EFC, FA and merit scholarship confusion

Paying for College
1

<p>I got accepted EA to my dream school, a private LAC, with a merit scholarship of 20,000. It costs right now about 48,000 per yr. Let’s say (I read it someplace) they meet 96% of need. My EFC from FAFSA—which is what this school uses not the CSS thingy--came out 24,000. However, my parents are willing to pay up to 12,000/yr. </p>

<p>It would cost about 10,000 to stay in residence at the tuition free and somewhat crappy and very huge state mostly commuter university in my crime-ridden hometown, so my parents are basically willing to kick in another 2k for me to go to my dream school, which is sort of ok of them since they can’t see the very real advantage of going there, but could have decided for me to stay home and commute for practically free, or pay my own rent in the student ghetto. </p>

<p>I’m expecting the fin aid pkg the school comes up with could have something like 2,000 work study and a 5,500 loan with the rest made up in grant? I don’t have time for a job right now with a full load of IB and EC’s, but I plan to work full-time over the summer and save a reasonable amount for incidentals. </p>

<p>I come up with the following 2 scenarios as examples of how it could pan out or definitely not pan out, but am not sure if either way is even close to how it actually works (I emailed my counselor and she said, I think, it’s like the first one but other threads here sound more like the second):</p>

<p>Scenario A: (Merit scholarship separate from and on top of financial aid)</p>

<p>Overall cost 48,000 – EFC 24,000 = Need 24,000</p>

<p>FA Pkg (96% of need) about 23,000 (2,000 work study; 5,500 Stafford loan; 15,500 institutional grant)</p>

<p>So 48,000 less 15,500 grant leaves 32,500 to pay; less 20,000 scholarship leaves 12,500; less work study 2,000 leaves 10,500; less 500 from my savings leaves 10,000; thus I could forego the loan and graduate without debt and attend my dream school at the same cost to my parents as staying in-state. Is that rainbows and unicorns?</p>

<p>Scenario B: (Merit scholarship mixes in a non-helpful way)</p>

<p>They take out the merit scholarship first (48,000 Cost less 20,000 scholarship less 24,000 EFC = 4,000 need) and offer a package of something like 2,000 work study and 2,000 loan and expect my parents to pay remaining 24,000 (not gonna happen)?</p>

<p>If going to my dream school with the scholarship they offered is too unrealistic I want to forget about it now instead of spending the next 2 months fruitlessly hoping for a magically delicious solution. I should start getting used to the idea of staying local for college if that’s what’s in store--though it will suck, especially since a few of my friends and others in my class with similar stats got in ED and can pay for their prestigious dream schools—but that’s life, which could be worse.</p>

2

<p>Sorry to say but it will most likely be scenario B. Almost all schools will take away merit first to determine need.</p>

3

<p>Not only is it likely to be scenario they may not meet 96% or what ever the average is that the meet for need. That 96% figure can be any number of things. They may meet 100% of need for those kids who have low need and not that much for those with high need. So the percentage could be a lot less. Throw in the full Stafford loans, Work study and maybe some in house loans and you may not be getting much more than the merit award in terms of grant.</p>

<p>I am curious as to what school uses FAFSA only and meets 96% of need, on average. I’ve yet to find such a school. </p>

<p>If you are in the top strata of those going to this school, it is possible that you might get an enhanced package. However, the way it almost always works is that the need is reduced by merit. In fact, you are not permitted to get subsidized Staffords, Perkins, SEOG, or work study unless you have need. And the need is going to be reduced by merit. Most schools also define need that way. It’s reduced by any merit awards including outside awards.</p>

4

<p>The merit scholarship will get applied to NEED first. The problem will be your EFC since your family won’t cover all of that.</p>

<p>48k COA</p>

<h2>24k EFC</h2>

<p>24k “need”</p>

<p>Your need will get covered with a $20k scholarship and a $4k loan. You can borrow another 1500 towards your EFC. You won’t likely get WS since you have no need.</p>

<p>You can work over the summer to help cover some of your EFC along with your parents’ contribution, and work part time during the school year for pocket money, but you still may be short.</p>

<p>What school is this?</p>

<p>% of need met doesn’t mean anything when dealing with one person’s situation.</p>

5

<p>It’s Earlham College. I read the 96% on Collegeexpress someplace but other sites say 91% (and good point that an average is not neccessarily applicable to a given student).</p>

<p>Thanks for the replies.</p>

6

<p>Stardate, I hope something works out for you there.</p>

7

<p>Yes, unfortunately, percentage of need met counts only if it’s 100%.</p>

<p>But, as noted above, for the percentage to be 96%, then someone has to get 100% of their need met . . . so, with any luck, it will be you! :)</p>

8

<p>^^^</p>

<p>It seems like the bigger problem is EFC. Sounds like need will be met with the merit and a student loan.</p>

9

<p>COA=48,000
EFC=24,000
Need=24,000
Even if they meet 100% of need, you will still have a gap of $12,000 between what your parents will pay and what it will cost. Since you have applied, my advice is to go ahead & hope it works out … but be sure to have another plan in case it does not. Best of luck.</p>