<p>You don’t get a dime of work study money until you go to the fin aid office, look through their job listings, apply for what jobs that are there, get the job, work the job. You then get the money as you earn it. There is no guarantee that there will be any jobs left for you, that they will fit in your schedule, that you can earn the amount awarded. That is just a maximum you are allowed to earn. The money does not come off of your college bill. Most students use it as their discretionary spending money, or towards the next term’s bill or toward monthly payment plans if possible. </p>
<p>I think schools should make it clear where the funds are coming from when they present the package. A lot of kids are confused. My son’s friend got very nice packages, but with all of the different presentations is was difficult to see what was what. Had to show her that all that mattered was how much she ended up having to pay after subtracting out the loans and work study. Some of the schools had the gall to add her anticipated summer earnings as part of the package.</p>
<p>*I think federal loans and work study are both legitimate forms of finacial aid, because: </p>
<p>When a school that meets full need admits a zero EFC student, the school is arranging all financing and the student attends without making any payment; the aid is that all expenses are covered, without the student applying or qualfying. The facts that the student must work a few hours and also repay some of the money over many years after graduating are conditions of expenses being paid up front for the student.</p>
<p>The same federal loans and work study are also given by a schools that do not meet full need, and/or the student does not have zero EFC, but those items retain the same aid status.</p>
<p>Schools that include 10% federal loans in aid can offer education to 10% additional needy students; those 10% are (or should be) glad loans are included in aid packages. *</p>
<p>They are a way to make schools affordable, but the terminology is confusing. To the uninitiated, financial aid or “need based aid” means “free money”…which is why large numbers given for reported FA packages can be very misleading.</p>
<p>I just feel that the financial aid package should be as clear as possible to the recipient. For many, that is their first experience with it. It’s crazy when the presentation is such that it is virtually not understandable. Also with all the various ways colleges present the aid, it’s often hard to compare and really come down to the bottom line which is what you are going to have to pay and that amount includes loans even though your payments are delayed. Once you get those bottom line amounts, you can apply what loan options that are also offered (Staffords will tend to be consistent across the line) to those amounts, but it should always kept in mind that you will have to pay back those loans. You are just delaying the payment.</p>
<p>I fully agree that schools (including full-need schools) should be totally clear and transparent about the source of each financial aid component, including loans and jobs.</p>
<p>FWIW, I think including more than federal loan amounts in “meet full need” FA is bogus.</p>
<p>Yes, CC should keep a running list of colleges that put Plus loans in FA packages and say that they “met need.” Those schools need to be exposed.</p>
<p>I don’t mind a school including a mention of a Plus loan as an option for parents to cover their EFC, but to put one in to cover “need” is just misleading.</p>
<p>I agree, m2ck, a thread should be started listing those schools that included those PLUS loans, pretending to have met your need. (Maybe it would avoid a lot of disapointments and students would not apply, NYU is obviously one, there must be many others)</p>
<p>Von, I agree, including more than federal loans is bogus. I think we need more transparency. I would like to see 3 clearly labeled sections. Grants, Federal loans, and other. I think one legitimate reason to include federal loans and w/s in financial aid summary is that some kids may have no other resources, their parents can not or will not contribute and the question to them is not only are loans advisable, but what options do they have.</p>
<p>And we need a list of those OOS schools with the huge merit scholarships, too! I know about Alabama thanks to mom2ck, but after that … ? I feel like asking my kids to fill out 50 apps!</p>