Need-based scholarships

Parents Forum
1

<p>My S received a substantial need-based scholarship for freshman year. When he asked whether it would continue (as do the college's merit scholarships) he was told that his need would be reevaluated (along with other criteria for the scholarship) when he applied for financial aid the next year. Since the college is cutting costs, including some academic-related costs, but is not cutting financial aid, I'm wondering if this fantastic "scholarship" is a teaser. Thoughts?</p>

2

<p>You need to post the name of the college, in order to get responses from parents who have experience with FA at that college. You may want to post his question on the Financial aid forum and the forum for that particular college.
In general, you DO have to Fill out the FAFSA form each y.ear your child is in college in order to continue to qualify for financial aid.</p>

3

<p>I probably should have asked what parents have done to compare need-based scholarships and merit scholarships in considering financial aid as a factor, since my S also has two FA offers with 4-year merit scholarships that result in a COA that is within a few thousand dollar range for the three colleges. I know alums from this college and the parent of a student but I’m not certain you can predict the future based on the past in this new economic climate. Thanks for the suggestion.</p>

4

<p>Well, most colleges will not consider merit based scholarship awards from other colleges AT ALL, in an appeal of their FA calculations. They will only consider other FA awards, and “peer” colleges- for instance Dartmouth and Brown, will only consider “matching” an FA awards from other “peer” colleges. I went through that 3 years ago. Son was awarded Full tuition merit scholarship at one U, and colleges wouldn’t consider that scholarship award in their recalculations of FA $.</p>

5

<p>Questions to ask:

  • Does the need-based award meet full need, as the college defines it?
  • If so, does the college promise to meet full need for all 4 years?
  • Does the college have specific limits on the amount of loans it requires from its students as part of a need-based package and, if so, what are those limits?
  • How much does the college require of all students to contribute from their own earnings, and how will that amount change (increase) over each year?
  • What, if any, are minimum scholarship and progress-toward-degree requirements to maintain financial aid eligibility? (Even if the award is based wholly on need, many schools require the student to maintain a minimum course load and at least a 2.0 GPA - they aren’t going to subsidize a failing student).
  • If you anticipate any major changes in income over the next 4 years, or in your family status (such as a sibling entering or leaving college) – how will that impact the award? </p>

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<p>Generally if the college promises to meet full need for all admitted students, or for all students who were granted full-need award the first year --then you should be fine. All such schools will require that the student reapply each year, because need is always evaluated on an annual basis. Some kids who qualify for generous aid their first year might not qualify in subsequent years if, for example, a parent gets a promotion or new job with a significant increase in salary, or if the family gains significant assets, such as with an inheritance. (Grandma dies, you inherit $500,000 after her house is sold, put it in the bank— oops, there went the Pell grant…)</p>

6

<p>The problem with merit scholarships is that they often require to maintain a certain GPA. Sometimes it is reasonable (3.0 or so), but even that is a struggle for some students. Sometimes it is completely unreasonable (I’ve heard of scholarships requiring 3.8 GPA). That is a risk that is not worth taking if the ability to attend depends on that scholarship. Even if the student is capable of maintaining that GPA, the stress it creates is not worth it.</p>

7

<p>Thanks. The merit colleges with substantial awards have realistic GPA requirements so that isn’t an issue in comparing the three. I’m more comfortable with a need-based scholarship after getting all the input.</p>