Is it fair to give students full-ride need-based aid?

<p>I go to a school that costs 60k a year. So about 240k over 4 years. </p>

<p>There are a few kids who don't have to pay anything.</p>

<p>On the other-hand, there are kids with no aid who end up transferring or taking out big loans. Many of these people who are "too rich for aid, but too poor for college" can't afford to go to these expensive (often elite) schools.</p>

<p>Why do I have friends with no aid transferring or taking out 30k per year loans when I have other friends who are paying nothing. And although this is a generalization, these kids with "no skin in the game" tend to underperform others.</p>

<p>Shouldn't everyone have to pay at least a little? Make the guys with full-rides pay 10k and give it to the kids who can't go because what parent wants to pay 240k on an education</p>

<p>Well most need based scholarships are not full rides. They cover full need and not many institutions promise this to low income students. By full need I mean if the kid’s parent(s) get paid a meager 15k-50k a year, they would probably be responsible in coming up with around 3k in summer earning and around another 3k in work study. Possible another 3k for books, insurance, laptop, and travel costs. </p>

<p>I do think that middle class students should also get better financial aid but unfortunately schools are too greedy with their endowments to expand financial aid to more students in need. Most unis rather use their endowments to build fanciers building instead of expanding aid. In general, the purpose of meeting full need is to get kids from all socio economic backgrounds. </p>

<p>To answer your question whether it is fair or not, I guess that can be answered by personal opinion. I think its a good idea. A lot of students think that just because their parents make very little money that they will never get a shot at a top uni because of the cost. With full need met, they will be able to attend a top school for only about 5k-12k a year. </p>

<p>Cheers!</p>

<p>Most schools do require students to contribute “something”…often thru a summer work contribution, work-study and/or student loans.</p>

<p>The problem is that if the policy were that anyone with parents who won’t pay get financial aid, all of the parents would say they won’t. That is what happens with every entitlement program. Because there is a 5 year look back period for Medicaid and nursing homes, for instance, people incorporate that in their planning, transferring money out. Because student assets are assessed at 20% and parents only at 5.6% for FAFSA and many other financial aid calculators, people make sure as little as possible are in the students’ accounts on the day FAFSA is filed. So the only way to squeeze the money out of those parents who CAN pay is to really truly have the policy that their kids don’t get money at certain schools if they don’t pay when the numbers say they can. </p>

<p>The way it works right now, most people feel that the cut offs and the way the EFC works for FAFSA and financial aid, in general, for even the more generous schools, is that the formulas still ask for too much from any and everyone. There are very few students and families who don’t have to pay anything. Maybe they aren’t paying anything now. But most fin aid packages have self help and include loans and work study. Very few 100% grant packages out there. I am not at all envious of the 99.999999% of the full need met awards that low income families get. It’s often still a stretch for them. </p>

<p>It is a small nice of students who have parents with the wherewithal to pay who won’t and who also go to a school that would have given them a full ride had they come from families that could not pay. I’m not going to deny that this niche does not exist, and it is very unfair for those kids, but not as unfair as many other life situation that I’d want to address first. These are private schools that cost in the $60K a year range, and they can do what they please with their money. Did you expect private high schools to be run this way too? It all comes down to the parents.</p>

<p>If it ever comes down to it that a challenge is won where it is indeed illegal to be hamstringing adult students under the age of 24 to the parent’s financials, this whole house of cards would fall, IMO. What 18 year old can afford to pay for college on his own, even the state schools? Some, but not enough to support the system. Certainly not the $60K+ schools. Take the parental assets and income out of the picture and nearly everyone would be eligible for financial aid. Bring the whole business to bust. And it is a business, bottom line.</p>

<p>What school requires NO contribution from students?</p>

<p>Every single one I’ve heard of requires contribution either from work study, summer job, etc.</p>

<p>ETA: It appears you go to Northwestern. I put in the data for a family of 3 with parental income of $20000 and 0s for everything else and this is what I got: </p>

<p>Estimated Net Price: 4840
Student Work: 2500
Estimated Cost Remaining: 2340</p>

<p>Doesn’t seem that even VERY low income kids are contributing “nothing”</p>

<p>I realize that things like summer contribution end up going towards travel, personal expenses, etc, and not directly to the school, so maybe that’s what the OP means.</p>

<p>@mom2collegekids, summer contributions usually do not go to travel costs. Students are usually expected to pay travel costs+ the summer tuition/room and board contribution amount.</p>

<p>I know someone who is getting paid extra because their off-campus housing is cheaper than the dorms</p>

<p>OP, I made money my first year at college a long time ago. But it is increasingly difficult to do this as colleges integrate awards. I know very few students who don’t have to pay something towards their college unless they got some full ride award, not financial aid. Your parents can borrow up to the official Cost of Attendance less any other awards, and if you live off campus for less than the dorms, yes, you can get make out some that way. Cheaper books than the average number in COA, again you can “make” a few bucks. But I don’t know any school that is so generous that it gives the full in COA in grants as financial aid.</p>

<p>They’re not getting “paid” extra- they’re using financial aid to their advantage. If the FA package doesn’t change then it’s worth it to find your cheapest option. </p>

<p>Northwestern is a private U and may do whatever it pleases with its funds. Keep in mind that only a handful of poor students are getting anywhere NEAR a sweetheart package like this. Most get Pell and nothing else in free money.</p>

<p>You are targeting your concern in the wrong direction. It’s perfectly “fair” for a fancy, rich, private college to give charity to underprivileged students. </p>

<p>If anything’s unfair, it’s the outrageous sticker price increases these schools have applied over the past 3 decades. However, as long as there are people willing to pay any price to attend these “window sticker” schools, the prices will continue to increase.</p>

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<p>If you go to the net price calculators of many “meet full need” colleges and put in hypothetical information that gets maximum need-based financial aid, you will typically see a non-zero net price which is a student contribution of $4,000 to $10,000 per year.</p>

<p>True full rides with no student contribution tend to have some merit component (which may be automatic for grades, rank, and/or test scores, or competitive; the automatic ones are sometimes included in net price calculators that ask for grades, rank, and/or test scores). That, or the school is some sort of special case like a military service academy (where the student contribution is military service after graduation).</p>

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<p>Frugal students can certainly underspend the standard student budget for the school, whether or not they are getting financial aid or scholarships.</p>

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<p>LOL It’s more like too middle class for aid. Tough cookies if the severely middle class feel like they should be able afford a pricey private U and then run into difficulties. Their difficulties have nothing to do with the kid who is poor enough to get the max aid. Their grouse is with the pricey private U not giving them free money. Sheesh! There is no unfairness.</p>

<p>Also remember that any scholarship monies over the cost of tuition, books and fees is taxable income for the student. At the end of the day, no one is totally going to school for free.</p>

<p>*@mom2collegekids, summer contributions usually do not go to travel costs. Students are usually expected to pay travel costs+ the summer tuition/room and board contribution amount.
*</p>

<p>Not sure what you mean by this.</p>

<p>A full need student who is given a “student contribution” (summer earnings expectation) and WS often uses the money towards travel and personal expenses - which are part of COA,</p>

<p>@mom2collegekids, I meant most unis do not just expect you to raise just the 1000 needed for travel. Total COA includes travel so I think I misunderstood your post, my bad.</p>

<p>I know someone who is getting paid extra because their off-campus housing is cheaper than the dorms</p>

<p>I don’t know if your school puts loans in the FA pkgs, but if it does, then that money that’s being returned to the student may be borrowed money.</p>

<p>The way it works is that a student can get financial aid and access to certain loans UP TO the COAs set by the schools. Certain things are fixed, like tution and fees (and even they could vary if there are differences in those charges within school of a given university) but other things are not. If you get a triple, you can “beat” the averages used in the COA. If you don’t pick the average meal plan, and buy and prepare your own food, you can go under in that regard. If you live outside the country or somewhere that costs a lot to get to the school you are over the avearages used. If you live in the area, again you go under. With off campus housing, yes, you can beat univesity prices. There isn’t the time and money to scrutinize each person’s expenses. A composite number or numbers are used. </p>

<p>So, yes, in that sense, you can “make” money off of a financial aid award. But that rarely happens since even schools that are the most generous have self help and required student contributions in the mix. If you want to borrow money up to the fin aid award, and pocket it, yes, that’s possible. But you do have to pay it back in the end.</p>