<p>I appreciated this interview I heard on NPR this morning and thought others might too. I hope its okay to post on CC. </p>
<p>I listened to it on my way to work this morning. I wish they will go a little bit deeper into the issues. I am on the same line that do not consider loan as a financial aid, particularly when the interest is not subsidized.</p>
<p>Now, all 7 of my current d’s fin aid offers have indicated clearly that some of those line items are loans. A few have big headings that say “Loans,” but I have had students tell me as recently as this fall that they don’t think they have loans, just “financial aid.” My employer cannot possibly meet need for most students, so I truly believe many students don’t understand what they’re getting. Something like spelling out an interest rate on the offer might help, but I don’t know.</p>
<p>I strongly disagree that half of schools practice bait and switch. OOP amounts do rise every year because tuition goes up, the cost of housing for upperclassmen is higher, and in some majors, course fees will be higher for upper division students. That is certainly not the same thing as enticing a student to come with a good offer and then yanking it away or reducing it significantly after freshman year. If the aid offers stay level, it’s not bait and switch (we could have a really interesting discussion, though, of setting the GPA to renew a scholarship at a high number). </p>
<p>Though, yes, there is bait and switch, and I really don’t care what the reasons for such thing to happen, I do condemn it and say, “shame” to those schools who have done this, (yes, UVA), it is part of the way things are done and have been done, that costs go up, students are expected to take on more of the cost, that upper classmen needs can be higher in terms of on campus housing, etc. </p>
<p>I agree that loans particularly PLUS should absolutely not be listed as aid, and be clearly so indicated so that the chances of misstaking it are small. </p>
<p>I also feel it’s not fair at all that the whole amounts of loans are considered aid and meeting need when it’s just the subsidy amounts of subsidized ones are anything more than what most any student can get to meet EFC when they don’t have need. The kid with no need can borrow that full $5500 freshman year to lighten the EFC loan when a kid with heavy need is often forced to give that up as part of his aid, giving him no leeway. I feel the same way about workstudy Very nice to give the kid $4K of WS towards aid, quashing his plans to work those hours to pay down his EFC. FOr the no need kid, it goes towards family contribution or into his pockets as discretionary money and the high need kid has to work towards his fin aid award. Doesn’t seem fair at all to me.</p>
<p>Of al the FA package we received, UIUC is the only one put $40k+ Parent Plus Loan as financial aid. We said thanks and declined the offer promptly. LOL.</p>