Report: Financial Aid Process Is Too Confusing

Paying for College
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<p>My school offers workshops for filling out FAFSA (many dates, not just one or two), budgeting workshops, general financial workshops, etc. We get very few students. One thing we are trying this year if we offer workshops for students on financial aid probation that focus on academic success & loan issues (amount, payback, etc). While not mandatory, we make it clear that attendance will help if a student files a SAP appeal in the future (demonstrates willingness to try to get back on track academically). Some attended, and some who did attend thought it was beneficial. Unfortunately, quite a few signed in, attended for a short time, and left (so it looked like they were there …). You can lead a horse to water, but you can’t make him drink.</p>

<p>And sorry … but I don’t feel it is the role of any college to teach people to fill out their income tax forms.</p>

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<p>Hey, it’s confusing. I don’t think any demographic thinks it’s not. </p>

<p>Besides, you don’t know until AFTER you enroll what you will and will not get, and what the actual cost is. If you are counting on, say, a sports scholarship, the coach or his successor can pull the rug out anytime, or the student can just lose interest.</p>

<p>Financial Aid is not “free money”. Some of it is a public or private investment in the student, based on prior and continued performance. To me, that is EARNED money. Some of it is “assistance” for low and moderate income students, to create a better society through competition. Some of it is “work study” in which colleges get cheap help in exchange for a little break on the bill. The rest are “loans” which must be paid back; some right away, some after graduation.</p>

<p>Here are the big problems, as I see them from the viewpoint of a professional recruiter:</p>

<ol>
<li><p>Parents pay. If more students paid, and the parents walked them through the decision process and possible consequences, I think there would be fewer problems and more respect for money. I’ve found that people who’ve invested in themselves come out better for it. I’m cheap, and I let my kids know it: “Daddy does not pay for college, weddings, or bail bonds. You’re on your own, but I’ll show you how to do it.” So far, so good. Fingers crossed.</p></li>
<li><p>Only about 20% of those in college really have a clue and a path to what they want to do after college; they know more about what they DON’T want to do. So, they are ill-prepared to pay the money back.</p></li>
<li><p>Students choose “dream colleges” for the wrong reasons. The color scheme; the landscape; the football or basketball team on TV; they got a scholarship for being on the crew team; the parents get to brag. The best thing that happened to my son, who initially wanted to play soccer and major in engineering (perhaps in that order), is that, with my direction, he met not just with the soccer coach, but the chair of the Engineering department, to see if was reasonable to be top-notch in both, and still graduate in four years. The Chair looked at him and asked, “Do you want to be a Soccer Player or an Engineer?”. The end of the story (so far) is that he’s on track with his studies, playing intercollegiate club soccer, and getting involved in other activities.</p></li>
<li><p>For whatever reason, there are too many “undeclared” first- or second- year students. They are taking basic general ed courses at an expensive four-year school that a JC can do just as well and far cheaper. If that’s the situation, take general ed and do your major-shopping at a JC. Then declare at your favorite college. Your criteria will change by then, and you’ll be far less likely to be in a financial hole with no means to repay.</p></li>
</ol>

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<p>The process, terminology and marketing is not only confusing, it is misleading.</p>

<p>Many parents logically think that the Expected Family Contribution (EFC) is the amount they will be expected to contribute. WRONG. That figure should be called the Minimum Family Contribution (MFC), because in reality most families will be expected to pay much more than the EFC. Also, you have to look in the fine print to find the information that if you bring “outside” scholarships with you, those scholarships will probably REDUCE your financial aid.</p>

<p>Loans should not be called Financial Aid. That is one of the most cruelly misleading shocks. Actually, neither should Work Study. Talk about false advertising. The college materials make the prospect of receiving significant financial assistance sound so likely, so enticing.</p>

<p>Until one has gone through this process personally, the full import of these points is often not clear. This is why guidance counselors who haven’t been through this process with their own children sometimes don’t seem to understand the problems. Yes, the parents eventually figure it out, but often not until they have gone through an ugly shock treatment.</p>

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<p>I did not read the whole thread, so I am not sure this has been mentioned:</p>

<p>Besides FAFSA and CSS profile, some schools have additional FA application and procedures. These additional application requirements are easy to slip. Sometimes, parents and students have to go through several web links to see the requirement. Some require snail mail, some require online filing. Some require IDOC, some don’t. My kid almost missed one.</p>

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<p>coolweather - the antidote to that one is this:</p>

<p>READ EACH SCHOOL’S FINANCIAL AID WEBSITE. Carefully. Never assume that all schools’ procedures or deadlines are the same. Pay particular attention to anything labeled “financial aid application process” or “required forms” or “deadlines” or similar titles - click on those things, then read the content carefully.</p>

<p>I do agree that it can be easy to miss the supplemental forms. But the info is always there on the website. Some websites are definitely better than others, though.</p>

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<p>It is more than knowing how to add and subtract that makes the FA process so difficult. to me, what is especially difficult is determining what the meaning is of vague ambiguous words and phrases that appear on both the tax forms and on the FAFSA and Profile forms that can admit of many different meanings. For example, I had two different FAOs from different schools give different interpretations on what should go in the untaxed income box. Doing my taxes this year I had something like 4 choices for the education deduction, and I do not know for sure which to pick.</p>

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<p>what is idoc?</p>

<p>probably not
[State</a> of Illinois | Department of Corrections](<a href=“http://www.idoc.state.il.us/]State”>http://www.idoc.state.il.us/)</p>

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<p>It is a document distribution system. You send your tax info to them, and the schools can access it. It beats sending out documents directly to the schools.</p>

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<p>momcat - I have been very careful. And this the second kid applying to college, not the first one. But I still almost forget one school. 2 years ago, I found some schools point to the web site of the previous year with old information. Some low income kids and parents who are not familiar with colleges and the process probably will miss a lot. The college web sites have lot of information for parents and students to navigate but does not have a clear summary page for parents and students to take action. Students who want aid must have to dig hard. However the colleges could have done a better job. Not everyone is keen on paper work and accounting. That’s why a lot of people would rather spend couple hundred dollars for H&R Block to do income tax return instead of doing themselves, even when the tax case is very simple. Many parents pay college consultants to apply for FA and things are easy for them. But many poor parents cannot.</p>

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<p>Two years ago, when I filled CSS profile the first time I thought I could scan all the documents in PDF and upload to IDOC. I turned out I imagined too much. I thought I stand for internet. On the other hand, teachers, counselors, and students can upload recs, transcripts, multiple essays on the Common App, I wonder why we cannot upload documents electronically to IDOC. I think colleges can throw away IDOC and let Common App handle everything.</p>

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<p>ut said, re idoc –

</p>

<p>how do you send them? cool says 2 yrs ago it was snail mail in big paper pkgs. I assume that today you can scan and upload, right, like lotsa of official type does nowadaze?</p>

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<p>continuing on the thread theme,</p>

<p>Student family (innocently): </p>

<p>—How much does this college cost?</p>

<p>College, with or without a smile, and noir-like, in low tones, with a long overcoat under a hazy street lamp, or not – in higher nasal tones, in a tweed suit ala JF Buckley: </p>

<p>—How much ya got?</p>

<p>If this did not cost so much money, this might be a comedy. But , considering all that is at stake, …</p>

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<p>You wouldn’t think that scanning & sending your tax info via email is such a good idea if someone got hold of it. Email is NOT a secure method for sending personal information!!! FAO’s don’t even send social security numbers to each other via email; we use XX-last four digits or call each other.</p>

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<p>I gave a financial aid talk last night. Afterwards, a parent said, “Thank you for bursting my bubble.” I make sure that I explain how the process works, and I encourage families to be realistic … I stress making sure they have a school on their lists that is a for-sure financial safety. I guess some folks resent being given practical advice.</p>

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<p>kelsmom-- You are clearly quite ethical. I’ve always found this about your posts, at least. I think you are realistic and you want students to be realistic, as well as families, and you seem quite dedicated to the mission of getting people an education without burrying them underneath debt. You do what you can, and you occaisonally run across the family or student who will not take your wise counsel, and they end up “in trouble” financially. Let’s stipulate to this fact.</p>

<p>However, do you believe that most of the people doing what you are doing have this kind of mission? I don’t know. I think you are a rare example. Though, I’m willing to be proven wrong. I’d LOVE to believe that your approach was the norm.</p>

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<p>I give financial aid talks too, and I’ve only had an upset reaction once. I present the topic from a realistic but positive perspective: there are colleges out there for each family that will be a financial fit, but you have to understand the system to find the colleges that will work for you. I give lots of examples of colleges people may not know about to illustrate different “types” - relatively low cost, great merit aid, great need-based aid, etc. It’s probably easier to take this approach when you don’t represent a particular institution.</p>

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<p>I don’t present to many who would be frequenting CC, and the main focus of the groups to whom I present are public universities and non-selective private colleges. I am not generally speaking to people who can or will attend a meets-need college. The only Profile school on anyone’s radar is our state flagship, which requires it. So for me, the emphasis is on very basic financial aid. These folks are hoping to attend a state U that costs $20,000 or so a year. When I find out that the parents have one child and live paycheck to paycheck … yet earn $70,000 or so a year … I know that they won’t get what they are hoping to receive. I explain how to choose a safety, how to look for merit, and then encourage them to apply to that state U (in addition to the CC and commuter U) because it might work out. I just don’t want them to put all their eggs in one basket. Fortunately, I work for a school that can be quite affordable for many of these families, so I feel very comfortable with representing this school as I discuss available options.</p>

<p>I know that some of my coworkers are also committed to helping families understand how it all works & how to avoid the debt trap, because we talk about it. I don’t know about others in our field, but the professionals I meet at conferences seem to have the same goals regarding helping students find a school they can afford.</p>

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<p>How often , and what conditions, is Verification done? I saw somewhere a stat for a college’s verfication rate (it was actually 60 pct). is this reported somewhere in a standardized form for each college? Is it random, or for certain apps and/or conditions, does it occur almost forsure?</p>

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<p>Verification varies (!). All schools are required to verify at least 30%. The Dept of Ed selects students randomly. Some schools will verify all the FAFSA’s selected (we do); other schools will just stick with the 30%. Some schools will select some themselves to verify. They may choose to do it randomly or to select using a set of criteria they develop. </p>

<p>And yes, certain mistakes might lead to selection for verification (such as taxes that are very high compared to the income). This is an assumption, though, as the DoE does not comment on this sort of thing.</p>

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<p>kelsmom - How important to correct FAFSA and CSS profile after income tax return is filed when there are some significant mistakes that are unfavorable to students (for example putting estimated income higher than actual income)?. Do the colleges correct them or students and parents have to make the correction and send to colleges?</p>