Should merit award impact "need based" aid?

<p>My DD had a merit scholarship, plus need-based financial aid, at a school that meets 100% of institutionally-determined need. Her merit scholarship required a very reasonable 2.8 g.p.a. to renew it (and we knew that need-based aid would take up the slack if she had lost it due to a g.p.a. lower than that). The BENEFIT to her merit scholarship was that it replaced the student loan and work-study component of her FA package. DS did not get a merit scholarship from the school, and his F.A. package at this school included a small amount of student loan, and $1800 of work/study per year. The school did allow his outside merit scholarships to reduce his already small amount of loans, though - and if he had had more outside scholarships, they would have also replaced his workstudy. He will likely graduate with a total of $7500 in student loans. There is not a large difference between the merit/need and needbased only FA for my kids.
On another note; some scholarships require you to be in a specific major as well as keep a certain GPA. DS was offered a fullride at a large state public school, but the largest part of the scholarship was departmental; it requred him to be a major in that area. Luckily, he did not decide to attend that university. Although he started out in that major at his current school, he decided that he preferred a different engineering area and switched this year. If he had done that at the fullride school, he would have lost his departmental scholarship. And since 2/3rds of students change majors, it might be something to discuss before accepting a specific major linked scholarship over needbased aid!!!</p>

<p>cluelessdad - As I described previously, based on both anecdotal (curmudgeon) and verbal (FA officer at official presentation) information, Scripps DOES combine merit and need–by replacing all loans and work with grant. This serves the purpose of poaching top applicants, and is more generous than many other schools (Oberlin, when questioned verbally, just said that the package “would be different”).</p>

<p>OK, now my screenname really applies – and curiosity is killing me!</p>

<p>So merit aid at some colleges only really fully applies for rich families? And this only comes out in the wash when its too late for an applicant to fully explore other college options? If the point is confusing on a site as tuned in as CC, it is definitely misleading as a recruitment device.</p>

<p>It really does amount to false advertising in my mind. Just wrong and unethical for a college to bait and switch this way.</p>

<p>I refuse to believe this until there is a direct FinAid confirmation (no offense to anyone who has already obtained own information on this, just a serious case of denial here).</p>

<p>If a rich family’s EFC is $50k, and they get a $15K EFC reduction, a MERIT award should also reduce the EFC of any MERIT deserving student, particularly from any college that guarantees full need.</p>

<p>.</p>

<p>I can tell you that it is possible to cover all of your costs with merit & need based aid … but it’s not typical & it’s not in the sense most here hope it will be. I work at a state U. If a student gets a Presidential scholarship for $8000 it will not be reduced by anything. So the student can theoretically get that, plus full Pell = $5350, plus some community scholarships totaling let’s say $3000. Altogether, that $16350 would cover tuition, fees, and room/board in the dorm. If the student lives at home with mom & dad (we are largely a commuter school), she will receive a huge refund each semester. All of that money is hers to keep. In this particular scenario, sometimes students get so much merit that they exceed COA. The Presidential is not reduced, Pell is not reduced … COA can be exceeded. </p>

<p>This is not something you are likely to see at a $50k private, but it CAN happen at a reasonably priced public. </p>

<p>And of course, if the student’s initial package had included SEOG & institutional aid, those would be removed … but the student hardly is hurt by it.</p>

<p>^Oh right, federal aid is unaffected. The generality of this thread applies, though. Life’s not fair.</p>

<p>I’m ok with capping at COA (however defined), but the lure of merit awards is to reduce out of pocket. </p>

<p>I really key on how perverse it would be for a rich family to benefit while a family in tougher financial circumstances gets the shaft. Colleges really do have an ethical (if not legal) obligation to be upfront about what advertised merit programs really do or do not award.</p>

<p>I should add I have no dog in this fight, just amazed by the inequity if it is true.</p>

<p>“Rocket, I’m confident you will find that merit awards are in addition to need-based aid rather than replacement and can chunk away at EFC.”</p>

<p>I checked today at my D’s school and merit does reduce your financial need. Merit is not given in addition to FA. A 12K merit scholarship at D’s school means 12K WILL BE deducted from her total financial need. I think that is the case at most tier two schools and below. I can’t speak to the Ivies. I did not know this because our EFC was too high for need based aid previously. Blossom is correct. It is really a matter of semantics. I think some people (myself included) had viewed merit (earned based on academic prowess) as a stand alone supplement to need. It was not my expectation that a merit scholarship would fill a portion of our need based component. Unfortunately, at least at many schools, it does. I now view merit as nothing more than a tuition discount or grant with a minimum GPA attached.</p>

<p>Alas! I realized that the merit in addition to need might be a bit specific for me. With my dad being sick and losing his income, my mother called both finaid offices to talk about our options. Both said that in this case, they would add merit to need(that way I wouldn’t have to appeal aid)</p>

<p>But, they did say in would be in addition to…</p>

<p>sorry for any and all confustion</p>

<p>Clueless it really bothers me how some people assume families who do not qualify for financial aid are rich like the money just dropped in their lap. The majority of families who are paying full price have 2 parents working extremely hard. I don’t think it is at all perverse for them to benefit from merit aid. If it wasn’t for their many years of hard work (and savings) colleges would not be in a position to offer so much financial aid.</p>

<p>Rocket, I believe in your case you are referring to Smith and Scripps. Is it your sense that the IN ADDITION was because of your specific circumstances or the general policy of these colleges? I’m curious if reducing need is a universal practice (as there are direct reports of it as at least some colleges’ practice) or varies by college.</p>

<p>Tennis, you can count our family in the same category. Two in college in the fall, no need submitting FAFSA cause its gonna came back zip need. Yet it ain’t easy for us to make it work.</p>

<p>I don’t begrudge merit aid to anyone, and haven’t said rich families should not qualify for merit. In fact, all I want is for merit aid to ease the burden for the family of any student that gets it.</p>

<p>They both made it sound like it was a general policy…but I really don’t know. All I know is my mom was assured that any merit money I would get would go towards my loans, work, then EFC</p>

<p>I’m curious, also, cluelessdad, my gut says “most” colleges and universities would use outside scholarships to reduce need not as an addition to need.</p>

<p>^ The “rich” family wouldn’t get a $15k EFC reduction for merit aid in your example (and please keep in mind that an awful lot of “merit” scholarships require demonstrated financial need, shutting out the “rich” family from consideration). Their EFC would still be $50k. The difference is only that the money’s already coming out of their pockets, so there’s no need-based aid component to reduce.</p>

<p>I think what’s at issue here is not the idea that smart students “deserve” merit aid, but the idea that needy students “deserve” need-based aid. In the case of a merit scholarship, somebody else (whether a charitable alum, a scholarship-granting corporation, or the college itself) commits to pick up part of your tab. Hence, your *“need”<a href=“i.e.,%20the%20difference%20between%20the%20full%20price%20and%20the%20price%20that%20the%20college%20decides%20you%20can%20afford”>/I</a> is reduced. It’s weird, but it’s not really that complicated. You’re still using other people’s money to pay the difference; it’s just from a (potentially) different source of other people’s money.</p>

<p>It’s like this: If your neighbor fell on hard times and you offered to pay his rent, but then somebody else came in and paid it for him because they think he’s a swell guy, would you still write him a check for the amount of his rent?</p>

<p>Thanks for the clarification cluelessdad. My point is the people paying 50K are the ones that need their burden eased the most.</p>

<p>Rocket - It sounds like merit on top of need is an exception to the rule for your special circumstances. If you appealed to Scripps, my guess is that your EFC would go down close to zero after professional adjustment, so the end result to the college is the same.</p>

<p>Keil-I’m beginning to agree with you. Our current EFC is like 9k…but I just ran our numbers minus dad’s income and adding his medical bills and it goes down to like 3k(using IM not FM)…so the school would have us paying essentially the same if they let me use the merit or if I appealed for aid…</p>

<p>Wow! This thread must have hit a nerve. 77 posts (and counting) in less than a day.</p>

<p>This is how Lafayette handles merit plus FA:
“Marquis Scholars receive an annual minimum award of $20,000 ($80,000 over four years). Financial aid applicants who are designated as Marquis Scholars, and whose financial need exceeds $20,000 will receive a scholarship up to demonstrated need minus a campus job of $2,000 and a loan depending on family income (no loan for incomes under $50,000; a $3,500 loan per year for incomes above $50,000).”</p>

<p>See this link for more info: [Lafayette</a> Academic Scholarships](<a href=“http://www.lafayette.edu/admissions/marquis/index.html]Lafayette”>http://www.lafayette.edu/admissions/marquis/index.html)</p>

<p>I’m actually surprised that schools erase work-study first, and then loans. If I were a student, I’d rather have the work-study job and no loan. Often, the work-study jobs are the best jobs available on campus for under-classmen, and they often can provide great resume-building experience. If you are not eligible for work-study, many of these jobs are not available to you.</p>

<p>My daughter’s school reduces loans first. Then WS. At least they did when she got a higher merit scholarship her freshman year.</p>