<p>What type of “private college” are we talking about?</p>
<p>My d. attended one of the elite privates that claims to meet 100% need of its students – some years she was Pell-eligible, others she wasn’t – but the need was calculated using the same formula from one year to the next. If my d. was eligible for Pell, then her school-based grant was adjusted downward to compensate – no Pell – more money from the school.</p>
<p>So for that type of private college, Pell eligibility is important within their own financial aid budget, as it frees up funds that can be disbursed to other students – but it means nothing to the individual student. Any student who is Pell-eligible by definition doesn’t have a prayer of attending the pricy private without substantial aid, and if the college meets 100% need, then the student is going to get that money whether or not they are Pell eligible. </p>
<p>On the other hand, there are colleges that don’t guarantee to meet full need and encourage their students to take out large loans to attend – perhaps for those colleges, extra Pell dollars could be an incentive to raise their tuition, if one assumes the amount that students are willing and able to borrow remains constant.</p>