<p>In preliminary estimate we have received following offer (figures rounded)</p>
<p>Parents’ contribution: $5000 - $6000
Student contribution from summer earnings and student job and student loan $5000
Student asset: 0</p>
<p>Yale scholarship $35000 - 36000 </p>
<p>When I spoke to financial aid office, they mentioned that scholarship is a grant. But one of my colleagues whose kid attends Princeton insists that except Princeton other school (Yale and Harvard) may give loans as part of scholarship grant. </p>
<p>I am not only confused but also concerned. If Yale scholarships include $5000-10,000 in loan, we might have to think. Could anyone elaborate on this issue that Yale or Harvard or any need blind school offer loan as part of scholarship? </p>
<p>In order to compare aid, our kid is continuing as an applicant to other colleges. </p>
<p>I have seen claim by Princeton that all aid offered is grants and no loan. Is my fear justified about loan? Or is it out of place?</p>
<p>Math-- I suggested yesterday that you take your concerns to the Financial Aid office at Yale and you insisted that you already had.</p>
<p>Here's a prime example..... get it in writing from Yale that it's a grant and not a loan and then you can sleep at night. Get a lot of anecdotal information off an anonymous internet board from people who claim to know what happened to their nephew.... and you could be in trouble. Call the financial aid office; they'll tell you the real truth. We all try to be helpful but one of us could mislead you unintentionally and you'll have no recourse.</p>
<p>Math,
It sounds like there is a loan: $5000 from summer job/loan. So if your kid made 3000 at a summer job, then he/she might need a $2000 loan. In addition, it sounds like the family contribution is $5-6000. Therefore, the total that you and your kid have to come up with is about $10000. Yale is giving you $35000 which does not have to payed back. If you and your kid cannot come up with the $10000, then I guess you would have to consider borrowing it. But, like Blossom says, only Yale knows for sure</p>
<p>I suggest emailing your question to them, and ask about how the package will change over the four years, including what the loan limits will be. Then print off the answer and SAVE it. It is evidence - much better than calling, because it's easy to forget exactly what was said, and you have no proof if somehow things don't work out as you were told.</p>
<p>The part labeled "scholarship" is a grant. They would not refer to something that includes a loan as a "scholarship". There is a student loan, but apparently it is subsumed within the "student contribution" of $5000 -- your son will probably be offered a first-year Stafford loan of $3500 and expected to come up with the other $1500 on his own. </p>
<p>Your friend is confused - or perhaps you misunderstood him. Most probably the confusion is over the word "award" (not "scholarship"). Princeton has a "no loan" policy for first year students , so its overall their financial aid awards will not require the students to take out loans. So if Princeton & Yale had identical assessments of need and cost of attendance, and both determined that the family needed $30,000 in financial aid, then the Princeton "award" might be for a full $30,000 grant, whereas Yale would offer $27,000 in grant money and $3000 in loans. </p>
<p>But the word "grant" or "scholarship" always means money that is paid directly on behalf of the student.</p>
<p>Looking at the numbers- $5000-6 from parents + $5000 from student self-help + $35-36K in scholarship from Yale = tuition, room, board, books, travel and expenses COA</p>
<p>The $5000 from the student is student's expected summer earnings + work study + loan. There is a small loan component, depending on the student's specific needs.</p>
<p>The parent's contribution can be met with a loan if they "want" one.</p>
<p>As far as P'ton, the loan component that is present in Yale's package (student component) is replaced with a grant, so that is where the "no loan" policy is applied.</p>
<p>ps
Also if any outside scholarships are won at P'ton (and I think Yale) they are applied first to the student's self-help portion of the award. So the student summer earnings shrink and work study, and I would think at Yale the loan would be the first to disappear.</p>
<p>Also agree with other posters to specfically speak with your financial aid counselor at Yale and then have them follow it up in writing exactly what is loan and what is not.</p>
<p>I am sure they will be more than willing to help.</p>