I am very sorry if this question has already been clearly discussed on another discussion or if it an obvious answer. I am the second child to attend college in my family and do not understand all the processes. I received my financial aid package from University of Minnesota Duluth and am confused if it is indeed a good financial aid package. In my financial aid letter, it was stated by the university I should be pleased that 100% of financial need was met. However, it does not feel that way.
My financial aid package was calculated using the total yearly cost (including books, transportation, expenses, etc) to be $23,522. (I understand that in reality I will only need to write checks for tuition and room and board totaling $19,806). The financial aid package showed me that between my expected family contribution and parent plus loans, my full financial need was “met”. However, essentially I am not receiving any merit or grant money so I am still paying the full cost.
Can someone please help explain to me if this is this a “good” financial aid package? Thanks!
Ok…so your parents would be expected to,pay that $8000. You would not get need based aid for that. Add to that the $5500 Direct Loan, and you have $13500 covered of your billable costs.
This school does not meet full need for all. You have an additional $6000 or so to cover in just billable costs. Is that affordable? $8000 plus $6000. Plus your Direct Loan.
My parents will not pay for any college costs so already I have to come up with the 8,000 EFC in scholarships/work earnings and then I do not know if it would be possible to make up that additional 6,000. This makes much more sense now, thanks
Yes, I did. And actually the cost associated with UMD IS instate because of reciprocity. I am awaiting two more financial aid packages but I received many automatic scholarships from two other out-of-state schools that actually brought the cost down to lower than the in-state near my home. I am hoping to compare the three packages to see how much they differ.
Excellent plan. You may very well have to get a summer job to bridge some of the gap you have with your lowest cost school. Then ask your parents if they can at least help out with room and board since you won’t be living at home. Time to negotiate.
If your parents apply for a PLUS loan and get denied, you’d be eligible for an additional $4,000 (or thereabouts) in unsubsidized loans . . . but having to borrow that additional amount for four years really wouldn’t be a good idea - you’d graduate with far too much debt.
Unless you get a HUGE merit award…your EFC will be expected to be paid by your family. The only exceptions would be if you got a merit award that was very large.
In addition, at many places…a merit award will reduce your financial need…so it’s not like you would get both.
I’ve completed and been notified I have won scholarships from outside sources. I guess I am incorrectly understanding those can be applied to my EFC? Either way, according to the financial aid package, my parents will have to pay the cost?
@492015 Note that scholarships would reduce your need. Until your need gap is filled, your EFC would not be touched. Your need based aid would just reduce by the amount of scholarship usually starting from workstudy and loan first and then grant (but it may depend on the school).
You need to contact the college and ask. At some schools, you can stack scholarships…at others an outside scholarship reduces your financial need…and therefore reduces your need based award. Usually loans are reduced first…then work study. In most cases, the EFC is not reduced.
Doesn’t matter who the award is designated to be paid to. You are REQUIRED to report all outside scholarship awards to your college. I’d bet a weeks pay that is on their website too.
Thank you to all who have helped me thus far! I guess the part that is confusing me is how outside scholarships are affecting my aid. The award says my parents would need to take out Parent Plus Loans of $18,022 to cover their EFC as well as the additional amount. Wouldn’t then scholarships reduce the loan the award is saying my parents should take?