Students & Families Getting Screwed Because Schools Won’t Use Standard Finaid Letter

Parent Cafe
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<p>"In 2011, the Dept. of Education announced a standard financial aid letter that breaks out all forms of aid. The cost of attending is at the top, followed by grants, scholarships and any other aid that is not to be repaid. This is subtracted from the cost in the line that reads “What You Will Pay For College.” Only then does the form mention the loans, which are broken out into loans the student would be responsible for repaying and family contributions like PLUS Loans.</p>

<p>Unfortunately, after a year in existence, only 312 institutions had adopted the form. That only accounts for about 10% of all undergraduate students." ...</p>

<p>Students</a> & Families Getting Screwed Because Schools Won’t Adopt Standard Financial Aid Letter ? The Consumerist</p>

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<p>Yup, that Pace letter is SO hard to understand?? Not unless you read at below 5th grade level. Spoon-feeding people who think they belong in college is getting out of hand.</p>

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<p>Personally, I like the format of the shopping sheet. I don’t like the final piece, though, that includes the EFC and loan information. EFC should not be used in the award letter. The bottom line is, whatever costs are not paid by grants & scholarships must be paid somehow. THAT is the TRUE “EFC.” I would suggest reworking it to make it clear that the remaining costs need to be paid, and indicate that this can be paid by the family and/or borrowed through loans. The PLUS loan and private loan information should indicate that these are based on creditworthiness.</p>