Help Me Understand This FA Package and Scholarship Policy

Hi everyone,

I am a low-income, first-generation college student who is hoping to major in Computer Science and Economics at Northeastern University this fall. I recently received my Financial Aid Package and was pleasantly surprised by the amount of Gift Aid I received. I received $61,320 in Grants and Scholarships, leaving $8,807 as my net cost.

Here is where my confusion lies:

My EFC was calculated as being $3,100, which I found strange because my family is about as poor as they come and we have no assets. But, that is the number they calculated and I’m sure they’re sticking with it, so I can accept that.

First and foremost, I really don’t want to take out loans (I was offered 3,500 a year in FDS loans and $2,000 a year in FDU loans). But, I was offered Work-Study, so that shaves $2,200 off my net cost.

So I’m left with $6,607 I would have to pay provided that I do not take out loans.

Well here’s the kicker: I won a $25,000 outside scholarship ($5,000 for the first three years and $10,000 for my ultimate year of study) so I thought excellent, practically free tuition.

BUT: I don’t understand how Northeastern handles outside scholarships.

“Outside awards are considered part of your aid package, and in most cases will be applied first to unmet financial need, then to replace loans and/or work-study, and if necessary, to reduce institutional grants and/or scholarships.”

First, what is unmet financial need? To me, that’s $6,607 dollars because my family is providing me with $0, but I’m sure Northeastern defines it differently.

Please help me decipher this excerpt.

(If all else fails I’ll just have to work about 13 hours a week to pay my tuition, which isn’t that bad).

P.S. I don’t know if the period goes before or after the closing parenthesis so someone can clear my confusion on that too if you’d like lol.

First of all, congrats!

In terms of the outside scholarship policy, it means that that outside scholarship can replace those offered loans. Any extra amount will mean they will reduce the grant money. If all goes accordingly to plan, the breakdown would look like this:

Year 1:
Outside Scholarship: $10,000
Grant Aid: $59,020 ($61,320 - $2,300 remaining after replacing loans / work study)
Loans: $0
Work Study: $0
Total Aid: $69,020

Year 2-4:
Outside Scholarship: $5,000
Grant Aid: $61,320
Loans: $500 (subtracted the 5K)
Work Study: $2,200
Total Aid: $69,020 with $500 loans

Year 5 (if you stay for 5 years):
Grant Aid: $61,320
Loans: $5,500
Work Study: $2,200
Total Aid: $69,020 with $5,500 in loans (by this point CS savings could mean you can decline the loans and pay yourself possibly)

There are a few things that will complicate this, but generally it should go about like that. Some of the complications are good though :slight_smile:

Complications:

  • The Northeastern Promise means that your grant aid will increase at the same rate as tuition increases, meaning your net cost will barely grow over the years. Yay!

https://studentfinance.northeastern.edu/applying-for-aid/undergraduate/the-northeastern-promise/

  • These costs/aid per year don't consider co-op
  • When you go on co-op, your aid will be put on pause (still there) and your co-op pay should cover living expenses etc. Your outside scholarship won't though, so you'll have to work to see how that plays out.
  • Given that your outside scholarship decreases after year 1, you'll have to work closely with FA to make sure it's reflected in year 2 and you don't get left with a 5K gap. They should if asked but you'll need to be on the ball there in case they forget or it gets lost in bureaucracy.

Overall, it looks like the outside scholarship should mean that you will minimize loans, but won’t cover that $3,100 EFC.

You should talk to the aid office to explain the whole situation and see if they can let you take loans for the remaining 3K a year EFC and still give you the aid, or reconsider your package to fill the 3K gap, etc.

Hope that helps!

Taking out a small amount of subsidized federal loans should not b a problem.