F. Duane Quinn Financial Aid Specialist

Review Cost$24,000 F.C$ 8,000 Need$16,000

Review cost $24,000.

Need = $16,000 cost $24,000 F. C. $ 8,000.

Review cost $24,000 F. C. $ 8,000. loan $3,000 work $ 2,000 grant = $11,000 meet full need Total aid = $16,000

Three General Categories of Aid Merit Aid: Based upon a “quality” Colleges Web Searches Need Based Aid Family economic circumstances Most College Aid (Grants) Most Federal /State Aid (Grants, work, subsidized loans)

Three General Categories of Aid Non-need based aid Family / Student not show economic eligibility- but not require a “quality”. Entitlement aid. PLUS loans Unsubsidized student loans Vet. / Military benefits Tax credits

Merit Awards / Merit with Need Goal: Attract Students; Influence Choice Cost:$24,000 EFC:$28,000 Need $ 0 Absolute Merit Award

Merit Awards / Merit with Need Goal: Attract Students; Influence Choice FC = 28,000 cost $24,000.

Merit Awards / Merit with Need Goal: Attract Students; Influence Choice cost $24,000. Merit Grant $18,000

Merit Awards / Merit with Need Goal: Attract Students; Influence Choice cost $24,000. Merit Grant $18,000 Unsubsidized Loan Up to $6,000.

Merit Awards / Merit with Need Goal: Attract Students; Influence Choice “It is hypocritical to advocate of more federal funding for needy students when we have funds available for students without need ” George Allan No Need for No Need Journal of Student Financial Aid Fall, 1988 Riggs, Henry E. (1994). Are Merit Scholarships Threatening the Future of Private Colleges? Trusteeship, Vol. 2, No. 3, pp

Example Cost$24,000 F.C$ 8,000 need$16,000

Meet Full Need Goal: Provide Access and Choice cost $24,000 F. C. $ 8,000. need = $16,000

Meet Full Need Goal: Provide Access and Choice cost $24,000 F. C. $ 8,000. $3,000 need = 13,000 loan

Meet Full Need Goal: Provide Access and Choice cost $24,000 F. C. $ 8,000. $3,000 $ 2,000 need = $11,000 loan work

Meet Full Need Goal: Provide Access and Choice cost $24,000 F. C. $ 8,000. $3,000 $ 2,000 loan work Grant $11,000 Total aid = $16,000

Meet % of Need Goal: Maximize Awards and Resources cost $ 24,000 F. C. $ 8,000. $ 3,000 $ 2,000 Gap = 3000 loan work Grant $8,000 Total Aid = $13,000

Preferential / Differential Goal: Institutional Goals are Primary Influence Enrollment Decisions Preferential The interest of the student is above the institutional interest. e.g.: Lower loans to students majoring in public service fields or low income Differential The interest of the Institution is above the interest of the student e.g.: Higher grants to high SAT scores

Leveraging: Merit within need $24,000 Need=$16,000 FA Rank 10 FA Rank 4 FC=$8,000

Leveraging: Merit within need $24,000 Need=$16,000 FA Rank 10 Total aid = $16,000 FA Rank 4 Total Aid = 7,000 FC=$8,000 Grant$16,000 Loans -$4000 Work - $3000 Unmet need Gap -$9000

When is Need…. Need??? Federal Methodology cost $24,000 FAFSAFM. $ 8,000. Need = $16,000

When is Need….Need?? Institutional Methodology cost $24,000 FAFSA. $12,000 PROFILE IM Need = $12,000

When is Need….Need?? $24,000 $ 8,000 $12,000 Need $16,000 Need $12,000 FM IM $ 4,000

And Just when You Think You Understand: Student Loans Subsidized Loan Interest paid awarded on need Maximums based upon year in school Unsubsidized Loan Interest accrues Not required to have need Maximums based upon year in school

Leveraging: Merit within need $24,000 Need=$16,000 FA Rank 10 total aid = $16,000 FA Rank 4 Total aid = $7,000 FC=$8,000 Grant $16,000 Loans subsidized work Unmet need Gap

Leveraging: Merit within need $24,000 Need=$16,000 FA Rank 10 Total aid = $19,000 FA Rank 4 Total aid = $7,000 FC=$8,000 Grant $16,000 Loans work Unmet need Gap Loan unsubsidized

Recap $16,000$13,000$16,000$7,000$12,000$19,000

The Effect of Private Scholarships on the Financial Aid Package “Overawards”

The Financial Aid Package cost $24,000 F. C (FM). $ 8,000. loan $3,000 work $ 2,000 grant = $11,000 meet full need OUTSIDE SCHOLARSHIP $$$$$$ $ 3000.

The Financial Aid Package cost $24,000 F. C (FM). $ 8,000. loan $3,000 work $ 2,000 grant = $11,000 meet full need $$$

The Financial Aid Package cost $24,000 F. C (FM). $ 8,000. loan $3,000 work $ 2,000 grant = $11,000 meet full need $$$$$

The Financial Aid Package cost $24,000 F. C (FM). $ 8,000. loan $3,000 work $ 2,000 grant = $11,000 meet full need

The Financial Aid Package cost $24,000 F. C (FM). $ 8,000. loan $3,000 work $2,000 grant = $8,000 unmet need “GAP” $3,000

The Financial Aid Package cost $24,000 F. C (FM). $ 8,000. loan $3,000 work $2,000 grant = $8,000 unmet need “GAP” $3,000 $$$$

Overawards: Governed by FM, not IM $24,000 $ 8,000 $12,000 Need $16,000 Need $12,000 FM Total aid = $16,000 IM Total aid = $12,000 $ 4,000

How Do College’s Adjust Awards? Institutional Policy... will differ from school to school Must have a policy Available in writing to student at time of award

How Do Colleges Adjust? Allow Outside scholarships to fill “gap”. 50% from “self-help” and 50% from Institutional grant. Reduce Institutional grant dollar for dollar. Some combination of all of these.

Tips on Negotiation: There is a difference between an “appeal” and “negotiation”. Differences in awards from schools of similar cost can be questioned. The “ I would not join a club that would have me as a member” rule. Financial Aid Officers are human too!!!