Outside scholarships and financial aid

<p>Do outside scholarships do anything to reduce the amount billed to a student (tuition, room, and board)? The MIT website says, "We encourage undergraduates to seek as many outside awards as possible, because we let you use these awards to reduce the self-help component of your aid package."</p>

<p>But I'm still confused. :-( </p>

<p>If an MIT scholarship was 43,500 and tuition, room and board was 53,400, then a student would be billed 9,900, correct? How can the outside scholarship reduce that bill?</p>

<p>Also, how does work study reduce that bill? </p>

<p>Thank-you.</p>

<p>At every university, a financial aid package is created from several sources: student loans, student employment, scholarship and grant assistance. Need-based loans and work-study are referred to as the self-help component of an aid package. It is called “self-help” because it is the student’s financial contribution toward the cost of attending MIT. </p>

<p>Let’s say the “self help” portion of your son’s financial aid package is $10,000. This means your son will need to work a certain amount while at school and he will also take on a certain amount of debt. Let’s say that he will need to earn $2,000 through work and take on $8,000 of debt.</p>

<p>If he receives an outside scholarship, MIT will reduce the “self-help.” Thus, if he receives a $3,000 outside scholarship, the self-help might be recalculated this way: $2,000 through work and $5,000 of debt. It’s possible MIT eliminates the work first – not sure.</p>

<p>In all these calculations, MIT comes up with a number it believes you – the parents – can pay. That number won’t change as a result of these calculations. But if your son’s outside scholarship reduces his debt from $8,000 to $5,000 and you feel you can’t afford the difference yourself, you and he might sit down and talk about whether he would be willing to take on a higher debt load (through private sources) to reduce the amount you would have to pay.</p>

<p>In our family’s case, I feel MIT calculations were correct. It was painful. We didn’t think we could afford to pay for everything, with no aid. But in the end, MIT was right – we could afford to pay it (even though we still need a new roof!) and the cost was well worth it, in terms of the opportunities available to our daughter. </p>

<p>sbjdorlo, I thought I read in the Parents’ thread that your son had been unable to attend CPW and had elected already to attend Harvey Mudd. If not, and money is the issue, I hope you’ll follow up with MIT’s Financial Aid Office to get official answers to your questions.</p>

<p>calalum,</p>

<p>Ok, I think this is starting to make sense. <em>Our</em> EFC will never change unless there are extenuating circumstances (medical bills, job loss, etc) but outside scholarships can effect what our son would be asked to pay/borrow. </p>

<p>Thank-you, we will contact financial aid again; they were very helpful.</p>

<p>Yes, my son was unable to attend CPW (was at Princeton) but he was at MIT last fall for a program for three days and got a taste of MIT life then.</p>

<p>Yes, he loved Mudd but he has not made a decision yet.</p>

<p>More info on what your son could expect to earn while at MIT.</p>

<p>(Caveat: my daughter graduated spring 2011, so maybe the hourly rates are higher now…current students could confirm).</p>

<p>My daughter worked at least one semester per year each of the four years, and she worked at paid UROPs each of the summers. Overall, her gross earnings were around $5,500 per year. That’s low – it would have been higher had she taken a paid internship with a corporation during the summer after her sophomore or junior year. So altogether, her gross earnings were around $22,000. She had to pay room and board during the summer, and the cost was around $2,000 each of the 3 summers (cheap boarding in the local frats helps quite a bit) per year. So her overall net earnings were around $16,000. Additionally, she lived in Burton-Conner and cooked her own meals. This also saved a surprising amount of money – perhaps as much as $2,000 per year. To sum up, she contributed a net amount of about $24,000 to the cost of her education this way. She had additional outside scholarships which brought this number up to over $30,000.</p>

<p>She has several friends who had taken jobs right after graduation, and because I’m very close with the mother of one girl, I can say that after one year of work, she has completely paid off her $18,000 student loan. </p>

<p>Just some things to consider.
:-)</p>