<p>Hi all :)
I know there is a difference between merit- and need-based scholarships; need-based is based on financial need while merit depends on grades, ECs, etc.
My question is, what do many colleges consider when looking at giving need-based scholarships? What makes a person receive the scholarhip--income, debts, credit history? I have no clue, really.
My parents have all debts paid, but we don't have a high income, maybe around 35k a year. Alas, due to our lack of debt, we have previously been prevented from getting need-based aid (I pay tuition at my HS), though our income isn't hefty.
Thanks!</p>
<p>You can find a FAFSA calculator on about any college website or google it. Put in the information and you’ll have a good idea if you will qualify for “need”. As I understand it - the maximum Pell Grant is $5500 per student per year. You can also get Stafford loans. Might qualify for work study. Some states also have additional grants - but often it is first come, first served. So you have to submit your FAFSA early. Some private schools will meet more need or full need - you would have to research those schools.</p>
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<p>I think there’s a little bit confusion in terms going on here. I would differentiate between 4 categories:</p>
<ol>
<li><p>Merit scholarships not based on need: these are the ones that you cited as being based on grades, ECs, etc.</p></li>
<li><p>Merit scholarships that are partially based on need: Like 1, but where along with grades, ECs, etc., need is also a factor.</p></li>
<li><p>Merit scholarships that require a level of need: Like 1, but you only qualify to apply for the scholarship if your need is at a certain level (eg. family income under 50k); then it is based on grades, ECs, etc.</p></li>
<li><p>Need based FA: This is where FAFSA and Profile are used to determine need. Need is based mainly on income, but also assets and other factors such as the number of people attending college, home equity (Profile), etc.; debt is NOT factored into these calculations. Once need is established, a college may fill all or part of this need with some combination of Federal and/or Institutional: grants (unfortunately sometimes referred to as scholarships), loans and WS.</p></li>
</ol>
<p>To the OP, the amount of debt is not a consideration for need based awards except in the situation where there is a lien on an asset such as property or a home which afffects its market value which is net of such a lien. A family owing money up the whazzoo on credit card bills and even student loans do not get a quareter for such debt. Even medical debt is considered on a very limited basis and generally is not–it’s what you have PAID that may be taken into some consideration. </p>
<p>Your family income of $35K will figure heavily in terms of need based aid, and unless your family has a lot of assets, those schools that guarantee to meet need or tend to meet a large portion of it for its accepted students will likely have a good financial aid package for you. But most schools do NOT meet need. They simply gap. Also need is not considered in those scholarships that are purely merit based. </p>
<p>To what schools are you applying?</p>
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<p>Not sure quite yet. Not Ivies or MIT level, I don’t think.
Also, now I know that our income is actually ~50k, depending on the year in sales for one of my parents, and we have about a quarter of a million in assets. That sounds like a ton! What do you think my chances are for need-based in general now? :eek:</p>
<p>Is your parent self employed? That really throws a twist into how much FA is offered.</p>
<p>Not self-employed, but neither went to college.</p>
<p>Alas, due to our lack of debt, we have previously been prevented from getting need-based aid (I pay tuition at my HS), though our income isn’t hefty.
Thanks!</p>
<p>You can’t compare “need-based aid” at a high school to the FA process for college. </p>
<p>Edit…</p>
<p>So, now your income is $50k and your parents have a good amount of assets. Are the assets in protected retirement accts?</p>
<p>When you are looking for need based awards, be aware that they too can have different requirements. The majority of need based grants are given by the colleges themselves, and they define the need. The way it works at a lot of schools is that a student has to have need as defined by the college (usually the calculation is done by FAFSA or PROFILE) in order to be in running for the awards. Some of the awards have other criteriia as well. Those schools that went to need based aid only, turned alot of their endowed scholarships into the financial aid pool with only those student with need eligible for those awards. So, yes, a student with financial need can get a merit award from financial aid that is a merit within need award. Some schools may even give more aid than defined by need. It all depends upon the school. Many schools give the best of the students who have need, the best of the awards, which are the grants that are pure money, over self help. </p>
<p>For those schools that are the most pricey, you will likely qualify for need based aid. About 5.6% of parental assets are usually put towards EFC,and then your have the portion of income that goes towards EFC.</p>
<p>The best way to see what the pure aid calculation is calculated is to pick a school that gives zero merit awards and guarantees to meet 100% of need, and run your numbers through that school’s NPC. That is a best case scenario, for pure need, most of the time.</p>
<p>Just remember the FAFSA only tells you what schools expect your family to contribute. Some meet full need…meaning the give you the difference (mix of loans and grants) but many have a pool of money they give out until it is gone. Each school is different and no school is obligated to give you money.</p>
<p>Get your parents to fill out estimated FAFSA and/or do each potential school’s net price calculator to see where you stand. Then have frank conversation with parents about what they are willing to spend.</p>
<p>They are paying for your private high school tuition?</p>
<p>It makes a big difference as to which schools you are a good candidate for, in terms of gpa and test scores, and which ones you are considering as to what monies you might get in merit and financial aid. Most schools do not even meet need for most students. They list what you can get from the government and refer you parents to PLUS for Direct Parent loans. You generally have to be at the top of the accepted student pool to get aid or merit money. If you are looking at schools that use PROFILE, a number of them do meet full need for all applicants, AS THEY DEFINE IT, or most of it. How they meet it is up to them. It is usually a combo of self help, government money (mostly self help) and their own grants. Those schools that also give merit tend to reduce their aid by those scholarships.</p>