How Do Schools Give out Financial Aid

<p>We've seen several financial aid packages now, and I've read of several others on these forums. So does anyone really know how a school decides who to help a little, and who to help a lot? Are these decisions separate from admissions? This is where I'm confused. I take it to mean that the student left with a $20K gap is less desirable for some reason, or does not show enough interest in the school....but is that it? </p>

<p>I'm not asking why one school gives more than another, necessarily, just why it fills large gaps for some students and not others. We've been on both sides now (gap filled, large gap left) and I'm curious.</p>

<p>Most often, it depends on how much money the school has to give out. Some schools give more to those they “want,” but most schools give based on EFC to maximize the number of students they can help. School A might not have money to give out, but school B might have some grant money … so you might get more at B than at A.</p>

<p>I do understand about getting different amounts of money from School A or School B. (or Schools CDEFGHIJKL…as in our case, LOL) I just find it odd that there are such large differences within, say, School A itself. </p>

<p>School A shall remain nameless, but it left my child with a large, large gap between EFC and aid, almost $20K - and I just read on the forums that School A gave nearly “full rides” and very generous aid to many students. I know this happens all the time, to many students at different schools A-Z, but I just wondered if anyone knew why such differences exist within the same school.</p>

<p>I understand too that School A can easily meet “full need” for a student whose EFC is much higher than mine and closer to the COA. But I’m talking more about comparing apples to apples - a School A giving large grants to some and not to others in similar financial situations with similar EFCs and stats.</p>

<p>On the flip side, we have also been the lucky ones at School B, receiving more aid while others are unfortunately disappointed.</p>

<p>I wondered if it’s because of demonstrated interest, or because other students simply fill a need better.</p>

<p>* I take it to mean that the student left with a $20K gap is less desirable for some reason, or does not show enough interest in the school…but is that it? *</p>

<p>You cannot assume that a student left with a $20k gap isn’t desirable. Many schools do NOT have the money to give even a desirable student a lot of money. A desirable student with a low EFC (say $6k) that is beyond Pell may be gapped $20k+ at a school that costs $55k, but the school gave the student as much money as it can afford…about $20k (times 4).</p>

<p>I sure wouldn’t say that a school that will give a student $60k-80k towards college costs is undesirable. </p>

<p>Most schools do not have a lot of money to give away. Period. It’s not personal.</p>

<p>As I just saw noted on another thread started by someone who received an award larger that they expected this reminder/explanation: some schools may have pots of grant money which are tagged for specific populations. It could be URM or women in engineering or men in library science, those interested in studying Norwegian or any number of other combinations that some benefactor or the institution itself wanted to foster. Your kid might fall into one of these categories at one school and not at another.</p>

<p>I can tell you how one school that meets most but not all need operates. Students applying there are accepted on a need blind basis. Financial aid and admissions are in separate buildings and they claim they do not talk to each other unless they have to do so after an acceptance. </p>

<p>The applications are perused and assessed with no knowledge of whether or not the student is asking for fin aid since only relevant data is given to the admission counselors who do not look at the actual app but a summary of it. When the decision is made to admit, if the student has checked the fin aid box, the name goes to fin aid for a package to be put together for the student. Admissions, however, does not just check “accept”. They give the applicant a grade. Don’t know the scale, but let’s say that “A” is the top grade and indicates a candidate the school really, really wants. </p>

<p>When FIn aid gets the accepts, they put together the best packages for the "A"s. SOme of them may already have been awarded merit money which is given by admissions, not fin aid at this school. But the A’s will get 100% of need met and without any loans or self help. THese are the crown jewels of the applicant pool. The B’s will also likely get full need met, and if there is enough money, they may also get all grant packages. No scrimping for those categories. When it comes to the C and below, fina aid will often practice enrollment management, making sure they get enough kids that are likely to come–have need met, and that they get the most for their money. If your kid is at the tail end of that scale and has high need, he will not get full need met and a lot of his package will be loans and a referral to PLUS and private lenders. When a call comes in to discuss financial aid awards from the recipient, his internal grade will also determine what options are available to him. An “A” candidate whose family has had a sudden down turn in events is more likely to get additional funds than the “C” and if lower than that, there are no grants to give.</p>

<p>Like Admissions, FA office also has targets and overall profile they are trying to meet. If you a school that does not offer sports scholarships, but the coach thinks you will be an asset to the team, the FA package may be more attractive then a person with more need but not a sports person.</p>

<p>Carnegie Mellon is pretty open about how they give financial aid. (Other colleges do something similar but are not as open)</p>

<p>[Admission</a> > Principles and Practices](<a href=“Home - Computing Services - Office of the CIO - Carnegie Mellon University”>Home - Computing Services - Office of the CIO - Carnegie Mellon University)</p>

<p>They are clear that they use statistical techniques and try and to find the optimum between multiple criteria. Does that mean that one candidate is not as desirable as another. Not really. For example, if they have only one qualified candidate from Wyoming, and they have 4 trombone players, they may for diversity purposes, make the offer very attractive to the WY student and then try and do the best with remaining funds. So it is not really an apples to apples comparison. </p>

<p>They do not rank the accepted candidates in order of preference, and then start giving aid to the one on top and no aid to the one on the bottom. Some on the students with strong profiles (higher end of admission spectrum) may not get as good aid as someone at the bottom, even though they have similar need. Their are other factors that come into play. Financial Aid has many exceptions and is unpredictable.</p>

<p>The only way that student (and their parents) can protect themselves is to apply to many schools. One school may have too many art history majors with need and another may have too many trombone players with need. Not as simplistic as I am making it, but I think you will get the point.</p>

<p>I think the problem is the OP thinks that her child is being insulted by being gapped. That’s not likely the case. The OP’s D has a lowish EFC (but beyond Pell). It’s very hard for an expensive school that doesn’t meet need to give a ton of aid to a student with a lowish EFC. </p>

<p>Even if the student’s stats are within the top 25% of the school, that’s still a LOT of kids to offer big FA packages to.</p>

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<p>That is right, I do not think that any FA office wants to turn away or insult any prospective student, but given the limited aid, they need to make hard decisions. They know that some students will not join as result of the FA and they take that into consideration.</p>

<p>Here is a reserach paper on the subject</p>

<p>fie-conference.org/fie2007/papers/1284.pdf</p>

<p>Schools that gap often are need blind. So they accept everybody they want and then have to come up with the money. The core "must haves’ will get full need met and at many school even if they have no need, they will get merit money to entice them to come. This is called enrollment management, where a school would rather give $10K to 5 kids that don’t need it and can easily come up with additional $40K in cost but the money plays a strong role in picking that school for that savings since it means a sizable windfall, rather than the full $50K to just one full need student who is going to be struggling with money issues anyways most likely.</p>

<p>There are schools that put together “preferential packages” for students that they really wish to have attend. That could be a larger package or more grants v. loans v. work study.</p>

<p>Also, when you read about other students’ “packages”, there are two things to keep in mind:

  1. Many people do not differentiate between financial aid and merit aid. One is need-based and the other is not (although at some schools even merit aid has a need component). Yes, the students that the school wants more may get the merit aid.
  2. What other financial information comes into play. What the kids say that their parents have and what their parents really have are two different things.</p>

<p>*School A shall remain nameless, but it left my child with a large, large gap between EFC and aid, almost $20K - and I just read on the forums that School A gave nearly “full rides” and very generous aid to many students. *</p>

<p>Do you know if those “nearly full rides” were all need-based? Perhaps these kids got merit based aid for very high stats? Are any NMFs? </p>

<p>If these schools do not “meet need”, but did meet need for a few students with lowish EFCs then they may have really high stats…particularly high M+CR scores. Many schools do not consider the Writing score for merit. So, if the student’s M+CR is a 1430+, they get more merit or better FA pkgs.</p>

<p>Without knowing details, we don’t know if these other kids are majoring in depts that give awards as well…or maybe the students are URMs and there are funds for those kids.</p>

<p>Great insight, everyone, thank you.</p>

<p>I am the original poster. Sometimes I’m a little afraid to post on CC because what I said may be taken the wrong way or twisted out of context. But it’s worth it in the end, because I have really learned a lot on here about the college process for my 2nd D, the current senior!</p>

<p>I didn’t start this thread because I was insulted about the gap that was left at one school for my daughter. Puzzled, might be a better word. After reviewing several packages for her that were all over the place (from good to bad), I now see how wildly variable financial aid can be, even for similar EFC students at the same school. But many of you offer some interesting insight into the process. Thanks! As always, I learned something new on CC today.</p>

<p>It is variable. Shockingly so. I knew a young lady who applied to a batch of schools that all supposedly use the same financial aid methodology and the estimates were pretty wide. Throw in schools not in that group and it was all over the place.</p>