Reduction in Grant Money - Why

For all your students and parents out there that have or will be offered “grant” monies as incentive to accept an offer by a University of California campus, BEWARE. My daughter was promised $13,000 per year at a University of CA campus. We were straight forward and asked if she would receive $13,000 every year and what, if anything, could affect the monies. We were told only a raise in income over the thresh hold (which was $150k, at that time) would affect the grant. NOT true, sophomore year it was cut in half because she no longer lived on campus (the particular University she attended did not offer on-campus housing past freshman year). Then this year (junior) the grant went away all together because our other college student graduated. So, now she attends a college we can’t afford and never would have accepted had we known the truth. To add insult to injury, we did not find out until it was too late for her to apply for a transfer to another institution.

I’m very confused. You got a grant from a UC. You now only have one student in college…and have a $150,000 a year income…and you are wondering why you no longer have that grant?

With only one student in college…and a $150,000 a year income, your EFC per FAFSA most likely comes very close to the full cost of attending that UC. It might even exceed the cost of attndance. You would not be eligible for a grant with that income and only one student in college.

With regard to last year…what is the cost of attndance for students living off campus. It is too late to do anything now, but did you question this last year?

Is your income $150,000 a year?

FA always gets reduced when you have two kids in college and then it goes down to one. That is not unique to your school.

Grant is part of the need based aid. It is normal that the need would decrease when there is one less kid in college.

Was your older child who graduated attending school on a full ride?

Did you not understand that once the older child graduated then your EFC would go WAY UP??

When the first child was in college ALONE, did you not notice that your EFC was a LOT higher then?

When your child stopped living on campus, did she then live at home? In an apt?

How much were you spending each year on child #1’s college?

Transferring wouldn’t make a difference unless the school was cheaper (like a CSU commuter school)

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We were straight forward and asked if she would receive $13,000 every year and what, if anything, could affect the monies. We were told only a raise in income over the thresh hold (which was $150k, at that time) would affect the grant.


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When you contacted the school, did you mention that there would be two in college when younger DD went?

I’m still wondering why you didn’t realize that you’d have to pay a lot more once older child graduated.

If the school is given incomplete information they cannot give you an accurate answer.

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We were straight forward and asked if she would receive $13,000 every year and what, if anything, could affect the monies.
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Being straight forward means talking to a real FA officer, mentioning to that person that your income is XXX, you have 2 in college, your EFC is XX, and that the older child will be graduating in 2 years.

Did you do/provide all of that during the conversation?

That said, please realize that unless your DD transfered to a CSU that she could commute to, her costs would not likely go down with a transfer. With that income and one child in college, your EFC would be quite high.

What was your EFC when your older child was in college alone?

What was your EFC when you had two in college?

What is your EFC now that your younger DD is alone in college?

this is why our kids are chasing merit scholarships, not grants. Grants are nice, but we only would qualify when we have 2 kids in college at one time, just like you did. Hoping you can figure it out.

What was your EFC when both of your children were in college?

What is your EFC now that you only have one child in college

Your EFC is most likely still the same except that it is no longer being split amongst 2 children. Let’s say your EFC for Child 1 was $15k and your EFC for D2 was 15k. As a result you were able to get a need based grant for both children. Now that child one has graduated there is an expectation that the monies used to pay your $15k EFC for C1 would now be used to pay for child 2 thereby reducing your need for need based aid

I sent you a private message. Would love to learn more.

@FlipFlopGirl

Hoping you come back and answer some of the questions that have been asked. I can’t see any reason why this needs to be done via PM. Do it here where LOTS of people with different points of view can respond.

I do not think the the school did a bait and switch or anything nefarious. I think one of Op challenges may her lack of understanding about financial aid and doing her due diligence over the course of 4 years and the effect of having one less child in school. This is Especially true when you are looking at need based aid. Most schools will tell you that your package will remain relatively consistent as along as the other factors in your life are consistent; income, number of kids I college etc. however when you now have one less child in school the there is an expectation that once the child graduates it will free up more money ( since you are no longer paying for them to attend school) to contribute to the child (children) wha are still attending college.

You must also apply for financial aid every year. Minimally Op should have seen a difference in the EFC once they listed that they had one less person attending school. I also believe that when one is looking at financial aid one needs to consider if this is going to be affordable over the course of 4 years taking into consideration increases at approximately 5% a year.

I don’t think the concept of chasing merit vs need based FA may necessarily be the magic bullet, because every year there are threads from both students and parents over the loss of a merit scholarship making the school now unaffordable.

There will be different outcomes for different families. If you are a family who is not eligible for need based aid then yes, merit money may be best for your situation.

For other families need based aid may be the way to go especially if your child gets admitted to a generous school that has a no loan policy or the student oats nothing if the family income falls below a certain threshold.

Also, the OP mentions the student transferring? To where? Where would it cost less for this student to attend college unless the student was living at home and perhaps commuting to a CSU. It’s not like the student would have received more aid if she had transferred.

I’m also curious @ucbalumnus . Which UCs do not have on campus housing for second year students at all?

Many UC’s do not guarantee 2nd year housing for all students that want it, but it is available. 2nd year housing for UC Davis is definitely on a first come basis, especially anything on or close to campus.

Above was posted by the OP. She says this is a UC. Is there any UC that does NOT offer on campus housing to folks sophomore year and up? Any? I understand that it might be limited, but the op said “did not offer on campus housing”.

@thumper1, I am unaware of any UC not offering 2nd year housing for students. Perhaps another misunderstanding as with the financial aid. It would be very helpful if OP came to back clarify many of the questions prompted by her thread.

Maybe OP meant it wasn’t offered to her D (i.e. D didn’t win housing lottery).