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Interesting article from the AP on how willing some colleges are to haggle over financial aid: Some college students are angling for a better deal on financial aid (article moved, link deleted -Admin). Carnegie-Mellon University is cited as one school that openly invites acceptees to show them offers from other colleges.

(Don't call it "haggling", though - try "reconsidering"!)

The article includes some advice on how to approach the college:
Denver education consultant Steven Antonoff said parents might call the school and say: "I don't want to barter with you. I am merely calling. We are fairly affluent, but we are not made of money. Biff wants to go to your place more than he does this other place and the difference in aid packages is ..."

By burningman on Friday, March 22, 2002 - 12:23 pm: Edit

IMO, it's always a good idea to ask for a better deal. Particularly at private colleges, the financial aid people often have some latitude to make adjustments. A thousand or two thousand dollars may not seem like much compared to a price tag in the tens of thousands, but it's certainly money you don't want to leave on the table.

Also, comparing offers may disclose calculation errors. Compare the raw EFC numbers between schools, and investigate if they differ significantly. The different numbers might reflect different practices (e.g., one school considering home equity and another not), or one might have made an error.

By Dadster on Saturday, March 23, 2002 - 10:45 am: Edit

Right on, burningman - it never hurts to ask! At most, you might have to fill out an extra form, well worth the trouble if it means even 1K more.

By Dadster on Thursday, April 11, 2002 - 10:42 am: Edit

The Wall Street Journal just published another article about this very topic, Colleges Clamp Down on Financial Aid, Making Haggling a Difficult Approach [dead link deleted - admin]. This is the last year before the 28-school financial aid pact takes effect and reduces the bargaining power of families.

According to the author, Lynn Asinof, college financial aid offices are being inundated by callers trying to better their offers.

A couple of individual college policies reported in the article:

Carnegie Mellon - Invites students to submit better aid offers. Tries to respond in 48 hours.

Duke University - Provides aid based on need, but will re-evalute any new financial information submitted.

MIT - Need-based aid only. Guarantees to meet full need of all admitted. Will look at new financial data. Average grant this year is $20,000.

Time to go for broke, I guess - things could get tougher next year, at least at the 28 "co-conspirators".

By Violet on Sunday, April 21, 2002 - 10:36 am: Edit

Hi. I can't access your article Roger or yours Dadster. Is there any way either or both of you could cut and paste and email them to me? This is the week I have to meet with the financial people at MIT and Columbia and get down to the nuts and bolts of where my daughter will go. For some reason the MIT figure came in less than Columbia and all the others by anywhere from two thousand to five thousand. Something seems off somewhere. Thanks. V

By Roger (Roger) on Tuesday, April 23, 2002 - 12:39 pm: Edit

Violet, the WSJ article requires one be be a subscriber, and the other article seems to have been moved or deleted. If I can find a new location, I'll revise the link.

By Dadster on Tuesday, May 21, 2002 - 08:17 pm: Edit

Hey, Violet, how did the aid haggling go?

By Chrisd on Tuesday, May 21, 2002 - 08:58 pm: Edit

Who are the 28 schools creating this pact? I didn't see their names in the linked earlier posting.

By Bill on Thursday, June 13, 2002 - 12:16 am: Edit

Advice needed.

Received termination notice from company. Knew it was coming as salary has been dropping and let Financial Aid Office (FAO) of this small private college know as the numbers fell. I spoke with FAO this week and response was like what the wizard said to Dorothy after she came back with the broom. FAO told me that when I receive final employment notice to let them know and they would work with me. Now they are saying that I should come back to them in October. When I asked what is going to happen assuming I cannot find a new position, FAO indicated more subsidized loans. I do not want to pull my son out before he attends. He understands and is willing to attend state university. We want to make it work and have enough funds plus his aid to cover first year plus good part of second. FAO indicated that it is not wise to use all funds. That’s great but my other funds are running low. In a very long and roundabout way, how else can I convince FAO to help? Sounds like they have been hurt in past by parents who said they needed funds and then did not after financial aid given. I even offered to sign document indicating that I would give funds back if I can regain a position with salary I made. Other than withdrawing ( I should have not removed that deposit from state program), I can only keep them up to date and hope that I do find another position or that they will come through as discussed. Both alternatives do not sound promising. Sorry for this long message.

By California Mom (Calmom) on Thursday, June 13, 2002 - 01:06 am: Edit

Bill,
It might be a good idea to post the name of the college. Maybe someone here might have experience with the financial aid practices of that college.

IF you could count on the college to give a good award next year, based on 2002 income and the assets you have at the end of the year, and IF you feel that your future employment prospects are reasonably good -- then it would be safe to use existing funds to cover the first year, assuming that you will get a more generous award for the 2nd year. But the FAO's indication that using all funds is "not wise" is a red flag, possibly, that you can not count on future aid being increased.

Also, talk to your son about this:
If he could go to the private college for only one or two years, knowing that for financial reasons he might have to complete his education at the state U., would he want to take that approach? A small LAC may offer some benefits that are especially valuable in the first year or two of college (small classes taught by real profs, as opposed to large classes taught by grad students). In the later years of college, as students take advanced courses, these differences are less significant.

If you really do have funds on hand that can be used for the first year, it may be that simply the ability to attend the private college for one or two years would be a wonderful opportunity. Of course, you don't know what the future will hold financially - it may be that in a year you will have found another, better job and will easily be able to pay for the remaining college years. (I guess the best financial approach is to plan for the worst but hope for the best).

By Patty Estep on Monday, January 27, 2003 - 06:59 pm: Edit

Is there anyway to indicate on the Fafsa that though both my parents have a steady job with a healthy income, taht most of their money goes toward rent and car payments and that they have absolutely no money in savings or bonds or stocks? If I cannot show this information on a Fafsa, can I provide it to colleges to receive more aid?

By ravi on Tuesday, January 28, 2003 - 12:21 am: Edit

You can write to each college . We have a similar situation and we wrote an explanatory Note signed by thy Parents and student and mailed to all the colleges

By Brownie_07 (Brownie_07) on Saturday, April 26, 2003 - 07:00 pm: Edit

Does anyone know anything about negotiating aid packages at Georgetown?