<p>What does you fin aid award letter look like when your EFC does not meet need and your Profile takes into account your home as an asset and you will have only one kid in college and there are no others left at home. If the school is one that meets 100% of need and does not give out merit awards, what type of loan or aid will be included? Do they just send a bill and you have to figure it out?</p>
<p>Your FA award letter will look like this:</p>
<p>Dear future "Distinguished Alumnus*,"
We have reviewed your application for FA.
Your financial aid for 2007-2008 will be:
$XXX in gov't grants (often broken down into several federal and state grants),
$XXX in work study,
$XXX in loans (often broken down into different loan programs), and
$XXXX in institutional grants.
Total $XXXXX. Don't forget to send your deposit May 1st.
Sincerely, WeLuvU U.</p>
<p>In August you will get a bill for tuition, fees, room and board for Fall 2007. Half the amounts from the letter will have been deducted as if they were payments received already, except for work study. You pay the difference, or else. Same thing happens again in December for the Spring semester.</p>
<p>We can't answer your questions about home equity, kids in college, and types of loans without knowing a lot more detail, and you would get better info from some trial runs on the FinAid calculators.</p>
<p>*All letters after graduation will read, "Dear Distinguished Alumnus, ain't we got something come'n us?"</p>
<p>Thanks for your response.</p>
<p>Based on the Instituitional Methodolgy, I am responsible for the entire tuition. I was just wondering for myself (and others I am sure) who must pay full price to schools that do not give out merit aid, and where the chool meets 100% of need (my need equaling loans) what types of loans etc. do schools package for you?</p>
<p>Maybe I just need another cup of coffee, but your question is really hard to understand.</p>
<p>It sounds like you are anticipating a FA award consisting only of loans. You want to know what kind of loans you will get? Like how much will be Stafford, how much Perkins, how much Plus, how much subsidized and unsubsidized and so forth? </p>
<p>(I don't know the answer but maybe restating it for you will help get an answer.)</p>
<p>Jane, it varies from school to school. If your kid qualifies for some subsized loans, they will be offered. Also some states offer loan programs that may be favorable. The college may have money set aside for loans too. I have seen packages that include brochures that suggest some loans and other sources of money (insurance policies, home equity, etc), and they may mention specific programs by name, most notably PLUS loans for those who need help meeting their EFC. THere is no way to predict the composition of the actual financial aid package from a given college. You can guess, by looking at average package compositions which are given by USN&WR, but they are averages and may have nothing in common with your specific situation. By looking at a specific college's website, you can see what the list is at their disposal, including some of their loan sources. </p>
<p>There is enough variance even among schools that subscribe to the same methodology and philosphy, so that it is difficult to even guess what College B will offer when you have College A's offer in hand, and they are very similar schools using the same methods. That is why it good to have more colleges in the basket if you need money. It truly can vary significantly.</p>
<p>If your family is not entitled to ANY financial aid, Jane, you will get the brochure, nothing from FA. The brochure has suggested sources of loans and ideas, and everyone gets one.</p>
<p>Thanks, cpt. Do you know how many times you can make corrections to your FAFSA. I used wrong estimates by 20K and want to make changes now even before I get my W2's or taxes done.</p>
<p>When DS was applying as an incoming freshman, there was only one school that did not award him any money. His finaid letter was pretty clear. It gave the amount for an unsubsidized Stafford Loan, and a Plus loan if we wanted one. And that was all she wrote in terms of "aid". Included on a separate sheet was the estimated cost of attendance. This all came in the same mailing as his acceptance to the school (not always the case...sometimes finaid is separate).</p>
<p>
[quote]
What does you fin aid award letter look like when your EFC does not meet need and your Profile takes into account your home as an asset and you will have only one kid in college and there are no others left at home
[/quote]
It is all over the map and full of surprises. </p>
<p>FAFSA EFC is almost set in stone - not quite, because "Professional Judgment" allows financial aid staff to have some discretion as to how they treat extraordinary expenses and unusual circumstances -- but the formula is pretty rigid.</p>
<p>"Institutional Methodology" is just some private agency's suggested math, using software sold to colleges which the colleges can adjust any way they see fit -- meaning the college can choose to disregard the home equity, or cap it at some relatively low figure -- of fudge with the figures in some other way. </p>
<p>I'm a single parent sitting on bunch of California equity in a rundown tract home .... and basically I have had 2 kids in succession manage to get very generous need-based financial aid awards that left me with my mouth hanging open in shock, but they also accumulated "awards" that weren't worth the paper they were written on. </p>
<p>It's a gamble, pure and simple. Among the elite 100% need schools, the higher on the totem pole in terms of selectivity, the more generous the schools often get -- it has a lot to do with the size of their endowment. But a kid with strong stats might definitely do better with merit aid at a somewhat less selective college.</p>
<p>As to making changes to your FAFSA, there is no limit to the number of changes you can make, but there is no point in making changes unless you are expecting an early award from an ED school. The college is going to make its decision based on the last FAFSA you have filed as of the time that award are given out. If the college promises to meet full need of all its students, then they will increase awards if the numbers support a change -- they decide what "need" is, but they are generally consistent about their own internal policies and formulation.</p>
<p>Go on ahead and make your changes. You can change as many times as you want. As a family who has not gotten a dime of financial aid, I can tell you that all we ever got were informational brochures and sheets from school that have lists of possible loan sources. I know that when we went to orientation a UBuffalo, there was a parents' meeting for those who needed aid, and I spoke to a couple of parents who got no aid, but were close to the cut offs. They brought up their situation at the workshop and were asked to meet later with the fin aid officer, who did come up with some money for their kids, a big welcome surprise. They also gave some paper handouts with ideas, suggestions and loan sources. But you are not going to get a lot of attention if any from financial aid unless you go in there yourself, if your numbers come up a goose egg.</p>
<p>I cannot begin to express how appreciative I am of all of you on this site. I have learned so much in just a few short months. We have applied to a few Ivies and other top schools that do meet 100% need. I do fall in the category of EFC that matches the cost of the school therefore I am expecting little to no grant money, but am hoping that her application will catch the eye of the adcoms who may want her enough to throw her a bone (wishful thinking)! She has applied for some outside scholarships and are waiting to hear from them. Don't mind taking out a few loans to finance the cost. Will think heavily if mortgaging the house will be worth it...depends on the school and opportunities it provides.</p>