<p>On a recent visit to American University, we were told that if the family's income remains about the same, then the FA would be the same each year. They specifically said that aid is not increased to meet increased COA each year. I was surprised by this. Is that typical?</p>
<p>The school I attended for undergrad chose to raise the amount of new-freshman merit scholarships to help make up for the increased COA. All continuing students had to figure it out. </p>
<p>I think that every school probably treats this situation differently. The school I work at gaps with the PLUS loan filling in COA, so as tuition increases we will just increase the PLUS loan to fill that gap. </p>
<p>American University doesn’t guarantee to meet full need…like the vast majority of colleges. </p>
<p>It is not unusual for schools that do not meet full need for all to NOT increase need based aid in subsequent years.</p>
<p>Even schools that do guarantee to meet full need (which usually is defined as how the school defines “need”) tend to reduce or change the financial aid package, all things equal, so that the student has an increasing responsibility to take on more of the costs. That is often reflected in the increased amounts that the Direct Loans allow a student to take, or simply expectation for the student to get summer or school year work. </p>
<p>Some of this can be offset at some schools by living off campus. Around many schools, there are “student ghettos” where the rents are lower than upperclassmen dorms/apts provided by the school, and getting off the meal plan and watching the meal budget can offset increasing costs.</p>
<p>But, yes, this can be an issue even without financial aid in the picture. I, personally, was hit pretty hard, as were my kids when they got upperclassmen housing, which was quite a bit more expensive than the freshman dorm double room, and also by the tuition increase, as well as some specialized costs that arose that second year. My kids took on part time jobs and, in one case took on a student loans, as we were at the very top of affordability freshman year and the sophomore years cost increases took us way over. We had to look for a number of ways to cut the costs to make it work. Junior year, my kids were off campus in much less expensive dwellings and watching their food costs along with other expenses, had jobs during the school year, and they had taken on extra work over the summer too, so things were good. </p>
<p>My son who is a senior meets more than his agreed share of expenses with the cuts in his budget that he was able to make, despite the fact that his tuition costs have increased each year, and the upper class apartment costs are way up there. He lives off campus, doesn’t eat out much, prepares his own meals, carries a water bottle he fill from home, makes his coffee at home instead of buying, works 15 hours a week, borrows his books from others who have taken the same course before, car pools for rides home. Big difference from freshman year when we paid for most everything at top dollar prices. He doesn’t buy much of anything, scrounging from friends and families if the need for anything arises. That first year, we tended to buy brand new for him, to give him a fresh start. So, over time, that transition occurred. </p>
<p>But the opposite can happen as well. My friend’s DD is living in very expensive off campus housing because the area around her school doesn’'t have much available in the area that is safe and cheap. She is in some programs that cost a lot, and her travel costs have increased. She does not work, as she has other things that she has found she wants to do, and her parents feel her time is well spent and they support this. But their cost for her year at school is way above COA as presented even for that year, and certainly a lot more than what their costs were her freshman year.</p>