Financial Aid Offices Told to Give More

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<p>Eternal, every little bit is better than nothing, but for private school costs, or 4 year flagship costs in some states, IMO, it is a drop in the bucket. COAs go up 4-8% a year at many schools. The question is 4% is just how much in 2009? 4% of 22,000 (might be COA at an instate flagship like mine) or 4% of 52,000 (sticker price at a more expensive private school) is a lot of money and wipes out the 4k per year for volunteering very quickly. Since this program was announced, I think that it has already been wiped out through increased COA at some schools, LOL, or will be after next year’s increases are taken into account. I think that for the middle class and lower income family this is now a completely broken system of educating our citizens.</p>

<p>Re: Obama’s tax credit community service exchange idea … for every such program there is a cost involved to set up, train, implement, monitor … you get the picture. It’s not as simple as it sounds.</p>

<p>My school is a state school. We are actually increasing grants to our poorest students - Pell eligible. I think we probably have the largest percentage of Pell eligible students of all the public U’s in our state, so this is a big commitment of funds. So it’s not like we aren’t trying. But it’s the income adjustment thing that is going to be a killer. If the government wants us to help out families who have lost their jobs, then they need to TELL US WHAT TO DO. If they establish a policy, life would be a million times easier. Families would know what to expect … schools would know what we should be doing … but I doubt that will happen. It’s easier to say something ambiguous that doesn’t accomplish anything.</p>

<p>The BEST financial aid would be for private colleges to lower their costs. They spend far too much money on sports. Travel expenses for Div I-A teams is prohibitive. Coaches salaries in the millions? Outrageous. For what? Glory on the boob tube? Athletics are part of the academic experience but things have gone way out of whack and soaking students and families so pampered athletes (some of whom bolt early for professional ranks anyway) with LOW SAT SCORES can be carted around to play hoops or football is ridiculous.</p>

<p>Northeastmom,
While 4K isn’t much, and is probably easily offset by rising tuition fees anyhow, it is something that has been proposed that is measly enough that it might actually happen. It’s not likely that we’re going to be completely socializing education or that private colleges will lower tuition out of the goodness of their hearts. $4,000 can make a difference. Not in everyone’s situation, but for those that it does help it’s important.</p>

<p>endlessrecession, I’d like to see the climbing walls, hot tubs, and bathroom granite counter tops disappear. </p>

<p>Eternal, I think that it can make the difference between no college and community college, and for some btn. community college and a 4 year college. The problem is that half of the 4k has already been wiped out by $2000 increases at some public Us this year! Even the government cannot keep up with increases in college costs!</p>

<p>The schools do seem to waste a lot of money! They don’t need their logo/seal whatever on every single paper napkin & paper/plastic cup at events! I mean, plain will do! </p>

<p>I have seen marble shower stalls, saunas, etc. But a lot of students & parents are expecting all these frills now!</p>

<p>SLUMOM, that is a good point too. As far as expectations I agree too, and it is most unfortunate, IMO. </p>

<p>Also, do you know what you pay to keep the the pamphlets and recruiting “giveaways” going to prospective students? My son got a sportsbag when he was a sophomore!! Please. My older son received pennants, fancy porfolio to store papers, t-shirts, pens, lanyards, flashlights, and candybar with the school name on it. My younger son recently received a mailing that came with 3D glasses.</p>

<p>“Besides pay cuts and job losses, financial aid officers are permitted to adjust the FAFSA for medical expenses and other unavoidable family expenses, such as care for a relative.”</p>

<p>This is what the article said. So if my parents spends thousands every year on medical things(around 6k), would that make enough difference on my EFC?</p>

<p>Cost vs Expectations create a pretty detrimental spiral. Students at my college (private, women’s LAC) are aware that we’re all ridiculously spoiled. We have a brand new gym where most of the machines have tvs attached, our lawn is well-manicured at all times, and the food (especially dessert) is actually good. But the presence of these amenities justifies the ticket price. And the ticket price allows lavish expenditures on things that aren’t really necessary except for aesthetic value and to sway prospective students.</p>

<p>Medical expenses allowances are usually calculated by deducting 3.5% of your AGI from the total of the medical expenses, under the institutional formula. Schools which use the federal formula have the option of considering your medical expenses as an allowance. They can exercise professional judgement on that. </p>

<p>I always submit copies of our medical expenses so it is documented. Whether or not the school considers them is another thing!</p>

<p>EFC is great, because everyone is playing by the same rules, based on numbers. If the government throws away the even handedness, and opens the process to those who spin the best sob story, then everyone loses. </p>

<p>I hope that colleges will not heed the government’s call. EFCs are set once a year. Deal with it.</p>

<p>@toadstool: You miss the point that the EFC calculation “based on numbers”, as you say, is based on unfair fromulas that have not been updated for years and that penalize people who earn what was once a rich income, but is now just a middle class income. If the EFC calculations worked in your favor (as I suspect) then I am happy for you. But the system is broken and needs fixing to accomdate the Obama economy that we will be living with for the next few years.</p>

<p>I’m not sure I know what you mean by “Obama economy”?</p>

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<p>It would only benefit the internationals since they actually have the money</p>

<p>“Obama’s Economy” are the trillions of dollars in deficit spending this government is pursuing that will bring about record hyperinflation in the not too distant future! </p>

<p>My daughter and I attended a college tour this past Monday at Franklin and Marshall College and the Dean told us that as of 2 weeks ago the college has decided to “do away” with merit-based financial aid. Needless to say, the parents in the audience were shocked and dismayed.</p>

<p>Everything I’ve been reading about this new “financial climate” and the class of 2014 has me very worried. The institutions have been very hard hit given the market drop and I find it very interesting that merit aid is being kicked to the curb. My daughter has been killing herself pursuing an IB program - not to mention expensive SAT prep courses - and of course, the obligatory “volunteer service” which isn’t volunteer, but mandated by the state. And for what, so parents and kids can hear sorry, we are dropping merit aid and keeping need-based to be more diverse in our student body, while the tour shows us the millions of dollars the school has spent on state of the art sports facilities and a mini-mall with luxury apartments above for juniors and seniors.</p>

<p>We’ve lost all the gains our 529s made and in my son’s case who is just entering high school the fund is BELOW the principal we started with and yet our “EFC” is at a staggering $32K - which is absolutely insane because I’m sure we will be expected to use what little equity we have left in house (property values outside Washington, DC have fallen 20% since last year) and “sacrifice” for the greater good of higher education which has gotten as fat as any AIG/FannieMae/Freddie Mac executive or Congressmen who have no understanding of how people are hurting.</p>

<p>Why aren’t these schools just lowering their tuition? Naw, that would be too easy and FAIR!</p>

<p>Trying to stay on topic regarding international aid, or lack of it from the OP. I work with many international medical students from Denmark and Sweden who pay NOTHING for their education. Ditto (at least currently) for Irish national students attending Trinity College in Dublin, to name a few examples.
There is no such thing as a free ride for ANY American student anywhere in this country based on citizenship in this country.
I am not sure which country you are from but this sounds like a pretty sweet deal to me.
I am looking at paying hefty price tags for my D’s education at US schools as a citizen so your complaints still ring hollow. She is very deserving academically, but does not qualify for any need based aid.
I think your expectations are unrealistic and with the enormous numbers of applications this year just getting admitted to a dream school with or without aid is quite an accomplishment</p>

<p>^ Eternal Ice #33: I think GoJumbo means the economy under the presidency of Barack Obama. The one that is in the tank now and has made more people unable to afford what they could have afforded last year. </p>

<p>Is it me, or have the Financial Aid forums here turned into a class warfare seige, where upper-middle class people and lower-middle class people are at each other’s throats? The local news had a thing on about how middle class can’t make ends meet, no matter if they are low or upper, and maybe the model that depended on the UMC always having the bandwidth to pay has collapsed so that more people are in the “can’t afford” category.</p>

<p>Don’t know, but it sure seems like there is a ton of frustration out there and a lot of people who are really angry and disenfranchised. Maybe that’s the Obama economy :-)</p>

<p>“Is it me, or have the Financial Aid forums here turned into a class warfare seige…”</p>

<p>It’s always been simmering, usually muted and below the surface, in discussions here.</p>

<p>I think two thing have made it worse: last year was an election year, and many politicians tended as they always do to promote class divisiveness to pander to their base- implying that because others make more than you, they must be screwing you somehow (as opposed to the “rising tide raises all boats” philosophy). And the current economic climate has made everyone on edge, and many who could afford an economic reach college last year, cannot this year.</p>

<p>What are people’s thoughts on students turning down schools like washu, northerwestern, gu( that are known to be stingy with their money ) and going to state schools due to the financial situation? go to state school now and private for grad school or something? lower matriculation?</p>

<p>GabbaGabbaHey-
I’m hoping that N&MsMom was right in explaining the “obama economy” reference as more of a future prediction. Because naming an economic situation after the person that inherited it, rather than the people that created it, seems just as unfair as high tuition costs.</p>

<p>We’re all going to get screwed somewhere between college tuition and health care costs. Anarchy anyone? Or we could all just jump ship and move to Western Europe?<br>
Hollow threats: even less effective than bureaucracy.</p>