ED and Merit

In the case of University of Chicago, they use the FAFSA for Federal aid and their own financial aid form for institutional aid.

Most schools that meet 100%need using their own institutional funds, will use either the CSS profile or their own financial aid forms.

Remember each school determines their own formula as to how they are going to give out their money

There also is a difference between automatic merit (if you hit certain combination of SAT/ACT and grades everyone gets money) and competitive merit. Automatic merit $ is easier to give out in an ED/EA application.

@sybbie719 So “meets 100%” may actually mean that the school is offering less then what one would expect from FAFSA’s EFC calculation.

“Meet full need” can be a rather empty promise, because the college determines what “need” is. The college’s net price calculator is a better estimate than a promise to “meet full need”.

The use of “meet full need” terminology can be significant in other ways, though. Some colleges make that promise to some students but not others, indicating worse FA for some.

““Meet full need” can be a rather empty promise, because the college determines what “need” is.”

So true.

Each school can determine how they define need. For example, some schools consider home equity an asset and expect the family to use some of that HE to pay tuition. Some schools ignore HE. That can make a big difference to a family that is house rich/cash poor in a high cost area.

Some schools “meet full need” in part by giving the kids student loans. Other schools commit to meet full need without loans.

End of the day, each school (even mega-bucks HYPS) have a budget that they have to hit. There’s a zillion dials that they can turn in order to enroll the class that meets their institutional goals for diversity, academics, net revenue, etc. etc. etc.

And just like there’s many different flavors of “need” and need-based aid, there’s many different flavors of merit – competitive merit, automatic merit, whatever merit. Some schools give “merit” aid to 90% of student. Some give it to 0.00009% of students.

End of the day, aid is aid. And the schools synch up their aid programs with their admissions programs.

Most FAFSA only schools do not meet 100% demonstrated need. Most do not offer and grant aid above what you are entitled to by the federal government and your state (other than federal loans)

@Purpleplum

I interpret the phrase “financial aid” to refer to need-based aid.

A merit scholarship is the equivalent of a prize, not “aid”. (In reality more of discount-- but the point is it is offered to entice strong students to attend, not to help out financially needy students).

So no, I don’t really buy into your rationale.

There is also money that is both merit and need based. Examples are merit scholarships available only to those with “need”, or whose award amounts depend on “need”. Or nominally need based aid that is “preferentially packaged” to help entice a desired student without being called a merit scholarship.

But the application process is different. Students applying for financial aid check a box on their application and submit financial documentation – so in the ED context that student has essentially made a contingent offer and agreement to the college— they said they needed aid, and so their commitment to attend is obviously subject to that request.

The student who wants merit money but does not have financial need, does not request need-based aid and does not submit financial documentation – has not set a contingency to their offer. That student signed a paper saying if admitted, they will come, no strings attached.

“Financial aid” is a broad category that covers both need-based and merit assistance.

“The student who wants merit money but does not have financial need, does not request need-based aid and does not submit financial documentation – has not set a contingency to their offer. That student signed a paper saying if admitted, they will come, no strings attached.”

Nonsense. That may be the way ED works at, say, Penn or Brown. But as noted above, that’s not how ED works at Denison and Grinnell.

More than half the kids at Denison and Grinnell get merit, and the merit award comes with the admissions letter. If applying ED at those schools meant sacrificing the chance to get and consider a merit award, then few people would apply ED. And Denison and Grinnell (who heavily rely upon their merit programs to enroll students) would be stupid to drive those ED/merit seeking applicants away. The schools have this all figured out.

There’s many many different versions of need aid and merit aid at various schools. It is far from black/white.

What type of consequences? If a family thinks in September that they can be full pay at NYU but in April decide that they aren’t really comfortable taking the risk, they can pull their application. NYU won’t send them a bill. Your kid’s high school might hold it against you and refuse to send final transcripts to any but your state schools. I don’t think they can legally do that but I think some do.

I think $70,000/year is a lot to spend. It’s easy to think that everything will go right – the family finances won’t be affected by death, divorce, or disability, or the student won’t have medical or academic issues and have to withdraw – but these things happen. If families decide they aren’t comfortable paying they should reject the ED offer. It’s easy to say don’t do ED if you’re not sure you can pay, but I don’t think it’s unusual for people to think/hope they can make it work and realize later they really can’t without risking their retirement. Only you know what’s right for your family. I wouldn’t submit an ED app to a school unless I had some idea I could pay, but if I did and changed my mind about it’s affordability I wouldn’t hesitate to reject the offer.

  1. Have an app to next choice prepped and ready to go before winter break. Anything other than an acceptance (WL, defer) means you are released from any binding agreement.

  2. Free money is free money. Doesn’t matter how you get it. Plenty of kids turn down insufficient merit for better need-based aid.