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Let's say somebody filed FAFSA and CSS/PROFILE and received the following aid:

Grant: 4000 Loan: 4000: Work Study: 2000

What was his Institutional Need 10000 or 4000? In other words, did the college have a choice of giving him 10000 in grant and chose not to (for whatever reason)? Or, was the Institutional Need 4000 and they chose to make the package appear bigger by adding on the Loan component and the Work Study component?

Thanks.

amd

By Roger on Thursday, April 04, 2002 - 09:18 pm: Edit

In my experience, AMD, most institutions would say they are meeting a need of $10,000 with that kind of package. Princeton and perhaps a few others have renounced loans as part of meeting need, but most colleges apply Stafford and Perkins loans first, work study, and THEN, if there is remaining need, award grants.

To add insult to injury, depending on the school, some portion of outside scholarships may reduce the aid. If the college isn't generous, they may reduce the grant aid first, rather than the work study or loan.

There was a discussion a while back, Are Loans Real Financial Aid? that debated this issue. I personally don't like the fact that colleges tell prospective families that they meet 100% of need, and then start by awarding loans that must be repaid by the student.

By keith quiller on Saturday, January 25, 2003 - 04:50 pm: Edit

As a young man like myself I've been in certain circumstances that haven't allowed me any aid whatsoever from family. I have a deceased mother and a sick father. What actions should I take towards getting financial aid?