Defining Financial Aid Terms for Seniors
Shelly Humbach • April 14, 2020
By now you’ve received financial aid awards from the schools that have offered you admission. But interpreting those awards might seem a bit like reading a foreign language.
Here are six common terms that you will see on a financial aid award and some ideas on how to assess your offers.
In addition, it’s possible that your family’s financial circumstances have changed since you applied. Whether that is related to the current coronavirus pandemic or other reasons, most colleges have a process for reconsidering your financial aid award. This process is typically called Professional Judgement. We’ve included some information below on how to appeal your financial aid award.
1. Cost of Attendance
- The Cost of Attendance is more than just tuition; it is an estimate of the total expense for one year of attendance. It should include - 1) Tuition & Fees; 2) Room & Board; 3) Books & Supplies; 4) Personal Expenses, 5) Transportation (getting to and from the campus). If the financial aid award does not include these items, search the website for the information or call the college.
2. Expected Family Contribution (EFC)
- The amount your family is expected to pay toward college (your EFC) is calculated by the FAFSA (Free Application for Student Aid). You can find your EFC on the confirmation page you received when you submitted your FAFSA form. This number should be listed on all your awards. If it’s not there, ask the college why.
(#1) Cost of Attendance - (#2) EFC = (#3) Student Financial Need
3. Student Financial Need
- Use the financial aid equation above to determine your “financial need” for each school. Then check the college’s award letter. If the school’s total financial aid award is less than your financial need, you have a “financial aid gap.” You must pay this gap (in addition to paying your EFC amount) with other sources of funding not provided by the school. Scholarships from community groups or other sources, personal savings, or private loans are examples of how students pay their EFC plus any financial gap.
4. Grants and Scholarships
- Grants and scholarships are awards that do not need to be repaid. Are these grants or scholarships renewable (will you receive them for just freshman year or every year)? What are the eligibility requirements that you must meet to receive the scholarship for additional years (a minimum GPA, a certain number of course credits, etc.)?
5. Loans
- Has the college included student or parent loans in your award? This money must be repaid by you or your parents. A financial aid offer with only loans may not be the best choice for you.
6. Work-study
- A work-study award is potential income that you may earn by working part-time in a work-study position. Most work-study jobs are on-campus which can make them convenient, but a work-study award does not guarantee you a work-study job. You must apply for work-study positions like any other part-time job. And just like other part-time jobs, you will receive a paycheck for your work-study earnings. It is not automatically applied toward your cost of attendance. Contact the university financial aid office to learn about the availability and application process for work-study positions.
Are you being offered a mix of grants, scholarships, loans and work-study? The more money you don’t have to pay back, or earn by working, (ideally - more scholarships and grants, less loans and work-study) the better.
In June, I hosted my annual Senior Essay Writing Workshop. This was the first in-person workshop since 2019. I bet you can guess why. I was elated to meet my students face-to-face after months, even years, of connecting through the screen. Imagine my surprise at their height, super-smiles, and warm laughter. Dang, it was wonderful. So, essentially, all my in-state seniors gather at my house for a three-hour intensive workshop on crafting a killer college essay. As I was preparing for the event, it occurred to me that I might be in competition with their PHONE. Classic directness (this is probably a character flaw) led me to inform my students and their parents, in advance, that this would be a no-phone gathering. My messaging went something like this, Important: Phones are placed in a basket at the door and retrieved at noon. No exceptions. Parents: If you need to reach your student during the workshop, text me directly at **********. Now, I am fully on board with the phone-free movement. I support it, advocate for it, and live it (I brilliantly quit all personal media last November). And I thought: my event, my rules. I was a little concerned about how this announcement would land. Turns out my concern was mainly about the parents. The kids? Not so much. In fact, research indicates that students crave phone-free learning environments. Suffice to say, the workshop was a smashing success. Not a single student pushed back against the policy. One poor soul forgot to retrieve her phone and left it sitting all alone in the basket. Not to worry, though. She didn’t get far before turning back to grab it. Here’s the truth: We don’t have to bow down to every technological whim or societal pressure. As adults, we know the phone is a problem, and it’s our job to foster healthy, happy individuals. So let's keep this momentum going. As Maya Angelou wisely said, “When you know better, do better.”
I work with incredible colleagues; collaborative, smart and supportive. They make me better and I am deeply grateful. Every year, Jennie Kent and Jeff Levy of Big J Educational Consulting share invaluable information regarding college admissions. Their research is impeccable and accurate and provides crucial data to help students and families make informed college decisions. Read on, share broadly and give a shout out to these generous professionals! Early Decision and Regular Decision Acceptance Rates Class of 2028 Domestic Undergraduate Need-Based and Merit Aid Class of 2028 In-State and Out-of-State Acceptance Rates Class of 2028 Financial Aid for International Noncitizens Class of 2028 International Noncitizens Acceptance Rate and Yield Class of 2028 Percentage of Students Submitting SAT and ACT Scores Class of 2028 Athletic Divisions and Conferences (partial list) Class of 2028 - NEW! These charts are visual, interactive, and easy to use. They make it possible to instantly sort using any column's metrics and to easily compare subsets of colleges. They are free and can be accessed at www.bigjeducationalconsulting.com/resources . From Jennie and Jeff: We hope you find these resources helpful in your work guiding students. Please feel free to share them broadly as long as they remain in their original unedited form. Permission is not granted to those charging a fee for their distribution. If you find an error after cross-referencing with an institution's Common Data Set, please contact us at info@bigjconsult.com . Thank you!
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