So where do the algorithms and quants fit in with regard to, again, the many schools that have automatic (sometimes very generous) merit awards based on grades and test scores, without ever needing to see any financial aid forms or data on the family’s financial situation?
I think my confusion around the 529 being deductible is because it is deductible in our state. I am researching schools and financial aid, while my husband does the taxes. He had mentioned putting more into the 529 to maximize a deduction, but I assumed it was a federal deduction like a retirement account. Now that I know it isn’t, it helps clarify the value of that strategy.
We aren’t trying to hide money or get away with anything, just trying to make sure our surprise windfall is allocated in the most advantageous way.
@BelknapPoint
I am not sure I understand your question? Just because some schools have automatic merit doesn’t mean other schools are using that strategy.
Of the 10 schools on my kid’s list, two have automatic merit. The rest have either competitive merit scholarships or mysterious merit awards based on the whims of the admissions folks.
I am most concerned with the schools my kid is interested in. If she was wanted to go to big schools, this would be a much easier process. The list we have has been curated to accomodate the fact that she identifies as LGBT (which eliminates many options including religious schools or schools in places we have concerns about her safety/wellbeing). We have also researched the admitted classes of T10 law schools to make sure the schools on her list are rigorous enough if law school is the route she decides to go. Cross checking that with merit aid, leaves a fairly limited list of LAC options.
I hope your student knows your financial constraints. There are some great private and public schools that aren’t huge, and might come in under your price point. Miami of Ohio is one. New College in FL is another. Both fine schools. Other places she should consider…Arizona, New Mexico, UT Dallas, Denison, Union (they just reduced their tuition, IIRC). For the public universities, have her apply to the honors college which is one way to make the large school shrink. If she is willing to do public honors colleges, Alabama could be in the mix as well.
I happen to love Pitt, and think it would be a good option…but to get the best merit aid, you have to be a tippy top applicant applying as early in the admissions cycle as possible.
And that is why you chase merit. There are lots of families who can’t pay what the net price calculator says they should be paying. Merit aid is your friend. And it’s not the colleges buying rich kids…it’s the colleges buying highly qualified kids.
One thing you need to know…in the vast majority of cases, merit aid is awarded by admissions based on the strength of the student application. And in most cases admissions has no idea what your finances are.
Need based aid is awarded by the financial aid office. Those are the folks who know your finances.
I would suggest you run the net price calculators as soon as possible. Keep in mind that in January, they will be set up for kids enrolling fall 2020, which is a year prior to when your kid starts. Financial aid policies DO change so you will need to run the NPCs again in September 2020 for a better idea for when your kid is starting.
ETA…would she be interested in any of the women’s colleges in the northeast? Some of them give merit aid, and are excellent colleges.
And those four $5k merit scholarships probably have no need component all. The school is just giving a $5k discount as a merit scholarships and they don’t look at need at all of those 4 recipients
New College of Florida is an LAC (very small) where you can use the Benacquisto (full ride for NMF).
Thanks @thumper1
Three of the schools you mention are on our list and one of them is in her top three!
She is very practical and saw how much law school debt limited our choices when she was younger. She will have a full year of dual enrollment credits at our flagship state school by the time she graduates from high school. If she doesn’t get great merit she will go there (with a full year of study abroad) and be out in three years or maybe look at some of the larger Florida schools that offer full rides with the Benequisto scholarship.
She worked her tail off to get her high test scores and understands that without a good amount of merit aid, a lot of the schools she likes will not be a viable option.
Already on the list!
I’m a Midwest native…and I have a sweet spot for Denison, Miami and Pitt. All offer merit aid to high achieving students. I think the most competitive for merit is Pitt. If that’s on her list, apply as soon as the applications open.
In fairness to you, you did say “It is my understanding that merit is (in some cases) financial aid for wealthier families, a discount to sweeten the pot and make a school more desirable.” I think it is a small amount of cases, and to the extent it does happen, it’s probably more prevalent at private schools as opposed to publics. The NYT and Washington Monthly likely found it hard to resist citing a relatively few schools where merit aid is targeted as a means to enhance the school’s revenue. I may be a snob, but I find it easy to look down my nose at any school that does this. I stand by my position that the vast majority of merit awards that claim not to have any financial component (either for the needy or the definitely not needy students) actually do operate that way.