Financial Aid
With the cost of attending a private college or university reaching into the $40,000 range, financial aid has become a critical component in the decision-making process for students and parents as they carefully weigh their options. Since most institutions award a large percentage of their financial aid scholarships based on need, it is important for families to assess their resources (current income, assets and ability to borrow) and determine what resources they have available to pay for college.
It is also crucial to thoroughly research the policies, procedures and deadlines for the institutions to which you intend on applying. How a college uses language in their description of their policies is important to note and recognize. Listen and watch for the following financial aid buzzwords:
Need-Blind Admissions Policy – A college that is "need-blind" makes admissions decisions without regard to the student's ability to pay. The "need-blind college" does not review the student's financial circumstances until after an admissions decision is reached. Many of the wealthier and highly selective colleges are able to admit their freshman class without regard to their financial aid budgets.
Need-Aware or Need-Conscious Admissions Policy – Some colleges, when considering students with equal academic records and extracurricular abilities who are "on the cusp" of acceptance, will give preference to the student who is able to pay. Due to a smaller endowment and/or a limited financial aid budget, these schools have to consider and monitor the amount of financial aid dollars they can commit on a yearly basis.
Meet 100 Percent of Demonstrated Need – Whether a school is need-blind or need-aware, it is important to determine if they will meet 100 percent of demonstrated need through a package of grants, student loans and work-study. Schools that do not meet full need will "gap" admitted students, meaning the family will either have to take out parent loans, ask other family members to help with the costs or sadly not accept the offer of admission. Most colleges will proudly state in their materials or web sites if they meet 100 percent of demonstrated need.
