The concept of “value” in terms of selecting a college or university can generally be swayed as anyone elects to do so while justifying their own financial decision. In reality, it is more often a matter of balancing wants and desires versus affordability for the family involved in that decision making process. And many families are ultimately shocked by how colleges and universities evaluate their family’s ability to contribute toward the total cost to attend for their aspiring college freshman-to-be. Those eventual FA decisions (and regardless of the college making them) can be astonishing to many families.
And USC will be no exception for those admitted… as many will be dismayed by the eventual FA offering. It accounts in large measure for the yield rate at USC only being circa 40% in recent years. 4900 or so of the eventual 7900 admitted to USC this cycle by circa March 24th will end up enrolling elsewhere. And financial considerations will be the primary factor for many of those eventual decisions to pass on USC.
When it comes to financial aid offerings, most colleges and universities operate with the same guiding principal that they will lower any grant money being offered as an offset to account for any new scholarship money that they are aware of. Basically, once they know of new scholarship money available to a new or returning student, they readjust the perceived need for money given their calculations of a family’s ability to pay. And that calculation is what can vary widely by school.
Most schools will expect families to convert assets or equity into available cash for college expenses. They evaluate both parents, whether still married or not, in terms of all known or disclosed personal and business assets versus all known or disclosed personal and business liabilities. If there is perceived net worth there… whether liquid or not… and whether individually owned (in terms of divorced parents) or jointly owned by a married couple, they do expect you to pay utilizing some if not all of it, even if you have to borrow against non-liquid assets. And many families are simply unwilling to do so. Could many of those families afford to do so? well, sure. But many will likely equate that the value is simply not there to justify doing so. And that is clearly their choice. Other families will gladly elect to do so. Either choice is ultimately valid. No one should judge that decision from afar.
From USC’s perspective, it simply comes down to what they know about your family situation in total and how they then calculate your “ability to pay”. And that of course often does not correlate well with the family’s perception of their own ability to pay. And this calculus can vary widely given the parameters being used. For example, some schools do not think that a student should have to go in debt with loans, some say that a family should not have to pay tuition for their student if the combined income is below a certain threshold, etc. But even such declarations are not iron clad if schools are also evaluating perceived net worth and available assets that could be used in some manner… whether liquidated for cash or borrowed against.
And even if a family’s ability to pay is calculated to be very low, schools like USC will expect the student at least to have a work study job and utilize student loans to contribute toward the cost of attending. So, in the end, scholarship money and grants will not stack as most families would hope. The only real prospect for a more favorable FA offering will come from that “ability to pay” calculation.
Before an admitted applicant panics after receiving an unexpected FA offering, maybe ask yourself as a family some key questions… Does the college or university truly understand your financial situation fully? Have you actually listed every known or projected liability? Have you made them aware of every recurring monthly or yearly expense? Is there a medical condition that they need to be made aware of… or an obstacle with your family business, if applicable, etc? Is your income situation somehow untenable moving forward, possibly reducing your projected income?
Any extra potential relief from the cost of attending for a family will come via an analysis of income, assets, liabilities and the like. So, just make sure that they fully understand your family’s financial condition now and projected moving forward before you abandon all hope.
Those families that do opt to make the finances work might just have a stronger affinity toward what the University of Southern California could mean for their child’s future. Maybe they have evaluated rankings like the ones generated by Niche and determined that USC being ranked #1 out of 1,521 in terms of colleges with the Best Student Life in America is an important enough factor. Or, if accepted for SCA, USC being #1 out of 280 colleges for Film in America is the determining element that signals sufficient value. Any of these rankings might be justification enough for some families: Best Colleges for Business in America #2 of 1,243, Best Colleges for Performing Arts in America #2 of 554, Best Colleges for Design in America #2 of 427, Best Colleges for Student Athletes in America #4 of 1,336, etc., etc. There are scores of rankings that could be used for justification… either pro or con.
For others, the simple calculus that we just cannot afford the total expense is all the reasoning needed to pass on USC. Thankfully, each admitted student’s family can decide for themselves. And ultimately, USC is only one of scores of elite colleges and universities that can serve as a great pathway for their child’s further education. I personally recommend choosing wisely and to not put an undue or excessive financial burden on the family. It is hard to justify doing so for any undergraduate education. The college years should be magical and a great experience for the child attending and not serve as an unwelcome catalyst for resentment or financial hardship for any family. If that is even at all possible, select a college destination easier to manage. It is far better to position that final enrollment decision within the proper family framework versus bringing forth unwarranted turmoil just to appease some dream school wish fulfillment. At least that’s my take on it.
Good luck on that front to all of those admitted EA or later this month to USC who are still trying to work out the numbers via merit (hopefully) and FA…
