Should I do ED if I need financial aid?

Paying for College
1

<p>I'm considering applying ED to Harvey Mudd since it is definitely my first choice. The problem is that I've heard that ED is a bad idea when you need financial aid, since you can't compare aid offers. </p>

<p>However, there are some things that I think mitigate that problem. My parents said that they can afford $30k/year, and when they did the FAFSA forecaster, my estimated EFC was $30k-$40k. Harvey Mudd promises to meet demonstrated need, so I shouldn't have to pay more than $40k there. My parents can afford $30k and I might be able to make up the rest with scholarships, by working, or with loans. Since Harvey Mudd has the highest average salaries after graduation, I should be able to pay off loans fairly quickly.</p>

<p>Also, I'm not sure how easy this is to do, but it's possible to back out of ED if the financial aid offer isn't sufficient.</p>

<p>Considering those factors, do you think I should apply ED?</p>

2

<p>

Your salary after graduation isn’t necessarily contingent upon that. The reason for Harvey Mudd’s high salary rate is its concentration on engineers–a profession that, on average, makes a lot of money. You might do similarly well by studying at any other top engineering program whether it be independent (like Cooper Union) or part of a larger university (like Princeton or Berkley).</p>

<p>

I’ve heard of people doing this but I don’t know if it applies to an institution which claims to meet all “need” and I know it’s not looked too well upon unless there are extenuating circumstances.</p>

3

<p>No, you should not apply ED.</p>

<p>FAFSA forecaster is not going to estimate what HMU is going to expect your parents to pay.</p>

<p>HMU uses CSS PROFILE to determine what your family should pay…not FAFSA. They only use FAFSA to see if you qualify for federal grants and such. And, your EFC is too high for federal grants.</p>

<p>You can’t use FAFSA forecaster to determine what HMU will expect your parents to pay. </p>

<p>And…HMU determines what your need is, and if they say that you have very little need, then that’s all they have to meet. </p>

<p>CSS Profile considers other sources of money…such as home equity, car values, and other things. And, if either of your parents is self-employed, then that could also hurt your chances for aid.</p>

<p>You won’t be able to take out a loan to cover a gap in your “family contribution” because there will already be a loan for you to meet need. You would need your parents to co-sign any extra loans.</p>

<p>Since ED decisions are in the Dec/Jan timeframe, it’s highly unlikely that you would know at that time if you had private scholarships to help you cover costs for 4 years. Besides, private scholarships are often only for freshman year only. You might be able to earn some of the money, but you will also need some money for “pocket money” and daily expenses during the school year.</p>

<p>Since you already know that your parents’ budget is $30k per year, you need to apply RD and EA to various schools so that you can compare FA packages. AND…be sure to apply to financial safeties, because CSS Profile schools may determine that your parents should pay full freight…or near full freight.</p>

<p>Your salary with a HMU degree in engineering will not be higher. Engineers from all schools start at a higher salary than other college grads. You will not get a bonus in pay because you graduated from HMU. An engineering grad from UCLA or Berkeley or many, many other good schools will net the same salary.</p>

4

<p>If HM is your definite first choice, and if you don’t care about comparing offers, and if you just want to know if you can afford it, applying ED is fine, and possibly confers a slight admissions advantage. If the offer is insufficient (and you don’t have to decide until you receive it), backing out is easy; here’s the Common Application rule:

You say thanks but no thanks, and apply elsewhere RD, but have those apps ready to go by the time (or before if necessary) HM sends their decision. You would withdraw the other apps when you accept HM’s offer.</p>

5

<p>^^^^</p>

<p>The problem with that scenario is that she might get HMU’s FA package, think it’s not great, and then decline HMU, apply elsewhere, and then find out that HMU’s offer is similar to the others or even BETTER than the others…but then it’s too late to go to HMU. :(</p>

<p>aops…no matter what you decide…make sure that you have your financial safety schools in place…schools that you like. :)</p>

6

<p>Yup, that’s a risk. The other risk is being admitted ED but not RD if ED confers an advantage, and there’s no way to know for sure. She has to decide if the offer is affordable. HM says “Ninety-nine percent of the time, this aid offer is generous enough for you to commit to HMC.”</p>

<p>[Why</a> Consider Early Admission](<a href=“http://www.hmc.edu/admission1/applyingforadmission1/earlyadmission/whyconsiderearlyadmission.html]Why”>http://www.hmc.edu/admission1/applyingforadmission1/earlyadmission/whyconsiderearlyadmission.html)</p>

7

<p>HM says “Ninety-nine percent of the time, this aid offer is generous enough for you to commit to HMC.”</p>

<p>That sounds odd since many families have little idea of what their “family contribution” will be …and are often shocked. But, I guess it could be true if many of the ED applicants can pay full freight, pay whatever is asked, are confident what their IM EFC will be, or have low incomes and know they’ll get a free ride. </p>

<p>However, the OP has said that she used a FAFSA calculator. That can be much different from a IM calculator. </p>

<p>starting salaries anywhere from $45,000-$75,000</p>

<p>This is interesting…the OP thinks she’ll get paid more at HMU so paying debt will be easier…well, that range is rather typical of engineering types from all good schools. so, no money benefit at all from HMU.</p>

8

<p>“However, the OP has said that she used a FAFSA calculator. That can be much different from a IM calculator.”</p>

<p>This can affect what the family thinks HM might offer, but what counts is the actual offer.</p>

9

<p>Right…but the family should use a good IM FA calculator…and expect some range within that.</p>

<p>It seems to me that the higher up a person’s FAFSA EFC is, the even higher the IM EFC can be (if not HYPS) because higher income people often have equity and other things that can FAFSA doesn’t include.</p>

<p>Not always…but definitely a possibility.</p>

10

<p>Thanks for all the replies! What’s an IM FA calculator? </p>

<p>That’s a good point about engineering being the reason for the high average salary, I hadn’t thought of that.</p>

11

<p>See “Institutional Methodology” at [How</a> HMC Determines Financial Need](<a href=“http://www.hmc.edu/admission1/costsandaid1/aboutfinancialaid1/howHMCdeterminesfinancialneed.html]How”>http://www.hmc.edu/admission1/costsandaid1/aboutfinancialaid1/howHMCdeterminesfinancialneed.html)</p>

<p>I think m2ck knows more about the actual calculators.</p>

12

<p>m2ck, can you please point me to a good calculator?</p>

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<p>the college board has a generic EFC calculator based on institutional methodology:
[EFC</a> Calculator: How Much Money for College Will You Be Expected to Contribute?](<a href=“College Board - SAT, AP, College Search and Admission Tools”>Expected Family Contribution (EFC) – BigFuture)</p>

<p>and for some schools, a customized “net price” calculator:
[College</a> Board’s Net Price Calculator - Calculate the Cost to attend a University or College](<a href=“Net Price Calculator (NPC) - Education Professionals”>http://netpricecalculator.collegeboard.org/)</p>

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<p>Thanks dukedad!</p>

15

<p>My personal opinion is that you should not apply ED unless you are willing and able to pay any amount over what you are think you going to have to pay. ED can be a pain in the neck if you get an offer that is not affordable when you finally give the colleges you full year actual financial data. It’s all estimates, remember, when you are getting your ED acceptance. Something funky happens, or you were not careful with the info and you can be way off and you are stuck. Also when you get that estimate, you have no idea whether the amount of aid you are being offered is generous, about what you would be getting at like schools or a low ball. YOu have to make your decision in that vacuum </p>

<p>So no, I don’t think you should apply ED.</p>

16

<p>“unless you are willing and able to pay any amount over what you are think you going to have to pay”</p>

<p>Any amount? No one needing substantial FA could ever apply ED if that were the case, yet the system seems to work well. If the family’s final numbers are higher or lower than the estimates, the award can indeed be adjusted down or up, respectively, by an appropriate amount (I have heard 40 cents on the dollar). Mistakes are possible, but being based on tax returns reduces the likelihood of a devastating mistake. If a family’s income is subject to wide yearly swings, ED may be less appropriate, but that problem affects RD students as well over the four years.</p>

<p>When a school accepts an ED applicant needing FA, the school really, really wants the student to attend, and is willing to take a financial “loss” to make it happen. As just one example, in the memory of the staff of our D1’s LAC’s FA office, no student has ever been unable to attend solely because of a change from the estimated to final numbers.</p>