<p>Any input from current or recent Hampshire students (or parents) would be much appreciated--</p>
<p>On Hampshire's website, they state that the loan component of the student's financial aid package will increase each year. From reading this statement, it appears that this will be the case regardless of the student's financial situation.</p>
<p>"The suggested loan level will increase each year as students advance toward their degrees. Students may decline the loan portion of their awards, but the Hampshire grant will not increase to compensate for the declined loan. Students who decline the recommended loan are not eligible for other kinds of Hampshire grant assistance."</p>
<p>Finances are going to play a large part in our child's college decision and we will have to plan ahead very carefully. Does Hampshire give you any indication from the start of just how much the grant aspect will decrease each year? </p>
<p>Like most colleges, Hampshire gives students a financial aid ‘package’ that together adds up to something similar to the difference between the total cost and your ‘Expected Family Contribution’, as indicated by your FAFSA data. The package consists of Federal loans, Federal & state grants, college need-based grants, college merit grants and student work-study salary (<a href=“https://studentaid2.ed.gov/getmoney/pay_for_college/award.html[/url]”>https://studentaid2.ed.gov/getmoney/pay_for_college/award.html</a>). The Federal direct loan program ([Federal</a> Direct Loans](<a href=“http://www.direct.ed.gov/]Federal”>http://www.direct.ed.gov/)) offers interest rate-subsidized loans (for the most needy families) and unsubsidized loans; in either case, the maximum amount of the loan increases each year. For unsubsidized loans, students can borrow $5.5K, $6.5K, $7.5K and $7.5K during years 1, 2, 3 and 4.</p>
<p>What schools seem to do is hold the total package amount the same, but the mix of grants/loans/work-study can change each year. So, as the amount you can borrow each year rises, some other part of your package decreases by the same amount. </p>
<p>Hampshire and similar private colleges try to meet the difference between tuition/room/board and your EFC. You just have to realize that this will mean something like nearly $30K in Federal loan debt along with everything else.</p>
<p>Hampshire students can be adept at maximizing their aid package. One way to do this is to get a non-work-study job, which does not count as part of the aid package. Resident Interns (RAs), lifeguards and some food service jobs do not count.</p>
<p>Thanks, ALF.<br>
At my two older kids’ schools, the balance between grants and loans remained pretty much unchanged (one has graduated, the other is a sophomore). I appreciate that Hampshire is up front about the decrease in grants, but I guess I’m just a bit concerned with just how much of a grant-decrease/loan-increase it will be each year – i.e. a change of 10%, 20% ? etc. Just so you don’t get the second year FA package and think “uh oh…”</p>
<p>That’s good to know re: jobs – I had no idea non-work-study jobs were even available.</p>
<p>I’m pretty sure that if your EFC does not change over the 4 years, the Federal direct loan will increase by $1K after the first year and second years, and stay the same after the third year ($5.5K, $6.5K, $7.5K, $7.5K). You should expect any Hampshire grants to decrease by those same increments after the first and second years. And, as they note, declining the Federal direct loans will not increase any grants.</p>
<p>We took out a Federal direct loan for our son’s first year, but then declined the loan after that. We also declined those loans for our daughter’s (so far) first three years. We decided that it was better for us to use our home equity line of credit, which has a lower interest rate and better income tax benefits.</p>
<p>When we had two kids in college concurrently, we qualified for financial aid, but now that we only have one, we no longer qualify at all. Our EFC = Hampshire’s total cost, which is tough for us to bear. Our daughter has a small Hampshire merit scholarship and she earns the equivalent of her board costs as a Residence Life Intern (RA). She also did a little lifeguarding, but didn’t really have the time between her classes, club activities and Intern responsibilities.</p>
<p>Thanks
I guess that’s not too drastic a change. Though $30,000 in loans is a bit intimidating - esp. since D has absolutely no idea what she wants to “major” in. If she gains admission, I would def. make a call to the financial aid office to discuss. Her brother is a sophomore, so for the first couple years she would get the sibling-in-college-at-same-time break. After that I’m afraid COA will go way up.</p>
<p>Something interesting on my aid letter that you might want to note:</p>
<p>“If your family’s situation remains the same, you can expect your grant aid to increase as we anticipate being able to provide minimal increases in renewal years. The loan component of the award package will increase each year as you progress toward your degree.”</p>
<p>So apparently grants will increase as well as loans? I’m not quite sure what to make of it.</p>
<p>Me neither, but thanks for posting. Considering D hasn’t even been admitted yet, I suppose I shouldn’t go nuts researching FA, but am just trying to get an idea of what we might be in for. Am starting aid applications tonight - and envying people whose kids go to FAFSA-only schools. The Profile takes me forever to complete :(</p>
<p>I think they are saying that both the loan and grants increase, as the COA increases. I am waiting to see how the second year FA package compares to my D’s first year.</p>
