gauge the financial viability of a college. I thought the Ivy League schools were strong, but recently saw an article that indicated Cornell has a hiring freeze and is canceling salary increases. If they are in trouble, other private schools will be for sure. DS was accepted to several SUNY schools which would cost half as much. I was surprised, though, that Binghamton is only $3,000 less than Hamilton. We want him to go to a private school, but I’m just concerned about sending him somewhere and having to transfer because the money isn’t there the following year, either by a bait and switch tactic or simply by lack of funds due to the Coronavirus Pandemic.
I will follow all of your suggestions and reach out to each school to get my questions about his packages answered.
If the extra $3K for Hamilton isn’t too much of a financial stretch, and that’s your S’s number one choice, it makes sense to choose it. I have not heard of Hamilton playing FA games…and they do meet full need, I think Oberlin is the only other one on your list that also meets full need.
Lastly, although most (maybe all) colleges’ endowments have decreased recently due to the market correction, I believe Hamilton’s was around $900M…that’s probably the highest of the schools on the list too, but you can double check that.
a. Need-based grants may give different amounts in later years based on different family finances shown on later years’ financial aid forms (FAFSA and (if used) CSS Profile or other supplemental forms). Families with volatile financials may see large changes in need-based grants from year to year.
b. Merit scholarship renewal for each year may be contingent on the student meeting a specific college GPA or other conditions. A higher college GPA to renew increases the chance of losing the scholarship.
c. Either of the above may be limited to a certain number of academic years or semesters. A combination of different grants or scholarships may have some with different expiration dates from others.
My point is that need-based awards can be (and are) labeled either grants or scholarships, and merit awards can be (and are) labeled either grants or scholarships. In other words, “grant” does not automatically and only mean a need-based award, and “scholarship” does not automatically and only mean a merit award.
That is correct, and colleges should be including detailed information about each award, including renewability, as part of the award letter. Look at all information included with the award - it should be there.
Ursinus gave specific information about the renewable scholarship. It only requires a 2.0 GPA and is renewable all 4 years. The GPA required seems low, but I’m not complaining about it. I looked for more detail from the other schools regarding whether any of the awards were renewable and couldn’t find anything. If Oberlin and Hamilton are both need based only that could be why. I will look again before contacting the aid offices.
Our son will be attending Bard and we asked point blank whether or not the financial aid fluctuates annually. The director of admission said that unless our financial situation changes, then we can expect the aid to remain the same.