Financial aid "sophomore slump"

Parents Forum
1

<p>I'll just post what I wrote in the "Say it here because you can't say it directly..." thread, because it's a good enough summary:

[quote]
Dear Office of Financial Aid,</p>

<p>My family had a lower income and higher (unavoidable, not frivolous) expenses this year than last. Last summer, my parents' work forced my family to relocate to a city with a significantly higher cost of living than where we lived previously. My mother has no guarantee of employment past July. We have a mortgage and no savings. Our cars are from 2001 and 1994.</p>

<p>So what would ever make you think it was acceptable to reduce my grants by $2,000 per term, a $6,000 increase in our family contribution for the year?</p>

<p>I had to take out a $15,000 loan just to pay for freshman year. On campus, I work 10 to 12 hours every week. There is no money here. There never was. What more am I supposed to do?</p>

<p>With all due respect, I ask you to reconsider.</p>

<p>Cordially,
E.

[/quote]

Did anyone else experience a drastic reduction in financial aid sophomore year, even if your family's financial situation remained the same or worsened? How did you cope with it?</p>

<p>My parents are filing an appeal; does anyone know the success rate for those?</p>

<p>If the award had been the same as last year's we would have managed -- it would have been difficult, because we're worse off this year, not better, but if we stretched we could have -- but I really have no idea how we are supposed to pull this off.</p>

<p>My loans max out at $15,000 a year; if I were to borrow more, it would have to be on significantly worse terms (current loans are 2-3% interest over 25 years)... and given that I'll already graduate $60,000 in debt for a bachelor's degree in the social sciences, taking out more loans is a terrible idea.</p>

<p>Thoughts? Advice? Reassurances? Creative fundraising ideas?</p>

2

<p>Cam,</p>

<p>Does part of you increase also take into consideration an increase in your EFC which will increase slightly each year? </p>

<p>Just contact the FA office. They are a very amenable group of people. Explain your situation, show them any documentation to to back up what you think they may have missed or not taken into consideration and they will work with you.</p>

3

<p>Many schools do the bait and switch to kids, unfortunately. I've always told folks who got unusually good packages from a school that does not on average offer such goods, to check with the kids there what future financial aid package are in comparison to the first year's. However, most schools do start cutting back on the packages, each year with more emphasis put on the student taking up more of the responsibility to pay. And so they should as they get older, with summer and maybe school year jobs, and more loans. </p>

<p>I agree that $60K in loans is too much for an under grad degree in the social sciences. I don't know how much of the decrease in your package is due to your becoming a sophomore, the emphasis the school has in attracting freshmen with their FA funds, and what your new EFC is (institutional). That your mother does not have job prospects past July is not going to enter into the equation as this years awards are based on 2007 year numbers, not on prospective 2008. Also cost of living is not taken into consideration at all. This has been a big issue in our area as housing costs are far, far higher than in many parts of the country, and yet this not reflected by FAFSA or PROFILE. We all suffer from that issue if we live in a high cost area.</p>

<p>When you mother's job ends, you can bring that into the picture. FA offices are not big on what is going to happen, or may happen. It has to have happened. I have seen adjustments made on aid when family members become unemployed during the school year despite the fact that the award uses prior year numbers. Schools do understand that the loss of a job is going to affect funds that were earmarked for tuition costs. If you cannot reach any type of agreement with the school, you may want to look at lower cost alternatives, such as state schools where you family now lives. That is indeed a large amount of debt.</p>

<p>Sybbie, good to see you. Am Pming you with a question that is OT.</p>

4

<p>cpt,</p>

<p>I got your PM and responded.</p>

<p>Cam,</p>

<p>If I remember correctly most of the 60k that you will be taking out in loans is due to your paying or taking responsibility of the EFC yourself because as an international student you are not eligible for stafford loans (or splitting the cost with your parents as Dartmouth has meet your demonstrated need).</p>

<p>Dartmouth is pretty above board with their FA policies and in our experience in my D's 4 years in Hanover is that the FA package has remained pretty consistent year over year with our income (our EFC did increase with income and D did have a larger slightly EFC each year because there was an expectation that she would work over the summer). Do you think there is any thing that the school has overlooked? I know that your family has moved from DC to NYC over the past year. Are they paying for high school for your younger sister? Did they include these costs when you reapplied for FA.</p>

<p>Cpt is right that your 2008-2009 package is based on your 2007 income and assets. When your mother does officially become out of work, that would be a change of financial circumstance which probably won't be visited until next year. If your mom does actually loose her job at the end of the month, any severance she gets will be considered income.</p>

<p>As I stated in my previous post, call them. They are very easy people to work with. If you explain and show documentation for your situation, they will revisit your package.</p>

5

<p>Also, Cam, changes in living expenses and accumulated debts are not included in financial aid calculations. It is tough when rent doubles and cost of transportation, insurance, groceries increase, but none of the schools take that into account. Also, are you working over the summer and meeting your EFC? If you cannot work due to international student status, is that an issue that the school knows? Sybbie seems to know those involved in going over the numbers with you. IT's better to deal with them directly.</p>

6

<p>Please let us know how this comes out. Good luck.</p>

7

<p>My d's sophomore aid package was less than her freshman package and our EFC was LOWER due to another child in the family attending college. Her package went from meeting 70% of need to meeting 40% of need (approximately). I wrote a letter asking for a review--basing my concern on the drop in percentage of need met, not dollar amounts--and her package was redone with a substantial increase in grant money. Although I felt this was a bait and switch type scenario I did not get into that in my appeal. I simply stated that, as a consumer, one would have a REASONABLE expectation that the percentage of need met would be level from year to year--assuming there was need. I also listed the packages my other two children received and their cost of attendance.<br>
I don't know if any of this helps you, but it does pay to appeal. I felt I had nothing to lose...
Good Luck!</p>