Financial Aid

When Families Ask Colleges for More Money: An Inside Look at the Subjective Process of Financial Aid Appeals

Thoughts and Response to The Chronicle of Higher Education article,
When Families Ask Colleges for More Money: An Inside Look at the Subjective Process of Financial Aid Appeals by Beckie Supiano (April 29, 2011, Volume LVII, Number 34)

Beckie Supiano’s thoughtful review When Families Ask Colleges for More Money: An Inside Look at the Subjective Process of Financial Aid Appeals provided an interesting perspective of a private college’s financial aid process. For many, the college search and application process is a daunting one; however, the reality of funding and actually paying college tuition is even more so. At a time when the economy seems uncertain, many families are struggling with day to day expenses, more and more are experiencing a gap in resources needed for tuition. According to Ms. Supiano, most colleges have seen an increase in the number of appeals since the recession. Supiano noted at Occidental College last year, half of the 1,600 families who applied for aid appealed the decision. However, Occidental is not alone. The Chronicle of Higher Education has reported a rising trend in the number of families applying for aid versus prior years as well as an increase in the number of families requesting additional funds after receiving their financial award notification letters. In conjunction with receiving record number applications, many college administrators now face the challenge of helping students understand the financial realities of actually attending the college of their dreams.

Some may wonder how the appeal process works and whether it is worth the effort to approach a school for more funds. You should know that most appeals are processed by the aid office while a certain percentage of requests are actually reviewed by a special committee. During the review, the committee carefully considers each family’s unique situation and weighs the materials presented to determine whether or not to award more aid. Keep in mind, as Ms, Supiano states, colleges have only so much money to disburse. For some colleges, the admission process is need-blind, meaning the selection committee accepts students strictly based upon the merits of their academic achievements and contributions. For other schools, the admission process includes evaluation of students’ financial need, too.

According to Ms. Supiano’s research, “at Occidental, the first 70% or so of students are selected based on the strength of their application, without regard to pay. For that last 30%, financial need will also play a role.” In the end, a portion of students were denied acceptance because they would require too much financial support. This does not mean that colleges like Occidental do not support needy students. On the contrary, many students receive federal Pell Grants and other types of financial support. Also, most colleges carefully consider family situation and try to create packages that help students meet their goal. However, do not be confused. When a college promotes that it meets 100% of student need, this does not mean that it covers 100% of the tuition. Most colleges use an institutional financial methodology that differs from the federal one typically generated by completing the FAFSA form.

I offer this perspective because it is very important to have a number in mind at the start of the college search process. By this I mean parents should engage in an open conversation with their child before applying to schools. Families should determine a fixed dollar amount per year that they feel comfortable paying as part of their out of pocket expense for college tuition and expenses. As you tour campuses, plan on visiting the financial aid offices or talking with the admissions representatives specifically about how the school distributes and determines aid eligibility. Do you know if the college offers merit scholarships and if so, what are the qualifying factors? Do you know the average award amounts per student for all aid, including loans, work study, and grants? Do you know the average indebtedness of its graduates? If not, don’t be afraid to ask.

This is the time to become an educated consumer and to consider that you are purchasing an education and making an investment. Start the conversation and research early on. Never assume that just because your child may be an A student and in the top 10% of his class that he is guaranteed a scholarship. Also, do not assume that your income is too high to preclude your child from receiving assistance. Do not listen simply to the experiences shared by friends, cousins, neighbors—every situation is unique—know that when you create a potential list of “will apply” schools that you are well aware of the financial policies and implications of each as well. Get informed and take control, when you do the process of applying to college and seeking aid becomes immeasurably less stressful and a more rewarding and satisfying one.