<p>My son (Asian-Indian) has a 34/36 on the ACTs, 780 Subject SAT Bio, 760 Subject SAT Chem. His GPA is 3.0. He goes to a top private school in Manhattan/NYC. I add this fact, because, I was told that the weighted GPA can be higher as a result. He has taken tough courses (e.g. Advanced Physics, Adv Math, Adv Computer Sci). Was told that schools would look at these favorably. Not sure though. He is on the school football team (but, it is not a school known for this sport)..</p>
<p>He wants to apply for ED at George Washington to their school of international affairs. Does this reduce the chance of him getting financial aid/scholarships? American University seems to be interested in him also. Will it allow us to get a better financial aid package if he has two admissions and a chance to discuss options with both. </p>
<p>I don’t believe applying ED will affect the chance at merit aid. If schools did that the word would get around and would affect their application rate. Applying ED does prevent a student from comparing FA offers from multiple schools. Some schools will try to match what they consider to be peer schools. I’m not sure if GW would consider American to be a peer school.</p>
<p>Is financial aid a significant consideration? If so, why is this kiddo applying ED anywhere? You would be better off applying RD and having multiple net offers to compare. </p>
<p>If you are looking for need based aid…neither GW nor American meets full need for all students. And they are both pricey.</p>
<p>If you are looking for merit aid, neither school offers guaranteed merit awards, and your kiddo’s GPA needs to improve to be in contention for significant merit aid at these schools…actually at many schools.</p>
<p>Schools have said outright that merit money is to get students to pick their school, not to rewards those who already have. I certainly do believe that ED could affect merit award at some schools. Which ones, I don’t know. I’ve seen no studies showing this and doubt any break down which students are getting merit money by ED/RD. I’ve known some parents over years upset at merit awards that come to light that their kids did not get, some substantial ones, when the student was accepted ED. Can’t tell whether they would have gotten them RD vs ED. I would love to see a comprehensive list showing whether or not ED accepted students get more or less merit money than RD students. Also, I 'd like to see whether the ED pool is stronger academically, say with test scores overall. I’ve read that the ED pool has stronger candidates but that often is due to athlete, legacy factors, IMO. </p>
<p>I know at certain schools, ED students get full need met when RD might not. </p>
<p>I just don’t see any sense in buying bought students which is what giving merit money to ED kids does. What ED kids get is a little extra edge and early end to the college app gauntlet. </p>
<p>Thank you all for your comments. This is very helpful. To summarize it: It is hard to imagine the school working hard to attract you if they think you have already committed! </p>
<p>I had a few more questions. Pardon my ignorance on this subject. We are looking for a combination of small need-based aid and basically taking out balance in loans. These could be as large as $250K (given the 4-years costs). We are comfortable with taking this out. We were told that as long as we are willing to take out loans, all of our costs can be covered by some combination of resources: Aid, Merit-Scholarships and Loans? Is this true? </p>
<p>Gobith, here is sort of how it works: Run your numbers through a FAFSA EFC estimator. That EFC is what YOU have to pay before you get a dime of federal aid. No federally subsidized loans, no federal grants, no federal workstudy, until you pay that EFC. Schools using their own calculators, come up with a whole other expected contribution, and they can go by that instead, but if they do, they can’t use federal money,nor can they use some state money also so restricted, without the same restrictions, and those PROFILE or other institutional expectations tend to almost always be MORE than that FAFSA EFC. So the EFC is the least you are likely going to pay, unless your find a school that costs less than that or if a merit scholarship comes through that exceeds need and reduces the EFC. </p>
<p>Merit awards and outside awards are applied in different ways by different schools, but generally they do reduce the need, and that EFC rule is still in effect. You end up with a $25K EFC at a school that costs $65, you have to get more than $40K in merit money/scholarships to reduce the EFC below the $25K level. You get $20K in merit money, the school will reduce your need fro $40K to $20K is what will happen. Outside awards are often applied to self help first. </p>
<p>Of course, you can borrow whatever the gap is…IF you meet the criteria of the loans. You undergo a credit check for them. YOu don’t automatically get any loans. Your student may get some subsidized loans in the aid package and unsubsidized Direct loans for students are also available, $5500 for freshmen, increasing a bit each year, but that’s not a whole lot. IF subsidized direct loans are in the fin aid package, up to $3500 can be, then that only leaves $2K for the student to borrow on an unsubsidized basis. Even more loans could be in the package, like Perkins loans which could also be subsidized, but those ONLY can go towards need, not towards EFC. So it’s not a given, that anyone can take out loans and the terms can also be stiff and harsh. PLUS is usually available to parents, but it does check if you are showing over due on your credit reports, 90 days, I think, and you can get turned down if there are issues with your credit. It’s not automatic, and in this low interest rate climate, the interest rate at nearly 8% is no bargain,</p>
<p>I also want to add that some schools, like Emory, with their Scholars program out and out say that ED candidates are also considered. Whether they get equal consideration for the awards, I have no idea. So you should ask each school’s admissions office if ED students are equally considered for merit money that the school gives out. What I said is more an argument than a fact. I would not swear to what I said It’s just a feeling I have and it makes sense since colleges are businesses. </p>
<p>cptofthehouse, Thanks a lot. Yes, this helps. I understand EFC. Also, it looks like you are saying that after all the low-cost options (direct aid, merit scholarships, low-interest loans etc.) are done, there is an option to take out a PLUS loan that can cover the balance (even $250K, if that is the gap over 4-years) at a high 8% type interest rate. I have decent credit history (720 points). So, I am not concerned about being turned down. But, I wanted to confirm that this will be available as an option with a high-level of probability. </p>
<p>Yes, PLUS is available most of the time. The hang up is not so much the credit score but whether you have ANY 90 day past due balances on your account is my understanding with PLUS. A parent takes out PLUS.</p>
<p>There is no limit to the amount you can borrow for the PLUS loan over a lifetime, however - you will only be allowed to borrow each year whatever amount is remaining in the student’s cost of attendance after other scholarships, grants, and student loans have been applied. </p>
<p>I took PLUS out for my oldest. We started paying it back as soon as we took it out. Each loan award had a ten year payback period starting right away. So what were were doing was extending that amount due for his college over 10 years, as a payment plan of sorts. IT was a long 14 years, I can tell. That’s close to some mortgages. We’ve just paid it off. Others don’t start paying until after the kid is no longer a full time student for six months. The thing is, that interest is a killer because it is at work the instant the proceeds of the loan are disbursed. </p>
<p>You plan to take $250,000 in loans for undergrad school? Here is my opinion. Certainly your family can choose to do this. But the loan repayment on that loan amount will be huge when you graduate…huge. You (the student) will not be able to take these loans. Your parents will need to take them, or agree to cosign them for you. And they will need to qualify for these huge loans every year.</p>
<p>If you are looking to take $50,000 plus a annually in loans, I am going to suggest that the school really is not affordable for your family. </p>
<p>I would suggest that you look at more affordable options. Why do you need to go to a $60,000 a year school?</p>
<p>Thumper1, you are right and so right! It is crazy. But, as immigrants to this country we feel that this is the ONLY gift we can give our child: The best education that we can possibly afford. We have already spent twice that amount (yes, twice) putting my son through private school! This is important to us. But, thank you for responding. I am hoping all this pays off in the long run!</p>
<p>Gobith, if your money for private high school was wisely spent (and I do believe in private high school), it should pay off for your child to get into a very good college with merit aid. Do not buy a college name. There are many schools that will provide your child a wonderful education at his level. If he can get into MIT without any merit, he can qualify for merit at many schools that will offer him a good education at an affordable price.</p>
<p>If you borrow $250k for UG, you will be truly an American - in debt! I can’t think of any worse gift for your child, parents unable to support themselves in retirement because they are in so much debt.</p>
<p>Also something to think about as well: my university adds together all required expenses (tuition and fees/room and board) with all other expenses that may or may not apply to your child (books and supplies, transportation, miscellaneous expenses) to get a total Cost of Attendance (COA) - which typically equals out to $58,000 per year. What happens is that the PLUS loan is added to the student’s aid package to meet the remaining cost of all of these expenses. Sometimes I see parents just blindly apply for the full amount offered without calculating what expenses actually apply for their child. For example, if your child lives on campus and doesn’t have a car, do they really need $864 in transportation costs for the year? Likely, no. </p>
<p>When considering applying for the PLUS loan, make sure you take a good look at what your school calculates in for their COA to insure that you are applying for the least amount possible to cover the necessary expenses individual for your child. </p>
<p>Your son can be a very successful American without having several hundred thousand dollars of debt upon graduation. The very vast majority of Americans do NOT have that kind of debt. You are borrowing yourselves to death. This is nit the right kesson to teach your kiddo. There is nothing that special about George Washington or American University. Yes, both fine schools, but there are tons of fine…and affordable schools out there.</p>
<p>The gift of debt isn’t a gift. It is a strangle hold. It can hamper cash flow for your student and/or you for many many years. What possible point is there in that?</p>
<p>imcertainly cant tell your family what to do, but I can say…$250,000 in debt for undergrad school is an insane amount…and will strangle your family for many years.</p>
<p>You dont mention your state of residence, but many state public universities have honors college programs which are excellent. Heck,many public universities are excellent…period. Your instate public would cost you half of what GW or American would cost you. $125,000 is excessive debt too…but it sure beats $250,000.</p>
<p>OP sounds like a NYer. SUNY would be a great deal and I’ve no doubt the student could qualify for all kinds of merit aid at a number of schools. But sometimes what the family wants to buy is exactly what the kid wants when it comes to schools I was that way with my first and wished I could be with the others. It was just not sustainable for us.</p>