<p>For a school that requires FAFSA and PROFILE the first year, and only FAFSA thereafter, is it possible that a student's package would change dramatically (in either direction) the 2nd year? The IM calculators I've found online and in Chany's book compute a lower family contribution for us than our FAFSA EFC (mainly because our house is worth a lot less than when we bought it, so we're almost upside-down on it, so we have any extra contribution based on our house value, and the IM calculator seems to allow a little more income and asset protection otherwise). But I know that every college has their own formula. </p>
<p>Would it be the case that the school uses only federal methodology for subsequent years, or that they use their own formula still and just assume that things like your house value haven't changed much? Anyone know?</p>
<p>Your house is not a factor on the FAFSA at all, upside-down, rightside-up… it doesn’t matter. So that piece would not change from year-to-year as far as the FAFSA is concerned. In fact it isn’t even a “piece” at all.</p>
<p>My son’s school requires the FAFSA and the Profile and a couple of their own FA forms every year. (It would be nice if it was only the FAFSA after year one!)</p>
<p>My guess is the school you’re talking about wants the FAFSA each year to verify eligibility for federal aid only (which they would HAVE to verify each year), including an unsub Stafford loan if that is offered in the aid award each year. The school would have no choice but to require the FAFSA.</p>
<p>For the Profile info, they may be willing to just assume the basic financial facts of your family will remain fairly consistent over the the four years. I can imagine, after enough years of experience with its student body, a college could feel that the cost-benefit ratio of re-processing all that Profile information every year doesn’t generate enough change in expected contribution to make it worth the labor hours to do it over and over for every student.</p>
<p>The house is a factor for PROFILE, the fact that we have virtually no equity in our house was offered as a partial explanation for why our PROFILE contribution is not HIGHER than our FAFSA EFC, as it normally tends to be for most families. </p>
<p>That makes sense about them needing to reconfirm eligibility for any federal awards, and otherwise assuming that items on the PROFILE that are not on the FAFSA have remained fairly stable.</p>
<p>I’m just saying the issue with the house isn’t the thing that’s creating the difference between the FAFSA and the Profile. Profile schools will use home equity information in different ways, but just generically speaking, yes, it’s possible that your low equity situation is not adding to your Profile contribution figure as it might if you had more equity. </p>
<p>In a sense you could say the lack of home equity is not bumping your Profile contribution figure up, but why it is lower than the FAFSA EFC must be due to other things – family size, private school fees, a different protection allowance (as you mentioned), medical costs… or any number of other things asked on Profile.</p>
<p>Our son’s school required the FAFSA and Profile for ALL financial aid for incoming freshmen (including ALL merit aid). After that, the FAFSA was all that was needed UNLESS you felt your family finances had dramatically changed…at which point you could submit a Profile again. </p>
<p>Someone will have to verify this but I believe that the schools that meet FULL NEED require the Profile (or a school form) in addition to the FAFSA…EVERY year. </p>
<p>Schools that don’t meet full need can “adjust” your need based aid from year to year as they are not making a guarantee to meet your full need anyway. They can also alter the balance of your package (more loans/less grants).</p>
<p>And agreed with Rent…your house equity isn’t counted AT ALL on the FAFSA.</p>
<p>For schools that don’t guarantee to meet all demonstrated need… do they give any kind of assurance that the package offered freshman year will be typical for all 4 years (if there are no major changes in the family’s financial situation) or could they try to bait and switch you by offering a great package freshman year, and then a lot less in subsequent years?</p>
<p>That makes sense, Thumper. My son’s school meets full need, largely using its own institutional funds, so it makes sense they’d want to verify family financial information every year and not assume anything.</p>
<p>They ask for a lot: The FAFSA, the Profile, supplemental questions to the Profile, two of their own financial aid forms (each one a couple pages long), dependency verification, sibling enrollment verification from the sib’s college, all parent and student tax forms, schedules, W-2s, 1099s, itemized medical expenses, etc.</p>
<p>Not that I’m complaining. They are very generous and I’m thankful for it everyday. If they wanted my grocery and gas receipts, I’d send them!</p>
<p>Mathmomvt, I think you can just ask them that. I believe most schools are pretty upright in the way they deal with this, but it is wise to just get some confirmation.</p>
<p>But remember too…most schools will tell you that need based aid awards are determined based on ANNUAL filings of the financial aid applications. They will not guarantee your need based award for subsequent years because those awards will be based on the info you send in for financial aid consideration for those years…not based on what you have submitted this year.</p>
<p>Of course need-based aid would change if one’s need changes, but I’m just wondering if there are schools that do “preferential packaging” for freshmen, and then give them a much worse package the next year, even with similar financial need.</p>
<p>You need to ask the schools…but “much worse” is a relative term. Can the school CHANGE your need based aid from year to year…YES. Can they reduce grants and increase loans…YES. Do some schools expect a larger student contribution in subsequent years…YES.</p>
<p>I understand that the aid package offered each year will depend upon the actual income/asset/family size, etc. info reported on the financial aid forms that year and will vary accordingly. What would be really nice to know ahead of time is how much the gift aid/ loan ratio will change from year to year at a particular school. I know the Stafford loan limits rise as students progress through school, but are there schools that have a reputation for gapping or adding loans to the mix beyond that?</p>
<p>Wow, Never heard of that one. They give FA as merit within need the first year and then changed only in terms of Federal requirements thereafter.</p>
<p>I’ve heard of some colleges having rather strict requirements to keep merit aid. Read the fine print.</p>
<p>Also, I’ve heard of colleges requiring larger amounts of work study after the freshman year in order to meet “100% of need.” It is understandable that they try to keep work study hours low in freshman year while the student is becoming adjusted to college, but then expect more hours in later years.</p>
<p>For MERIT aid…there is usually a minimum GPA requirement for maintaining merit aid. Recipients of merit aid need to look at the provisions for their continued award.</p>
<p>And yes…most schools would like to see more student self help as the years go on. This can be in the form of more work-study hours or an addional expected student contribution.</p>