Financial aid and ED - schools allowing release if need not met

<p>My d is a junior, and I saw on the Vanderbilt web site earlier today that if you are accepted ED and the financial aid package offered does not meet your needs, the school will release you from your obligation. How common is this practice, and which other schools allow it?</p>

<p>Vanderbilt meets full demonstrated need, so how would that happen? You can google and find a list of colleges that meet full demonstrated need. For the other, it is possible to get out of ED if they don’t meet need. I’m sure it happens.</p>

<p>I guess if your notion of demonstrated need differs from theirs? Apparently not all schools have this clause in their ED agreement:</p>

<p>Should a student who applies for financial aid not be offered an award that makes attendance possible, the student may decline the offer of admission and
be released from the Early Decision commitment.</p>

<p><a href=“http://admissions.vanderbilt.edu/assets/pdf/2014EDAgreement.pdf[/url]”>http://admissions.vanderbilt.edu/assets/pdf/2014EDAgreement.pdf&lt;/a&gt;&lt;/p&gt;

<p>It’s also stated on the admissions blog here:</p>

<p><a href=“http://admissions.vanderbilt.edu/vandybloggers/2013/08/early-action-early-decision-and-regular-decision-whats-the-difference/[/url]”>http://admissions.vanderbilt.edu/vandybloggers/2013/08/early-action-early-decision-and-regular-decision-whats-the-difference/&lt;/a&gt;&lt;/p&gt;

<p>I haven’t checked others (yet) but saw a post elsewhere on CC that WUSTL, which I believe is a ‘full demonstrated need’ school, did not have this clause in their ED agreement.</p>

<p>And since I started writing this, I discovered this thread:</p>

<p><a href=“http://talk.collegeconfidential.com/george-washington-university/945411-early-decision-financial-aid.html[/url]”>http://talk.collegeconfidential.com/george-washington-university/945411-early-decision-financial-aid.html&lt;/a&gt;&lt;/p&gt;

<p>where it’s mentioned that GW, though it accepts the common app, has a different ED agreement than the common app’s.</p>

<p>Just because the college/university in question believes that its “meets full need” financial aid package is good enough for a family, does not mean that that family believes so.</p>

<p>Yes, you can back out of ED if the money doesn’t add up for you. But if money is an issue, it almost always is smarter to apply RD so that all of the aid packages can be compared side by side. Here’s one handy tool that will help you do just that: [FinAid</a> | Calculators | Award Letter Comparison Tool](<a href=“Your Guide for College Financial Aid - Finaid”>Award Letter Requirements - Finaid)</p>

<p>Schools that “meet full need” may give different financial aid packages and net prices, due to:</p>

<ul>
<li>Different definitions of “need”, based on differing institutional methodologies.</li>
<li>Different expected student contribution (work earnings and/or direct loans).</li>
</ul>

<p>It would be best to run the school’s net price calculator before applying. Of course, if your family finances are unusual or complex, the risk is higher that the actual net price will be different from the estimate from the net price calculator. But that is why you want to check for a financial aid escape clause in the ED agreement. And, as noted above, applying ED is not a good idea if you need to compare financial aid offers and net prices between different schools.</p>

<p>I would suggest you run the net price calculators on these college websites you are interested in for your daughter. They will give you a good estimate of the amount of aid and your net cost. </p>

<p>Yes, you can decline an offer ED if the money isn’t what you need BUT keep a few things in mind:</p>

<ol>
<li>Your high school could very well have repercussions if YOU do this. Colleges offer ED because they expect accepted students to attend. In this day and age it is VERY possible to get yourself a decent estimate of what your aid will be. Your kid’s high school could feel the repercussions of YOUR kid not accepting an ED spot. Others applying ED in the future might not get accepted.</li>
</ol>

<p>It’s not all about YOU.</p>

<ol>
<li>You will NOT be able to compare bottom line costs amongst several schools when you have that ED offer. It could be the worst your kid gets. BUT it could be the BEST. You will be given a short window to accept (or not) this offer. Once declined you can’t get it back. You are DONE with that college.</li>
</ol>

<p>Think about it. What if your kid applied ED to Vandy and your net cost was $25,000. She declines. Then all the other RD offers come I with a net cost of $35,000. You would be kicking yourself.</p>

<p>With RD, she would be able to compare offers.</p>

<ol>
<li>Schools do NOT cover the family contribution in need based aid…at all. Make sure you have chosen colleges where YOU can cover those costs. Whether ED or RD, you will be expected to pay them.</li>
</ol>

<p>The Common App ED agreement says that students can be released from the ED commitment if the school’s FA offer doesn’t make the school affordable. I used to think this meant that every ED school held to this policy, but there are a few where you commit to enrolling regardless of FA. Which makes it even more important to check the individual school’s policy before signing the ED agreement.</p>

<p>*but there are a few where you commit to enrolling regardless of FA. *</p>

<p>Which schools are those and what do they do when you don’t deposit/enroll/show up?? Seriously… I think by now we’d have seen posts from students from THOSE schools who are being told “you must enroll…or else” (or else what?)</p>

<p>As to the question about Vanderbilt specifically, you might</p>

<ol>
<li><p>Post a question on the Vanderbilt thread regarding how the financial aid packages look. Are they as large as expected? How much of them was composed of loans?</p></li>
<li><p>Find the stats on Vanderbilt financial aid and on the average debt per student. I think Vanderbilt reports this annually and you can also check the National Project on Student Debt and (I think) US News and World Report.</p></li>
<li><p>After this year’s application season, contact their financial aid office and ask lots of questions. Do so after you’ve run their net price calculator.</p></li>
</ol>

<p>In general, yes, early decision is a risk, but it can be a calculated risk. DS really wanted to apply early to Columbia and we felt reasonably comfortable financially because of their no-loans policy and other data. And the offer is right where the NPC predicted.</p>

<p>Thanks, all. I had been assuming that since we’re looking for financial aid, ED is not an option for all the reasons stated above. Then I saw the Vanderbilt admissions blog posted above and realized that, at least there, it might be an option. I did 30-some-odd NPCs a few months ago and the range for us is pretty clear, and the generosity of the packages tracks reasonably well with the Princeton Review Guide’s financial aid ratings.
My question is about schools apparently having different policies, which I hadn’t known before the other day; learning this occasioned my question. Here’s what I know:

  • The Common App ED agreement has the ‘escape clause’ in it
  • Not all schools use the Common App ED agreement, and some of those schools own agreements do not have the escape clause
  • Vanderbilt not only uses the Common App version with the escape clause, they make a point of it on their admissions blog
    If we risk ED at all, it will obviously be at a full-need school. My question was/is about which such schools, if any in addition to Vanderbilt, make a point of letting you know about the escape clause.</p>

<p>I’m still waiting for someone to mention an ED school that “requires” attendance even if the FA isn’t affordable? </p>

<p>The idea just doesn’t make sense. Does a school really want a student forced to show up who then can’t pay the first semester’s bill? No…that’s why I don’t think there is such a school. </p>

<p>Besides, if the FA isn’t affordable, then the student isn’t going to send in the $XXX deposit.</p>

<p>The point is NOT that a student can renig on an ED offer, the point is with the timing of the ED acceptances it can shut the student out of scholarships with submit dates in early December and the receiving of financial aid from EA schools which often come well after the date the student renigs on the ED acceptance and financial aid package. Like someone said with ED you do not know if the offer is the best offer. If that isn’t bothersome…that an ED school might cost most than another school then ED is perfectly acceptable. If every penny counts and the budget is of utmost paramount than there are things that one “gives up” by applying ED even though the student “gets” an early acceptance, an early financial aid package and is “done” with the college app process. Each family will make their own decision, in this case there is no right or wrong…it’s simply a decision.</p>

<p>*the point is with the timing of the ED acceptances it can shut the student out of scholarships with submit dates in early December *</p>

<p>^^^ This</p>

<p>This can be a real problem for those who WAIT til they get their ED/FA results to apply to other schools.</p>

<p>Every Dec/Jan we see kids posting that they’ve just learned that their families can’t afford their ED school (or really any need-based aid school)…but then they’re too late to apply for many/most of the big merit scholarships. </p>

<p>However, ED students CAN apply to the big scholarship schools BEFORE they get their ED results…it’s just that too many don’t. :(</p>

<p>The NPCs are not accurate for people who own their own businesses, who take business deductions, who have non-custodial parents, and any other “not simple” financial situation.</p>

<p>To the OP…why does your daughter want to apply to any college ED? Does she have a top choice that she really wants to attend? Or is she thinking an ED acceptance will be an easier one?</p>

<p>I personally think ED should be for candidates who plan to attend the school because it is their top choice. That is how it was originally designed. </p>

<p>Mom2…no school is going to tie a child to a tree and force them to attend! BUT some ED schools do have relationships with other colleges. And also remember that her high school could feel the repercussions of HER reneging on an ED acceptance for future students considering this college from her high school.</p>

<p>^^^</p>

<p>I realize that but since NPC’s don’t work well for many families (think how many kids today have divorced parents…or a parent takes business deductions), so I’m not sure that a univ will “ding a high school” because Johnny’s NCP won’t pay his “fair share.” </p>

<p>When kids of divorced homes do ED, do both parents sign the agreement…or does only one? </p>

<p>I know we hear chatter that ED schools won’t accept future applicants from a certain HS if an accepted ED student declines. With all the complications that can go on, I find it almost heartless for a school to punish future students just because a previous student had a financial complication. A GC just can’t vet some of these things. It just doesn’t make sense.</p>

<br>

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<p>She doesn’t have a top choice at this point, but even if she does develop a favorite I’ve until now told her forget about ED because of financial aid. I was wondering if maybe we could qualify that to ‘forget about ED unless it’s Vanderbilt or [other schools to be identified]’. And yes, since I think it’s generally acknowledged that ED increases one’s chances a bit, we were thinking it could help with a reach-y school.</p>

<p>My DD just got accepteted to BU ED we asked for NO aid, well fancy that I jsust got laid off from a executive level job where my salary would not qualify me and I could easily pay from income (and have enough savings and severence to pay but last time this happened I was out for 2 years and burned through a lot of savings.)</p>

<p>I am going to contact the school to see if we can apply for aid anyway ( and may get denied), we really want her to go she worked so hard to get in and if she needs to withdraw all her other applications to our state schools for instance and then penalize other students for my misfortune, that would be a travesty ( and I would make sure my editor friend at the NYT hears about it)</p>

<p>JSS. So sorry to hear about your job situation. I hope you got a good severance package, and that you land a new job quickly.</p>

<p>BU is NOT going to penalize your high school for YOUR situation. You LOST YOUR JOB! Your financial situation has changed. It’s the situations where the schools offer full aid…but the family can’t pay their contribution…and then the kid says NO that cause issues.</p>

<p>Boston University does not meet full need anyway. You may find that there is a gap in aid regardless of your income. In addition, they will likely review your student’s situation as a special circumstances consideration (I’m speaking from experience here…DS was a freshman at BU when DH lost his job. BU would NOT even review this until after 90 days had passed from the layoff)</p>

<p>I don’t want to high jack this thread from the OP, but I would suggest you contact BU immediately about this new financial situation. See if your kiddo’s acceptance can be moved to RD, and an application for aid (Profile and FAFSA required) submitted.</p>

<p>And as an FYI, they WILL consider any severance package you receive. They were very clear about that. The year my DH was laid off (also the start of December), his actual income was almost double usual because of the severance package. Luckily he found another job!</p>

<p>ONLY BU can tell you what needs to be done. They told us what we needed to have for that special circumstances consideration. We gathered all the materials (including lay off notice, and filings for unemployment) so we would have them to file. But we didn’t have to do anything because DH found a job very quickly.</p>

<p>To the OP…</p>

<p>If you have a VERY low family contribution AND you can pay that…and the school guarantees to meet full need…ED MIGHT be OK. But even with all of that, you won’t be able to compare YOUR net costs amongst other schools with ED. </p>

<p>Re: the admissions “tip” for ED, in my opinion, there is not much of one. Remember that that “higher” ED acceptance rate includes recruited athletes, legacies, development admits, and the like. For the “regular” applicant…likely not much of an ED tip.</p>

<p>I agree, the admissions “tip” is that the college can cull qualified students and know the impact on their finaid budget. the “tip” is to the college not the student. To me, the “tip” is perceived not real. Kids apply that want to attend and families sign off on ED when they have a pretty concrete view of their financials so the Kids and the Colleges are matches. Why not accept a kid who is qualified and wants to attend? Rolling and EA are more random with regard to the pool of applicants and the families. Kids apply to “alot” of colleges they have no intention of attending and to colleges the families really can’t afford and the admissions decisions are more guesswork whether or not the kid will attend so ED “looks” like it provides a tip but I’m not convinced.</p>

<p>Parents where is assistance offered if you & ex-spouse have been denied Parent Plus loan(s). Any others besides Tuitionmanagement.com? Please help as we’re reaching critical deadlines</p>