<p>College A says it meets 100% of demonstrated need, but includes loans in the financial aid package. College B does not guarantee meeting 100% of demonstrated need, but meets some.</p>
<p>How do you know whether College A or College B has better financial aid in general? (Assuming that you're trying to compare before you receive the official package from either school with the monetary breakdown of how much loan money, how much grant money, etc.)</p>
<p>For example, say you need $15,000 in financial aid. College A could be giving you $5,000 in grants and $10,000 in loans, and College B could be giving you $8000 in grants and work-study. In this case, College A did meet 100% of need, but you have to repay $10,000 eventually; College B only met just over half of your need, but you only have to repay $7000 (from a private or other outside loan). So wouldn't College B have the better financial aid here?</p>
<p>Is there a general rule of thumb? Or is it still better to get loans in a 100% package from the college than to obtain loans from outside the college?</p>
<p>I think you really have to apply and see what they offer YOU. Different colleges can calculate need differently, and different schools will give different packages to different applicants.</p>
<p>The meet fill need schools are almost always going to do better than the meet partial need only schools. The partial need school is definitely going to include just as many loans in its aid package as the full need school . . . but it’s likely also to leave you with a significant gap that isn’t covered by the aid package at all.</p>
<p>Keep in mind that the only schools that don’t include loans in their packages are 100% need schools. Your partial need school will always include the maximum amounts of federal loans in its aid package.</p>
<p>The other thing to consider, as well, is that each school is going to calculate your “demonstrated need” differently. And schools that use FAFSA to determine need will also come up with a different figure than schools that use the CSS Profile to determine need. (The CSS Profile asks for a lot more financial info than FAFSA). Business expenses and non-custodial parent info are among the many factors taken into consideration by Profile schools that are not even looked at by FAFSA schools. So, depending on your circumstances, you might do much better at a FAFSA school that doesn’t meet full need (but also doesn’t look at certain things) than at a Profile schools that meets full need (but takes into account various circumstances that greatly reduce what it calculates your demonstrated need to be).</p>
<p>This is why you need to apply to a range of private and public universities. You cannot always predict merit and need based aid for each school. Merit aid in particular varies from year to year within the same college. Aid can also vary based upon minority status, your major, your gender, etc.</p>
<p>A college that meets full need endeavors to help students avoid the need for private loans, which are much more expensive. Hopefully, you can limit all of your borrowing to federally subsidized loans.</p>
<p>If you are afraid that your family’s financial situation may worsen while you are in college (such as another sibling entering college, a parent retiring, etc.), it is best to be at a 100% need met school. Those colleges are promising to provide more assistance if your situation gets worse. </p>
<p>In comparison, a school that offers large amounts of merit aid will not typically increase that aid as costs increase, and will not increase aid simply because your family’s situation has worsened. Those colleges are primarily concerned about attracting new freshman students with high stats, and are less concerned about helping out students who already attend. Some merit aid also may have tough requirements in order to keep the aid each year.</p>
<p>For example, say you need $15,000 in financial aid. College A could be giving you $5,000 in grants and $10,000 in loans, and College B could be giving you $8000 in grants and work-study. In this case, College A did meet 100% of need, but you have to repay $10,000 eventually; College B only met just over half of your need, but you only have to repay $7000 (from a private or other outside loan). So wouldn’t College B have the better financial aid here?</p>
<p>First of all, YOU don’t get to decide what you need. You may “need” $15k, but FAFSA and the schools may determine that you only “need” $10k or less!</p>
<p>Nearly all schools put loans in their FA pkgs. Only a few don’t…and some of those do put them in for those with better incomes. </p>
<p>Most schools do not meet need.</p>
<p>So…</p>
<ol>
<li><p>Use the NPC calculators on each schools’ site. Have your parents there so info is accurate.</p></li>
<li><p>Ask your parents how much they’ll pay each year.</p></li>
<li><p>Have a couple of financial safety schools…schools you know for sure will be affordable.</p></li>
</ol>