Need based aid: Grants versus loans

Paying for College
1

OK, this is a question that has been bugging me for a while.

Say my kid is going to college in the fall of 2016, and we have an expected family contribution of say $15,000 per year. They’re interested in the state flagship college. What kind of split between loans (which need to be repaid) and grants (which do not need to be repaid) is common?

I’m sure this varies between colleges and probably is also impacted by grades, etc. But in the most general sense…how much does a state school provide in grants versus loans?

2

It varies from school to school. However, in my experience, your EFC would mean no grant aid … just loans and work study. Scholarships, if he/she qualifies. Use the Net Price Calculator on the college website - you’ll be able to find out about automatic scholarships based on grades.

3

Use the NPC (net price calculator) for the college that you are interested in for a fairly accurate breakdown. It is not a mystery for state schools.

4

The expected family contribution is not usually met through grants. The schools expect the family to come up with that money. The family can do so with loans, including the federal loans, but often the loans are included (and thus ‘used up’) in the financial aid package the school is already giving.

There is no ‘usual’ amount given. Some states, and state schools, give nothing. Some give it all based on grades, some give it all based on need.

5

And @moneyisimportant They do not have to meet your EFC. You could be gapped but the NPC is the place to start.

6

Thanks for telling me about the net price calculator. Didn’t know that was an option.

As I figured, at a EFC of $15,000 and income levels that support that EFC, all of the need based aid was in the form of loans. I had to drop the EFC and/or income way down to get any kind of grants to be included in the mix.

Thanks for your help. Appreciate it.

7

@moneyisimportant Some state school have generous aid but you need to apply early. When the money is gone it’s gone. What state are you in?

8

In general, state universities do not offer grants to the extent that private colleges do. Some states offer small merit scholarships based on stats. I don’t think you’ll find generic need-based grant awards like you would at a private school. I’m sure it varies widely, but just as a general rule…

That’s why many people find a private college is the same net price as the state flagship. But in general, if the student is in-state, the flagship should be reasonably affordable. Check the financial aid page of the university. Search for or click on Scholarships to see what’s offered and based on what statistics. My state has a $2000 grant for students going in-state that’s fairly achievable.

Ultimately, you have to visit your flagship’s website, as has been said.