Kiddo has scholarships, eligible loans, eligible work study, and then the balance we will cover. He got an additional external scholarship. When it was applied, it lowered the loan eligibility rather than the balance. If I understand correctly this is because the cost of attendance - EFC = how much all those scholarships, work study and loans can add up to. So getting the extra scholarship required reducing the loan amount.
I’ve emailed the finance person, but curious if anyone knows. When they figure the COA they are estimating using the average dorm cost for a freshman and not necessarily accounting for lab fees for certain classes, meal plans, etc. He is in a roommate group and I’m not totally sure how things get assigned (off roommate preferences, his, etc) and depending on spacing he could end up in a little higher priced dorm (like one with a semi private bathroom). The difference is about $300-450/semester. I’m wondering if that will be added to the balance we have to come up with or if that raises his cost of attendance and thus puts money back into his loan eligibility. Obviously, if that happens, it is being paid for one way or another, but is it likely to be extra $$ we have to come up with or extra $$ he could borrow if need be (our goal is to have him minimize loans, but life is life).
They said they will finalize bills in July - so I assume that is waiting on room assignment, scheduled classes, etc?
COA and FA commonly use an average housing cost for a given type (on campus, off campus, or commuter), so more or less expensive choices affect the student’s bottom line.
Thanks - that is what I figured. The simplified version of that question would be is COA based on a reasonable estimate or does it adjust to exact numbers as things finalize
I would say that there are as many different ways to do college billing as there are colleges in this country, so the answer really depends on the particular school. Unless someone with knowledge of the school that your son is attending speaks up, what you are likely to get are anecdotes that may or may not apply to your situation. The best thing to do is ask the billing/financial people at your son’s school.
They don’t usually review financial aid packages once accepted except for things like scholarships coming in late. If you need a loan for that extra 400 for the dorm, you would have to ask for the COA to be reviewed by financial aid. Otherwise they will assume their package is fine.
That’s where we got caught - he has 2 scholarships that haven’t come in yet and we aren’t sure exactly when they will. But when they put the estimates in there it lowered the loan amount. We will make it work - I’m just a planner and a math person and not having/understanding concrete numbers drives me a little nutty I did email the financial aid person and I know that most of it should shake out next month- just trying to plan. Thanks!
Believe me, I know the feeling. The first year is a big learning curve, but once you figure out how the school does things, it’s much easier to plan and budget for years two through four.
Even if it lowers the loan that is included in the package, he can take the entire $5500 loan but it will be unsubbed. You have to ask them to put it back into the FA package.
Ok first of all, yes COA at this point is an estimate. It includes tuition and fees that are in effect at the time the FA award was prepared, and average room and meal plan costs. COA also includes estimated miscellaneous expenses like travel, books, personal.
If your son had need based aid in his award like subsidized loan, federal work study, those would be reduced by an outside scholarship, because they would result in his need being lower.
But final aid would need to reflect actual costs.
For example, my D’s actual housing and meal plan cost was lower than on the FA letter. The tuition was higher, because the school sets new rates in July. Fees were higher because she also had lab fees based on the classes she registered for. The state grant was higher than estimated because of the higher tuition.
We got the actual bill in July and it was due in August.
In your case, I would check the college website in July and see if new tuition, fee, room and board rates are published for 2017/18. Once you know the room assignment it will be easier to see what the actual cost will be for that.
Then subtract all scholarship or grant aid he was offered from the total of tuition, fees, room and board.
That is your final cost to the college. He can borrow up to $5,500 in loans as a freshman. Some might be subsidized and some unsubsidized (subsidized depends on need).
The work study can be used for his spending money. He earns that during the semester as a paycheck. He will not have that money up front. He will have to find a job and will get paid based on hours worked.
Thank you! @mommdc you are correct. He has need based aid - subsidized loan, perkins, and unsubsidized for the year. Plus he qualifies for work study.
Just heard back from FA. All freshman can get up to $5500 in federal loans (up to $3500 subsidized). Perkins is limited to $2000 or $1000 based on need. So when he got the extra $1000 in scholarships, his need went down and so did his eligibility for perkins.
